EQS-News: SBO delivers solid performance with clear strategic focus despite increasing market challenges

EQS-News: SBO AG / Key word(s): 9 Month figures/Quarter Results
   SBO delivers solid performance with clear strategic focus despite
   increasing market challenges

   20.11.2025 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Sales of MEUR 358.2 (1–9/2024: MEUR 425.6) resulting from continued
       low customer spending
     • Customer investment restraint in the Precision Technology division
       weighs on earnings
     • EBITDA of MEUR 58.6 or 16.4%, supported by cost reductions and the
       positive performance of the Energy Equipment division
     • EBIT of MEUR 34.9 (1–9/2024: MEUR 51.8) with a margin of 9.7%
     • Cash flow from operating activities MEUR 55.8 (1–9/2024: MEUR 64.9) –
       high liquid funds of MEUR 281.9
     • Diversification strategy in progress: Closing of the acquisition of 3T
       Additive Manufacturing Ltd., expansion in the areas of flow control
       and geothermal energy

   In the third quarter of 2025, SBO continued to execute its long-term
   strategy despite an increasingly challenging market environment. The Group
   achieved significant progress across all four strategic pillars –
   diversification, market expansion, technology leadership and operational
   excellence. SBO strengthened its position in future-oriented technology
   fields with the acquisition of 3T Additive Manufacturing, further expanded
   its role in the growing geothermal market and took an important step into
   flow-control applications for the subsea industry with the successful
   NORSOK listing of its proprietary high-performance materials.
   Technological milestones such as the manufacturing of the one-millionth
   frac plug underline SBO´s innovation strength and core capabilities.
   Investments in new capabilities, such as the new reline and distribution
   center in Houston that will become operational in January 2026, further
   enhance operational efficiency in key markets.

   SBO thus remained on track to further strengthen the foundation for
   future, sustainable growth, while the business performance of the first
   nine months of 2025 reflected the persistently challenging market
   environment. Geopolitical uncertainties, new tariffs and a decline in
   drilling and completion activities in the U.S. led to weaker demand,
   particularly in the Precision Technology (PT) division. At the same time,
   the improving performance of the Energy Equipment (EE) division and
   increasing diversification into new technology and industrial markets
   confirmed the Group´s resilience.

   Bookings of MEUR 307.1 (1–9/2024: MEUR 372.9) are a clear sign of
   customers´ currently subdued investment sentiment. SBO´s sales of MEUR
   358.2 (1–9/2024: MEUR 425.6) were 15.8% below the high level of the
   previous year. Earnings before interest, taxes, depreciation, and
   amortization (EBITDA) amounted to MEUR 58.6 (1–9/2024: MEUR 75.8), with an
   EBITDA margin of 16.4% (1–9/2024: 17.8%). Despite targeted cost-cutting
   measures and capacity adjustments, profit from operations (EBIT) declined
   significantly to MEUR 34.9 (1–9/2024: MEUR 51.8) or 9.7% of sales
   (1–9/2024: 12.2%). The earnings performance was primarily impacted by a
   decline in sales and the resulting lower capacity utilization in the PT
   division. The measures implemented in the EE division in the previous year
   are showing a positive impact, which is reflected in significantly
   improved profitability. However, this only partially offset the decline in
   earnings in the PT division.

   Profit before tax totaled MEUR 30.5 (1–9/2024: MEUR 47.1). Profit after
   tax reached MEUR 21.6 (1–9/2024: MEUR 34.4), resulting in EUR 1.37
   earnings per share (1–9/2024: EUR 2.18).

   “The  third  quarter  demonstrated  how  strongly  the  current  market
   weakness is impacting our customers´ spending decisions.  This is
   particularly  evident in  our Precision  Technology  division. On the
   other  side,  the improved performance  of  the Energy Equipment division
   is  supporting profitability,  while  diversification into  attractive
   industries  is  also  beginning  to  deliver  first  results”, says CEO
   Klaus Mader about the business development.

   Segments

   The SBO Group´s business is divided into two segments: Precision
   Technology (PT) and Energy Equipment (EE). In the Precision Technology
   division, demand further decreased in the third quarter. The constantly
   changing global customs regulations and their inconsistent interpretations
   caused considerable uncertainty throughout the supply chain. As a result,
   customers reduced their budgets and postponed CAPEX. Sales in the first
   nine months of 2025 amounted to MEUR 150.5 (1–9/2024: MEUR 222.3). EBIT
   amounted to MEUR 17.4 (1–9/2024: MEUR 45.8), reducing the EBIT margin to
   11.6% (1–9/2024: 20.6%).

   The market environment for the Energy Equipment division was characterized
   by varying dynamics, particularly in the third quarter: A further decline
   in activity in North America contrasted with stable demand in the MENA
   region, Latin America, and Asia. Despite the market slowdown SBO generated
   sales of MEUR 207.7 in this division in the first nine months of 2025
   (1–9/2024: MEUR 203.3), representing an increase of 2.2% and even 5.5%
   foreign exchange adjusted. Profitability also improved significantly as a
   result of the operational and structural improvements implemented in 2024.
   These measures enabled SBO to partially offset the decline in earnings in
   the PT division. EBIT almost tripled to MEUR 22.2 (1–9/2024: MEUR 7.9),
   with an EBIT margin of 10.7% of sales (1–9/2024: 3.9%).

   Key Balance Sheet Figures and Cash Flow

   SBO´s balance sheet structure remains strong. As of 30 September 2025,
   equity stood at MEUR 419.0 (31 December 2024: MEUR 492.7), impacted by
   MEUR 67.7 unfavorable currency translation effects, mostly due to the
   weakening of the US dollar from 1.0389 on 31 December 2024 to 1.1741 on 30
   September 2025. This resulted in an equity ratio of 47.6% (31 December
   2024: 50.0%).

   Net debt amounted to MEUR 77.9 (31 December 2024: MEUR 56.0), while the
   gearing ratio stood at 18.6% (31 December 2024: 11.4%). Cash flow from
   operating activities amounted to MEUR 55.8 (1–9/2024: MEUR 64.9). Free
   cash flow adjusted for the MEUR 4.8 purchase price payment for 3T Additive
   Manufacturing Ltd. amounted to MEUR 29.6 (1–9/2024: MEUR 42.5). Cash and
   cash equivalents amounted to MEUR 281.9 as of the reporting date (31
   December 2024: MEUR 314.7). Adjusted for the negative exchange rate
   effects in the first three quarters of 2025, cash and cash equivalents
   would be MEUR 15.7 higher due to translation effects.

   Despite the market headwinds, the Group´s financial position remained very
   robust. SBO focused on cost control, efficiency improvements, and targeted
   investments in the implementation of its strategy to ensure efficiency,
   technological strength, and long-term growth.

   Outlook

   The market environment continues to be characterized by a high degree of
   uncertainty. The International Energy Agency (IEA) currently expects an
   oversupply of oil in 2025 and 2026 and thus subdued oil prices. In
   contrast, global gas consumption is expected to reach a historic high in
   2026 and grow by just under 2%. Geopolitical tensions and regional
   differences in demand dynamics as well as the continuous changes in
   tariffs are impacting planning and have led to limited visibility at SBO
   for the year 2026. Thanks to its technological expertise and consistent
   cost management, SBO is able to operate profitably and strengthen its
   competitive position even in a volatile and currently challenging market
   environment.

   At the same time, SBO is continuing to advance the implementation of its
   strategic goals. The expansion of the flow control business will be
   further advanced in the coming quarters: The recently achieved
   technological qualifications create the basis for SBO to position itself
   sustainably in this demanding market segment. In line with the strategy
   presented earlier in 2025, SBO will leverage its existing materials
   expertise to target new industrial applications in order to open up
   additional, high-margin business areas. In addition, geothermal energy is
   gaining increasing importance as a long-term growth driver. The market for
   high-tech equipment used in technically demanding geothermal drilling is
   still at an early stage but is developing dynamically and therefore offers
   new opportunities for SBO´s high-performance materials and precision
   components.

   3D metal printing is also rapidly evolving into a key technology of modern
   manufacturing. Due to its high design flexibility and the ability to
   efficiently produce complex structures, it is widely applied in the space,
   aerospace, defense, energy and other industries. The market for metal
   additive manufacturing services is expected to grow from around USD 1.5
   billion in 2025 to approximately USD 4.8 billion by 2030. SBO is perfectly
   positioned in this dynamic environment, not least thanks to the recent
   acquisition of 3T Additive Manufacturing Ltd. Despite short-term
   challenges, SBO is therefore on track to actively capture medium to
   long-term growth opportunities.

   CEO Klaus Mader concludes: “In  an  environment marked by uncertainty  and
   caution, SBO remains  firmly on  course.  The  task now is  to navigate
   the  current market  situation with efficiency and cost discipline in the
   short term, while at  the  same  time  we  are investing in  areas  where
   we  will  create long-term value.”

   More information in SBO´s Q3 report: [1]Quarterly and half-yearly
   publications 

   SBO´s key performance indicators at a glance
    

                                                       UNIT 1-9/2025 1-9/2024
   Sales                                               MEUR    358.2    425.6
   EBITDA (Earnings before interest, taxes,            MEUR     58.6     75.8
   depreciation, and amortization)
   EBITDA margin                                       %        16.4     17.8
   EBIT (Earnings before interest and taxes)           MEUR     34.9     51.8
   EBIT margin                                         %         9.7     12.2
   Profit before tax                                   MEUR     30.5     47.1
   Profit after tax                                    MEUR     21.6     34.4
   Cash flow from operating activities                 MEUR     55.8     64.9
   Free cash flow                                      MEUR     24.8     42.5
   Liquid funds as of 30/09/2025 / 31/12/2024          MEUR    281.9    314.7
   Net debt as of 30/09/2025 / 31/12/2024              MEUR     77.9     56.0
   Equity ratio as of 30/09/2025 / 31/12/2024          %        47.6     50.0
   Headcount as of 30/09/2025 / 31/12/2024                     1,516    1,596

   About SBO

   SBO AG is leading in the manufacture of high-alloy, non-magnetic steels,
   high-precision components and high-tech equipment for the energy sector
   and other industrial sectors. The global precision technology group,
   headquartered in Ternitz, Austria, operates worldwide at more than 20
   locations with around 1,500 employees. The group delivers cutting-edge
   technologies backed by a highly innovative product portfolio and strong
   intellectual property. In its Precision Technology division, SBO
   specializes in high-precision metal components, ranging from complex steel
   parts to additive manufacturing solutions for industries requiring maximum
   accuracy and performance. In the Energy Equipment division, SBO provides
   high-tech equipment for directional drilling and well completion including
   high-precision flow control products. Designed for extreme conditions,
   these solutions perform in high-temperature and high-pressure
   environments, serving important industries including oil and gas, energy
   and other industrial sectors. SBO is listed in the leading index ATX of
   the Vienna Stock Exchange (ISIN AT0000946652). More information:
   [2]www.sbo.at

   Contact:

   Florian Schütz, VP Strategy, Investor Relations & ESG

   Phone: +43 2630 315-150
   E-Mail: [3]investor.relations@sbo.at
               [4]media.relations@sbo.at

    

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   20.11.2025 CET/CEST This Corporate News was distributed by [5]EQS Group

   View original content: [6]EQS News

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   Language:    English
   Company:     SBO AG
                Hauptstrasse 2
                2630 Ternitz
                Austria
   Phone:       +43 (0)2630/315110
   E-mail:      info@sbo.at
   Internet:    http://www.sbo.at
   ISIN:        AT0000946652
   Indices:     ATX
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 2231974


    
   End of News EQS News Service


   2231974  20.11.2025 CET/CEST

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