Earnings release
Page 1
Jit SIT PRESS RELEASE Teleborsa : distribution and commercial use strictly prohibited emarket sdir storage CERTIFIED SIT : PROFITABILITY AND CASH GENERATION GROW IN THE FIRST HALF OF 2026. NET DEBT IN SHARP DECLINE EBIT up 42.3 % , return to profit and positive operating cash flow of Euro 15.9 million . Outlook for 2026 confirmed Highlights In the first half of 2026 SIT reports : • Consolidated revenues of Euro 150.8 million ( -1.9 % compared to the same period of 2025 ) ; Sales of the Heating & Ventilation Division of Euro 105.0 million ( -1.6 % compared to the first half of 2025 , in line at same forex ) ; Sales of the Metering Division of Euro 43.1 million ( -1.6 % compared to the same period of 2025 ) • EBITDA of Euro 17.1 million , 11.4 % of revenues , improving vs the same period of previous year ( Euro 16.9 million , 11.0 % of revenues ) ; • • • Operating result of Euro 5.4 million ( 3.6 % of revenues ) , improved by 42,3 % vs the first half of 2025 , equal to Euro 3.8 million ( 2.5 % of revenues ) ; Net income of Euro 0.8 million vs a loss of Euro 0.7 million in the first half of 2025 ; Operating cash flow for the first half of 2026 positive for Euro 15.9 million after investments of Euro 4.7 million ; Net financial position of Euro 125.8 million improving both versus end of 2025 ( Euro139.3 ) and versus Euro 150.8 million as of June 30 , 2025 . In the second quarter of 2026 the results are : • Consolidated revenues of Euro 78.4 million , -6.3 % compared to the second quarter of 2025 ; Sales of the Heating & Ventilation Division of Euro 54.2 million , -4.3 % compared to the second quarter of 2025 ( -3.9 % at same forex rates ) ; Sales of the Metering Division of Euro 23.2 million , down 8.7 % versus the same period of the previous year . A Euro 100 million financing transaction was completed with a pool of financial institutions , aimed at optimizing the debt profile and supporting the Group's investment plan and future growth . *** Padova , 5 August 2026 - The Board of Directors of SIT S.p.A. , a company listed on the Euronext Milan segment of the Italian Stock Exchange , at today's meeting chaired by Federico de ' Stefani , Executive Chairman , approved the consolidated results for the first half of 2026 . Federico de ' Stefani , Executive Chairman of SIT stated : " The results of the first half of the year show strong progress with respect to the priorities we have set for 2026 : reducing net financial debt and improving the Group's profitability . 1
Page 2
2 PRESS RELEASE Despite the slight contraction of revenues and a still complex market environment, SIT generated a positive operating cash flow of Euro 15.9 million, which made it possible to reduce net financial debt to Euro 125.8 million, with an improvement of Euro 13.5 million compared to the end of 2025 and Euro 25 million compared to June 30 last year. In the period , the Group recorded a further strengthening of operating performance: the EBITDA margin rose to 11.4%, with prospects for further growth, the operating result grew by more than 42% and the net result returned to positive. These results reflect the effectiveness of the actions taken on cost discipline, the efficiency of the operating structure and the focus of resources on the activities with the highest potential. At the same time the Group's industrial and technological development path continues, supported by investments in research and innovation. The visibility gained on the third quarter, the seasonality of the Heating & Ventilation business and the solidity of the commercial pipeline allow us to confirm our expectations for the full year 2026, with the aim of continuing to improve profitability, cash generation and financial structure." CONSOLIDATED KEY FINANCIALS (Euro.000) H1 26 % H1 25 % Diff% Revenues 150,763 100.0% 153,692 100.0% (1.9%) EBITDA 17,130 11.4% 16,855 11.0% 1.6% EBIT 5,375 3.6% 3,778 2.5% 42.3% Net income 836 0.6% (697) -0.5% 220.1% Cash flow from operations 15,938 1,279 (Euro.000) 30/06/2026 31/12/2025 30/06/2025 Net financial debt 125,837 139,321 150,825 Net financial debt/LTM adj EBITDA 3.16 3.26 4.13 Net trade working capital 67,221 72,503 77,252 Net trade working capital/Revenues 22.1% 22.7% 24.9% Sales performance Consolidated Revenues by Division (Euro.000) H1 2026 % H1 2025 % diff diff % Heating & Ventilation 105,031 69.7% 106,700 69.4% (1,669) (1.6%) Metering 43,142 28.6% 43,827 28.5% (685) (1.6%) Total business sales 148,173 98.3% 150,527 97.9% (2,354) (1.6%) Other revenues 2,590 1.7% 3,165 2.1% (575) (18.2%) Total revenues 150,763 100% 153,692 100% (2,929) (1.9%)
Page 3
3 PRESS RELEASE (Euro.000) Q2 26 % Q2 25 % diff diff % Heating & Ventilation 54,173 69.1% 56,585 67.7% (2,413) (4.3%) Metering 23,189 29.6% 25,399 30.4% (2,210) (8.7%) Total business sales 77,362 98.7% 81,984 98.0% (4,623) (5.6%) Other revenues 1,043 1.3% 1,654 2.0% (611) (36.9%) Total revenues 78,405 100% 83,638 100% (5,234) (6.3%) Consolidated revenues by geography (Euro.000) H1 26 % H1 25 % diff diff % Italy 44,900 29.8% 50,898 33.1% (5,999) (11.8%) Europe (excluding Italy) 66,504 44.1% 60,873 39.6% 5,631 9.3% America 28,184 18.7% 29,092 18.9% (908) (3.1%) Asia/Pacifico 11,175 7.4% 12,829 8.3% (1,654) (12.9%) Total revenues 150,763 100% 153,692 100% (2,929) (1.9%) (Euro.000) Q2 26 % Q2 25 % diff diff % Italy 23,362 29.8% 28,935 34.6% (5,573) (19.3%) Europe (excluding Italy) 33,768 43.1% 32,266 38.6% 1,502 4.7% America 14,745 18.8% 15,135 18.1% (390) (2.6%) Asia/Pacifico 6,530 8.3% 7,301 8.7% (771) (10.6%) Total revenues 78,406 100% 83,638 100% (5,232) (6.3%) Consolidated revenues for the first half of 2026 amounted to Euro 150.8 million, recording a slight decrease of 1.9% compared to the same period of 2025 (Euro 153.7 million). At constant exchange rates, the reduction was 1.1%. Sales of the Heating & Ventilation Division in the first half of 2026 amounted to Euro 105 million, down 1.6% compared to Euro 106.7 million in the first half of 2025. At constant exchange rates, sales are in line with the first half of 2025. The following table shows the sales by geographical area of the Heating & Ventilation Division: (Euro.000) H1 26 % H1 25 % diff diff % Italy 19,703 18.8% 21,759 20.4% (2,056) (9.4%) Europe (excluding Italy) 49,552 47.2% 44,555 41.8% 4,997 11.2% America 25,110 23.9% 26,859 25.2% (1,749) (6.5%) Asia/Pacifico 10,666 10.2% 13,527 12.7% (2,861) (21.1%) Total sales 105,031 100% 106,700 100% (1,669) (1.6%)
Page 4
4 PRESS RELEASE (Euro.000) Q2 26 % Q2 25 % diff diff % Italy 9,711 17.9% 11,123 19.7% (1,412) (12.7%) Europe (excluding Italy) 24,896 46.0% 23,393 41.3% 1,503 6.4% America 13,364 24.7% 14,000 24.7% (636) (4.5%) Asia/Pacifico 6,202 11.4% 8,069 14.3% (1,867) (23.1%) Total sales 54,173 100% 56,585 100% (2,412) (4.3%) Looking at sale by geography, in Italy sales decreased by 9.4% in the first half of the year compared to the same period in 2025, mainly recorded in Central Heating due to weaker market demand, while Direct Heating and ventilation were positive. As for Europe, excluding Italy, in the first half of 2026 there was significant growth in sales, equal to 11.2% compared to the same period of the previous year. This positive result is in line with the trend of recent quarters thanks to growth in Turkey, in particular in sales to the local market and some OEMs operating in Central Heating. Central Europe was also positive, while the UK marked a reduction in the period as a result of a second quarter down compared to the second quarter of the previous year. America recorded a trend in the first half in reduction by 6.5% compared to the first half of the previous year, equal to -1.7% on a like -for-like exchange rate basis. The half -year marks a negative trend in Central Heating and Storage Water Heating, reflecting particularly marked purchasing policies at the en d of 2025 and some delays in customer projects, while Direct Heating remains positive. The Asia Pacific area recorded a reduction of 21.1% in the first half of 2026 compared to the same period in 2025, where China continues to record a weak market trend, with Australia falling due to regulatory changes and the other geographies impacted by the international context. Metering Division Sales of the Metering Division amounted to Euro 43.1 million compared to Euro 43.8 million, marking a decrease of 1.6% compared to the same period of the previous year. Sales in the Smart Gas Metering segment amounted to Euro 26.0 million compared to Euro 28.6 million recorded in the first half of 2025, with a reduction of 9.1%; residential meters slowed down by Euro 5.8 million, or 23.2%, due to some short term delivery policies implemented by the main customer, while growth in Commercial & Industrial (+Euro 3.2 million, +130%) thanks to the introduction of new products. Sales remain prevalent in Italy, 93.0% compared to 96% in the same period of 2025. Water Metering sales amounted to Euro 17.2 million, up 12.6% compared to the first half of 2025. The trend is due to the good performance of direct sales of meters to utilities with sales to OEMs remaining stable. As far as geographical distribution is concerned, sales in Portugal were 24.9%, Spain 31.5%, the rest of Europe 29.1% and 13.2% and 1.3% in America and Asia respectively. Economic performance Consolidated revenues for the first half of 2026 amounted to Euro 150.8 million, down 1.9% compared to the same period of 2025 (Euro 153.7 million). EBITDA amounted to Euro 17.1 million, 11.4% of revenues, an increase compared to the first half of the previous year (equal to Euro 16.9 million, 11.0% of revenues) incorporating the normalization of operations with the elimination of the restructuring initiatives implemented during the previous year.
Page 5
5 PRESS RELEASE With regard to the main cost items, the purchase cost of raw materials and consumables, including changes in inventories, amounted to Euro 75.4 million, accounting for 50% of revenues, recording a slight increase compared to 48.2% in the first half of 2025. Service costs amounted to Euro 22.2 million compared to Euro 23.7 million in the same period of 2025 (respectively equal to 14.7% and 15.4% of revenues). Personnel costs are equal to Euro 35.2 million compared to Euro 37.1 million ( -5.2%), with an incidence on revenues of 23.3% compared to 24.2% in the same period of the previous year. It should be noted that net of one -off costs for reorganization initiatives, personnel costs amounted to Euro 34.8 million, 23.1% of revenues substantially in line with the first half of 2025 where the incidence was 22.4%. Depreciation, amortization and impairment losses, amounting to Euro 11.8 million, decreased compared to Euro 13.2 million in the first half of 2025, accounting for 7.8% and 8.6% of revenues, respectively. The operating result (EBIT) was positive and amounted to Euro 5.4 million, 3.6% of revenues, compared to an operating result for the first half of 2025 of Euro 3.8 million, 2.5%. Net financial expenses for the first half of 2026 amounted to Euro 3.0 million compared to Euro 2.8 million in the same period of 2025, respectively 2.0% and 1.8% of revenues. Income taxes for the period amounted to Euro 1.8 million, mainly representing taxes accrued in the subsidiaries and excluding the allocation of deferred tax assets. In the same period of the previous year, taxes amounted to Euro 2.0 million. The net result for the first half of 2026 amounted to a profit of Euro 0.8 million compared to a loss of Euro 0.7 million in the same period of the previous year. Financial performance As of June 30, 2026, the net financial position amounted to Euro 125.8 million, a significant reduction compared to the year-end 2025 value of Euro 139.3 million and compared to Euro 150.8 million as of June 30, 2025. The evolution of the net financial position is shown in the following table: (Euro.000) H1 2026 H1 2025 Cash flow from current activities (A) 17.792 17,289 Change in inventories (5.793) (7,748) Change in trade receivables 2.859 (7,687) Change in trade payables 8.832 5,107 Change in other current assets and liabilities (2.119) (2,107) Cash flow from changes in Working Capital (B) 3.779 (12,435) CASH FLOW FROM OPERATING ACTIVITIES (A + B) 21.571 4,854 Cash flow from investing activities (C) (5.633) (3,575) CASH FLOW FROM OPERATING & INVESTING ACTIVITIES (A + B + C) 15.938 1,279 Changes for interest (3.305) (3,357) Changes MTM derivatives and amortised cost 326 (31) Changes in translation reserve and other equity items 412 (824) Changes to financial assets (127) (1,480) IFRS 16 241 (562) Change in net debt 13.485 (4,975) Net financial position - initial 139.320 145,850 Net financial position - final 125.836 150,825
Page 6
6 PRESS RELEASE Cash flows for the first half of 2026 show strong cash generation from operations capable of producing Euro 2 1.6 million, an improvement compared to Euro 4.9 million in the same period of 2025, a performance due to operating performance but above all to working capital management. In the first half of 2026, in a period in which seasonality absorbed Euro 5.8 million in inventory, the management of receivables from customers and payables to suppliers produced Euro 2.9 million and Euro 8.8 million respectively, resulting in a cash flow of Euro 3.8 million after changes in other working capital items, compared to an absorption of Euro 12.4 million in the first half of 2025. Investment flows amounted to Euro 5.6 million, slightly up compared to Euro 3.6 million in the same period of 2025. Cash flows from operations after investments are therefore positive for Euro 15.9 million compared to Euro 1.3 million in the first half of 2025. Financial management includes interest of Euro 3.3 million in the period, in line with the same period of the previous year. Net debt, therefore, decreased during the first half of 2026 by Euro 13.5 million, from Euro 139.3 million to Euro 125.8 million. It should be noted that the net financial debt/adjusted EBITDA indicator improved compared to the same period in 2025, standing at 3.2x vs 4.1x. Significant events occurring after the end of the period On 4 August 2026, a financing transaction was closed for a total amount of Euro 100 million, with a duration of 5 years, with the aim of reshaping the repayment profile of some existing loans and financing the Group's investment plan. The transaction was carried out with a pool of Italian financial institutions and provides for a partial SACE guarantee on the facility dedicated to investments. The interest rate is variable, 80% hedged, with a spread that depends on the consolidated leverage ratio. Annual ESG objectives – being a sustainability-linked loan - are also envisaged in line with the Group's sustainability strategy. Outlook In the context of persistent geopolitical uncertainty, market volatility and growing inflationary pressures in the main reference markets, SIT continues to closely monitor the possible impacts on demand trends, input costs and the Group's operating dynamics. Based on the currently available management evidence, the resilience of the business model and the solidity of the commercial pipeline, management confirms expectations for the full year 2026. The Group's economic and financial fundamentals remain solid an d consistent with the defined objectives, supported by the operational efficiency initiatives launched. For the 2026 financial year, SIT therefore confirms consolidated revenue growth at a low single-digit rate, supported by a positive trend in the second half of the year. In the Heating & Ventilation business, expectations are supported by the visibility already acquired for the third quarter and the favorable seasonality of the business, while in Metering the trend recorded in the second quarter is expected to continue. The discipline in cost management highlighted in the first half of the year represents a solid basis for a further improvement in margins in the second half of the year. The Group therefore confirms its expectations of growth in operating profitability and a significant improvement in net profit compared to the previous year.
Page 7
7 PRESS RELEASE The positive cash generation expected in the year will also allow a reduction in net financial debt, expected at the end of 2026 to be in the range of Euro 130 million. It should be noted that this outlook does not incorporate the potential impacts of protracted international tensions arising from the conflict between the United States and Iran, including potential effects on supply chains and energy prices. *** Declaration of the manager responsible for the preparation of the Company’s accounts The manager responsible for the preparation of the Company’s accounts, Paul Fogolin, hereby declares, as per article 154-bis, paragraph 2, of the “Testo Unico della Finanza”, that all information related to the Company’s accounts contained in this press release are fairly representing the accounts and the books of the Company. This press release and the results presentation for the period are available on the website www.sitcorporate.it in the Investor Relations section. Today at 1 5:00 CEST, SIT management will hold a conference call to present to the financial community and press the results for the period. You may participate through the following link: https://shorturl.at/IkFno. The documentation shall be published in the “Investor Relations” section on the company website (www.sitcorporate.it) before the conference call. *** SIT, through its Business Units Heating & Ventilation, Smart Gas Metering, and Water Metering, creates intelligent solutions for e nvironmental condition control and consumption measurement for a more sustainable world. A multinational leader in its reference m arkets and listed on the Euronext Milan segment, SIT aims to be the leading sustainable partner for energy and climate control solutions serving clien t companies, paying great attention to experimentation and the use of alternative gasses with low environmental impact. The group has production sites in Italy, Mexico, Romania, China, Tunisia, and Portugal, and has a commercial structure covering all global reference markets. SIT adheres to t he United Nations Global Compact and its related principles that pro mote a responsible way of doing business and has obtained the Gold sustainability rating by EcoVadis. SIT is also a member of the European Heating Industry and the European Clean Hydrogen Alliance, as well as the Water Value Community for Italy - www.sitcorporate.it/en Contacts SIT Investor Relations Investor Relations Advisors MY TWIN Communication SIT Media Relations Paul Fogolin – CFO +39 049 829 3111 paul.fogolin@sitgroup.it Mara Di Giorgio +39 335 7737417 sit@mytwincommunication.com Andrea Schiavon +39 338 3018790 andrea.schiavon@sitgroup.it
Page 8
8 PRESS RELEASE Annex 1 BALANCE SHEET Annex 1 BALANCE SHEET (Euro.000) 30/06/2026 31/12/2025 Goodwill 63.278 63.278 Other intangible assets 38.435 40.868 Property, plants and equipment 79.496 84.406 Investments 1.357 1.527 Non-current financial assets 5.805 4.340 Deferred tax assets 11.539 11.693 Non-current assets 199.909 206.112 Inventories 82.679 76.149 Trade receivables 59.827 62.251 Other current assets 11.322 8.670 Tax receivables 1.083 2.676 Other current assets 1.873 3.055 Cash and Cash Equivalents 12.342 11.627 Current assets 169.127 164.428 Total assets 369.037 370.540 Share capital 96.162 96.162 Total Reserves 6.000 3.497 Net Profit 836 1.345 Minority interests net equity 1.461 1.171 Shareholders’ Equity 104.460 102.175 Medium/long-term loans and borrowings 43.966 57.344 Other non-current financial liabilities and derivative financial instruments 43.252 52.460 Provisions for risks and charges 9.393 9.264 Post-employment benefit provision 3.981 3.964 Other non-current liabilities 5.127 4.951 Deferred tax liabilities 7.578 8.391 Non-current liabilities 113.298 136.374 Short-term bank loans 33.675 29.209 Other current financial liabilities and derivative financial instruments 19.159 14.991 Trade payables 75.285 65.898 Other current liabilities 20.836 19.711 Tax payables 2.324 2.182 Current liabilities 151.279 131.991 Total Liabilities 264.577 268.365 Total Shareholders’ Equity and Liabilities 369.037 370.540
Page 9
9 PRESS RELEASE Annex 2 PROFIT & LOSS (Euro.000) 6M 2026 6M 2025 Revenues from sales and services 150.763 153.692 Raw materials, ancillaries, consumables and goods 81.248 82.628 Change in inventories (5.825) (8.560) Services 22.193 23.687 Personnel expense 35.189 37.138 Depreciation, amortisation and write-downs 11.792 13.164 Provisions 155 437 Other charges (income) 637 1.421 EBIT 5.375 3.778 Investment income/(charges) - - Gains/(Losses) from valuations of minority option liabilities - - Financial income 114 295 Financial charges (3.109) (3.067) Net exchange gains (losses) 587 341 Impairments on financial assets (312) - Profit before taxes 2.657 1.347 Income taxes (1.820) (2.044) Net profit for the year 836 (697) Minority interest result 290 143 Group net profit 546 (840)
Page 10
10 PRESS RELEASE Annex 3 LIQUIDITY STATEMENT (Euro.000) 2026/06 2025/06 Net profit 836 (697) Amortisation & depreciation 11.754 13.077 Non-cash adjustments 386 94 Income taxes 1.821 2.042 Net financial charges/(income) 2.995 2.773 CASH FLOW FROM CURRENT ACTIVITIES (A) 17.792 17.289 Changes in assets and liabilities: Inventories (5.793) (7.748) Trade receivables 2.859 (7.687) Trade payables 8.832 5.107 Other assets and liabilities (1.304) (839) Income taxes paid (815) (1.268) CASH FLOW GENERATED (ABSORBED) FROM CHANGES IN WORKING CAPITAL (B) 3.779 (12.435) CASH FLOW FROM OPERATING ACTIVITIES (A + B) 21.571 4.854 CASH FLOW FROM INVESTING ACTIVITIES (C) (5.633) (3.575) CASH FLOW FROM OPERATING & INVESTING ACTIVITIES (A + B + C) 15.938 1.279 Financing activities: Interest paid (3.182) (3.665) Repayment of non-current financial payables (9.464) (3.564) Increase (decrease) current financial payables (1.620) 2.418 Increase (decrease) other financial payables (1.369) (1.744) New loans - 914 CASH FLOW FROM FINANCING ACTIVITIES (D) (15.635) (5.641) Change in translation reserve 412 (824) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C + D) 715 (5.186) Cash & cash equivalents at beginning of the year 11.627 14.038 Increase (decrease) in cash and cash equivalents 715 (5.186) Cash & cash equivalents at end of the year 12.342 8.852