Earnings release
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1 PRESS RELEASE SIT: NET PROFIT UP AND POSITIVE CASH GENERATION IN THE FIRST NINE MONTHS OF 2026 AMID A CHALLENGING MARKET ENVIRONMENT Revenue of Euro 225.8 million (-5.1%), EBITDA margin at 11.4%, and net profit of Euro 1.8 million (+10.0%). For FY 2026, margins are expected to remain in line with the first nine months, with positive net profit and net debt expected between Euro 130 million and Euro 135 million. Highlights In the first nine months of 2026, SIT achieved: • Consolidated revenues of Euro 225.8 million (-5.1% compared to the same period of 2025); • Sales of the Heating&Ventilation Division of Euro 158.3 million (-3.9% compared to the first nine months of 2025); • Sales of the Metering Division of Euro 63.6 million (-6.8% compared to the first nine months of 2025) • EBITDA of Euro 25.7 million, 11.4% of revenues, in reduction compared to the same period of the previous year (Euro 28.6 million, 12.0% of revenues); • Operating profit of Euro 8.3 million (3.7% of revenues), in reduction compared to the same period of the previous year, equal to Euro 9.0 million (3.8% of revenues); • Net profit of Euro 1.8 million, an improvement compared to the first nine months of 2025 (Euro 1.6 million); • Operating cash flow for the first nine months of 2026 positive for Euro 6.6 million after investments of Euro 10.1 million; • Net financial position of Euro 137.6 million, an improvement both compared to the figure at the end of 2025 (Euro 139.3) and compared to Euro 141.9 million as of September 30, 2025. In the third quarter of 2026, the results are: • Consolidated revenues of Euro 75.0 million, -11.0% compared to the third quarter of 2025; • Sales of the Heating & Ventilation Division of Euro 53.3 million, -8.3% compared to the third quarter of 2025; • Sales of the Metering Division amounted to Euro 20.4 million, down 16.2% compared to the same period of the previous year. *** Padua, 4 November 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 of SIT, approved the consolidated results for the first nine months of 2026. Federico de' Stefani, Executive Chairman of SIT, commented: "The results for the first nine months of 2026 reflect a weaker than expected market environment, characterized by a slowdown in demand and significant postponements of orders and invoicing by customers, with effects particularly evident in the third quart er. Added to this scenario were
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2 PRESS RELEASE increasing tensions in the supply chain that introduced additional complexities in operations management and planning of production activities." Despite this environment, SIT maintained positive operating profitability and achieved net profit growth compared to the same period in 2025. Cash generation also remains positive and net financial debt is lower than in September last year. The cost containment measures already implemented allow us to face this phase with a more efficient operating structure, helping to sustain margins even in the presence of lower volumes than expected. At the same time, our commitment to innovation and the development of the activities with the greatest potential continues. For the latter part of the year, we expect business to recover slightly compared to the third quarter and expect to close 2026 with an EBITDA margin in line with that recorded in the first nine months with the aim of achieving a positive net result. On the financial front, we expect net debt to be between Euro 130 million and Euro 135 million, taking into account supply chain constraints. We remain focused on protecting the Group's profitability and financial sustainability, continuing on the path of industrial and organizational efficiency undertaken." *** CONSOLIDATED KEY FINANCIALS (Euro.000) 9M 26 % 9M 25 % Diff% Revenues 225,799 100.0% 238,000 100.0% -5.1% EBITDA 25,745 11.4% 28,565 12.0% -9.9% EBIT 8,345 3.7% 9,002 3.8% -7.3% Net income 1,792 0.8% 1,629 0.7% 10.0% Cash flow from operations 6,626 11,916 (Euro.000) 30/09/2026 31/12/2025 30/09/2025 Net financial debt 137,595 139,321 141,869 Net financial debt/LTM adj EBITDA 3.67 3.26 3.37 Net trade working capital 77,959 72,503 72,078 Net trade working capital/Revenues 25.8% 22.7% 22.7% Sales performance Consolidated revenues by Division (Euro.000) 9M 26 % 9M 25 % diff diff % Heating & Ventilation 158,329 70.1% 164,813 69.2% (6,484) (3.9%) Metering 63,583 28.2% 68,216 28.7% (4,633) (6.8%) Total sales 221,912 98.3% 233,030 97.9% (11,117) (4.8%) Other revenues 3,887 1.7% 4,971 2.1% (1,084) (21.8%) Total revenues 225,799 100% 238,000 100% (12,201) (5.1%) (Euro.000) Q3 26 % Q3 25 % diff diff % Heating & Ventilation 53,298 71.0% 58,114 68.9% (4,816) (8.3%) Metering 20,441 27.2% 24,389 28.9% (3,948) (16.2%) Total sales 73,739 98.3% 82,503 97.9% (8,763) (10.6%) Other revenues 1,297 1.7% 1,805 2.1% (509) (28.2%) Total revenues 75,036 100% 84,308 100% (9,272) (11.0%)
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3 PRESS RELEASE Consolidated revenues by geography (Euro.000) 9M 26 % 9M 25 % diff diff % Italy 65,257 28.9% 75,317 31.6% (10,060) (13.4%) Europa (excl. Italy) 101,457 44.9% 95,695 40.2% 5,762 6.0% America 42,809 19.0% 46,416 19.5% (3,607) (7.8%) Asia/Pacific 16,275 7.2% 20,571 8.6% (4,296) (20.9%) Total revenues 225,799 100% 238,000 100% (12,201) (5.1%) (Euro.000) Q3 26 % Q3 25 % diff diff % Italy 20,358 27.1% 24,419 29.0% (4,061) (16.6%) Europa (excl. Italy) 34,953 46.6% 34,822 41.3% 131 0.4% America 14,625 19.5% 17,324 20.5% (2,699) (15.6%) Asia/Pacific 5,100 6.8% 7,742 9.2% (2,642) (34.1%) Total revenues 75,036 100% 84,308 100% (9,272) (11.0%) Consolidated revenues for the first nine months of 2026 amounted to Euro 225.8 million, down 5.1% compared to the same period of 2025 (Euro 238.0 million). Sales of the Heating & Ventilation Division in the first nine months of 2026 amounted to Euro 158.3 million, down 3.9% compared to Euro 164.8 million in the period of 2025. The exchange rate impact in the period under comparison is not significant. The following table shows the sales by geographical area of the Heating & Ventilation Division: (Euro.000) 9M 26 % 9M 25 % diff diff % Italy 28,785 18.2% 30,534 18.5% (1,749) (5.7%) Europa (excl. Italy) 75,589 47.7% 69,879 42.4% 5,710 8.2% America 38,466 24.3% 42,429 25.7% (3,962) (9.3%) Asia/Pacific 15,489 9.8% 21,973 13.3% (6,483) (29.5%) Total revenues 158,329 100% 164,813 100% (6,484) (3.9%) (Euro.000) Q3 26 % Q3 25 % diff diff % Italy 9,081 17.0% 8,775 15.1% 307 3.5% Europa (excl. Italy) 26,037 48.9% 25,324 43.6% 713 2.8% America 13,356 25.1% 15,569 26.8% (2,213) (14.2%) Asia/Pacific 4,823 9.0% 8,446 14.5% (3,623) (42.9%) Total revenues 53,298 100% 58,114 100% (4,816) (8.3%) Geographically, in Italy the third quarter marks a positive trend of 3.5% compared to the same period of 2025, improving the first nine months which mark a decrease of 5.7% in sales compared to the same period of 2025, a trend recorded above all in Central Heating due to weaker market demand, while Direct Heating and ventilation are positive. As for Europe, excluding Italy, in the first nine months of 2026 there was significant growth in sales, equal to 8.2% compared to the same period of the previous year. This positive result is in continuity with the trend of recent quarters thanks to growth in Turkey in sales to the local market and some OEMs operating in Central Heating. Central Europe was also positive, albeit with a flat third quarter
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4 PRESS RELEASE compared to 2025, while the UK marked a reduction in the period as a result of a second and third quarters down compared to the previous year. The Americas showed a performance in the first nine months of 2026 down by 9.3% compared to the same period of the previous year, equal to -7.3% at constant exchange rates. The period marks a negative trend in Central Heating and Storage Water Heating, ref lecting a market slowdown and some delays in customer projects, while Direct Heating was flat versus same period of 2025. The Asia Pacific area recorded a reduction of 29.5% in the first nine months of 2026 compared to the same period of 2025, where China continues to record a weak market trend, with Australia falling due to regulatory changes and other geographies impacted by the international context. Metering Division Sales of the Metering Division amounted to Euro 63.6 million compared to Euro 68.2 million, marking a decrease of 6.8% compared to the same period of the previous year. Sales in the Smart Gas Metering segment amounted to Euro 38.2 million compared to Euro 44.5 million recorded in the first nine months of 2025, with a reduction of 14.3%; residential meters slowed down by Euro 9.8 million, or 26.2%, due to some short -term delivery policies implemented by a main customer, while growth in Commercial & Industrial (+Euro 3.4 million, +49.0%) was recorded thanks to the introduction of new products. Sales remain prevalent in Italy, 89. 1% with Greece and the UK, the main foreign destination countries. Sales in Water Metering amounted to Euro 25.4 million, up 7.3% compared to the first nine months of 2025. The performance is positive despite a third quarter down by 2.1% compared to the third quarter of 2025; the sales mix sees an increase in direct sales to utilities while sal es to OEMs are slightly down ( -2.9%). As regards geographical distribution, sales in the first nine months were recorded in Portugal for 2 2.9%, in Spain for 29 .0%, in the rest of Europe for 33 .4%, in America for 13.4% and in Asia Pacific area for 1.3%. Economic performance Consolidated revenues for the first nine months of 2026 amounted to Euro 225.8 million, down 5.1% compared to the same period of 2025 (Euro 238.0 million). EBITDA amounted to Euro 25.7 million, 11.4% of revenues, down compared to the same period of the previous year (equal to Euro 28.6 million, 12.0% of revenues) both due to lower volumes and unfavourable sales mix compared to 2025, incorporating in 2026 also the effect of exogenous factors on the trend of production costs only partially offset by the reduction of other operating costs. Regarding the main cost items, the purchase cost of raw materials and consumables, including changes in inventories, amounted to Euro 115.7 million, representing 51.2% of revenues, an increase compared to 49.7% in the same period of 2025. Service costs amounted to Euro 33.3 million, marking a reduction compared to Euro 35.1 million in the same period of 2025 (maintaining an incidence of 14.8% of revenues in both periods). Personnel costs amounted to Euro 5 0.1 million compared to Euro 53.1 million ( -5.9%), with an incidence on revenues of 22.2% compared to 22.3% in the first nine months of the previous year. It should be noted that net of one -off costs for reorganization operations, personnel costs amounted to Euro 48.8 million, 21.6% of revenues compared to Euro 50.3 million, 21.2% of revenues, recorded in the first nine months of 2025. Depreciation, amortization and impairment losses, amounting to Euro 17.4 million, decreased compared to Euro 19.6 million in the same period of 2025, accounting for 7.7% and 8.3% of revenues, respectively.
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5 PRESS RELEASE The operating result (EBIT) amounted to Euro 8.3 million, 3.7% of revenues, compared to an operating result for the same period of 2025 of Euro 9.0 million, 3.8% of revenues. Net financial expenses for the first nine months of 2026 amounted to Euro 5.4 million compared to Euro 4.4 million in the same period of 2025, respectively 2.4% and 1.9% of revenues. It should be noted that the closing of the refinancing transaction on Aug ust 4, 2026 resulted in the recognition pursuant to IFRS 9 of financial expenses in the period of Euro 0.5 million. Income taxes for the period amounted to Euro 1.9 million, mainly representing taxes accrued in the subsidiaries and excluding the accrual of deferred tax assets. In the same period of the previous year, taxes amounted to Euro 3.4 million. Net profit for the first nine months of 2026 amounted to Euro 1.8 million compared to Euro 1.6 million in the same period of the previous year. Financial performance As of September 30, 2026, net financial position amounted to Euro 137.6 million, down from Euro 139.3 million at the end of 2025 and from Euro 141.9 million as of September 30, 2025. The evolution of the net financial position is shown in the table below: (Euro.000) 9M 2026 9M 2025 Cash flow from current activities (A) 27,189 29,903 Change in inventories (3,398) (9,092) Change in trade receivables 2,476 (2,803) Change in trade payables (4,187) 7,392 Change in other current assets and liabilities (5,308) (6,561) Cash flow from changes in Working Capital (B) (10,417) (11,064) CASH FLOW FROM OPERATING ACTIVITIES (A + B) 16,772 18,839 Cash flow from investing activities (C) (10,146) (6,923) CASH FLOW FROM OPERATING & INVESTING ACTIVITIES (A + B + C) 6,626 11,916 Changes for interest (5,260) (5,612) Changes MTM derivatives and amortised cost (244) 403 Changes in translation reserve and other equity items (458) (536) Changes to financial assets 873 (1,735) IFRS 16 192 (455) Change in net debt 1,726 3,981 Net financial position - initial 139,321 145,850 Net financial position - final 137,595 141,869 Cash flows for the first nine months of 2026 show cash generation from operations of Euro 16.7 million, down compared to Euro 18.8 million in the same period of 2025, performance due to operating income performance while the trend in working capital remained substantially in line in the two periods. Investment flows amounted to Euro 10.1 million, up compared to Euro 6.9 million in the same period of 2025. Cash flows from operations after investments are therefore positive for Euro 6.6 million compared to Euro 11.9 million in the first nine months of 2025. Financial cash flows included interest of Euro 5. 3 million in the period, down compared to Euro 5.6 million in the previous year. Net debt, therefore, decreased during the first nine months of 2026 by Euro 1.7 million, from Euro 139.3 million to Euro 137.6 million.
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6 PRESS RELEASE As of September 30, 2026, the net financial debt/adjusted EBITDA indicator stood at 3.7x vs 3.4x in the previous year. Significant events occurring after the end of the period On October 1, SIT completed the acquisition of Conthidra, a Spanish distributor of water metering products and solutions, previously 25%-owned by the Group. The transaction supports SIT's strategy to further strengthen its position in the European water market. It should be noted that on October 15, 2026, Ms. Loredana Anna Conidi resigned from her position as Standing Auditor of the Company due to a newly arisen incompatibility. Attorney Carlomaria Setti Della Volta, previously Alternate Auditor, succeeded her with immediate effect. Outlook The market environment during the first nine months of 2026 was characterized by weak demand and significant postponements of orders and revenue recognition by certain customers, with particularly evident effects in the third quarter, which was also impact ed by shortages of electronic components. Based on the information currently available, SIT expects a slight recovery in business activity in the fourth quarter of 2026 compared with the previous quarter. The cost-reduction measures already implemented are expected to support operating profitability, with full-year 2026 EBITDA margin anticipated to remain in line with the 11.4% recorded in the first nine months. Management targets a positive net result for the 2026 financial year. Net financial debt at year -end 2026 is expected to be in the range of €130 million to €135 million, taking into account operating constraints related to the supply chain. The Group therefore continues its efficiency improvement journey, maintaining a strong focus on margin protection, working capital management and financial sustainability. *** 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.
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7 PRESS RELEASE Conference call Today at 15:00 CET, 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/JXpVT. 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
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8 PRESS RELEASE Annex 1 BALANCE SHEET (Euro,000) 30/09/2026 31/12/2025 Goodwill 63,278 63,278 Other intangible assets 37,519 40,868 Property, plants and equipment 77,295 84,406 Investments 1,257 1,527 Non-current financial assets 6,787 4,340 Deferred tax assets 11,303 11,693 Non-current assets 197,439 206,112 Inventories 79,837 76,149 Trade receivables 59,987 62,251 Other current assets 11,223 8,670 Tax receivables 1,775 2,676 Other current assets 2,950 3,055 Cash and Cash Equivalents 24,408 11,627 Current assets 180,181 164,428 Total assets 377,619 370,540 Share capital 96,162 96,162 Total Reserves 4,666 3,497 Net Profit 1,792 1,345 Minority interests net equity 1,514 1,171 Shareholders’ Equity 104,134 102,175 Medium/long-term loans and borrowings 91,665 57,344 Other non-current financial liabilities and derivative financial instruments 43,069 52,460 Provisions for risks and charges 8,939 9,264 Post-employment benefit provision 3,862 3,964 Other non-current liabilities 5,248 4,951 Deferred tax liabilities 7,314 8,391 Non-current liabilities 160,098 136,374 Short-term bank loans 13,618 29,209 Other current financial liabilities and derivative financial instruments 16,600 14,991 Trade payables 61,865 65,898 Other current liabilities 20,106 19,711 Tax payables 1,199 2,182 Current liabilities 113,387 131,991 Total Liabilities 273,485 268,365 Total Shareholders’ Equity and Liabilities 377,619 370,540
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9 PRESS RELEASE Annex 2 PROFIT & LOSS (Euro,000) 9M 2026 9M 2025 Revenues from sales and services 225,799 238,000 Raw materials, ancillaries, consumables and goods 119,061 127,908 Change in inventories (3,375) (9,694) Services 33,334 35,112 Personnel expense 50,136 53,090 Depreciation, amortisation and write-downs 17,442 19,649 Provisions 159 1,199 Other charges (income) 697 1,735 EBIT 8,345 9,002 Investment income/(charges) - - Gains/(Losses) from valuations of minority option liabilities - - Financial income 205 205 Financial charges (5,559) (4,649) Net exchange gains (losses) 1,046 436 Impairments on financial assets (312) - Profit before taxes 3,725 4,994 Income taxes (1,933) (3,365) Net profit for the year 1,792 1,629 Minority interest result 342 271 Group net profit 1,450 1,358
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10 PRESS RELEASE Annex 3 CASH FLOW STATEMENT (Euro,000) 2026/09 2025/09 Net profit 1,792 1,629 Amortisation & depreciation 17,401 19,563 Non-cash adjustments 708 902 Income taxes 1,933 3,366 Net financial charges/(income) 5,355 4,443 CASH FLOW FROM CURRENT ACTIVITIES (A) 27,189 29,903 Changes in assets and liabilities: Inventories (3,398) (9,092) Trade receivables 2,476 (2,803) Trade payables (4,187) 7,392 Other assets and liabilities (2,474) (3,843) Income taxes paid (2,834) (2,718) CASH FLOW GENERATED (ABSORBED) FROM CHANGES IN WORKING CAPITAL (B) (10,417) (11,064) CASH FLOW FROM OPERATING ACTIVITIES (A + B) 16,772 18,839 CASH FLOW FROM INVESTING ACTIVITIES (C) (10,146) (6,923) CASH FLOW FROM OPERATING & INVESTING ACTIVITIES (A + B + C) 6,626 11,916 Financing activities: Interest paid (3,909) (4,146) Repayment of non-current financial payables (52,921) (4,528) Increase (decrease) current financial payables (12,403) 362 Increase (decrease) other financial payables (1,985) (2,508) New loans 77,832 - CASH FLOW FROM FINANCING ACTIVITIES (D) 6,614 (10,820) Change in translation reserve (458) (536) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C + D) 12,782 560 Cash & cash equivalents at beginning of the year 11,627 14,038 Increase (decrease) in cash and cash equivalents 12,782 560 Cash & cash equivalents at end of the year 24,409 14,598