EQS-News: SBO: trend reversal in bookings confirmed in Q1 despite challenging market environment

EQS-News: SBO AG / Key word(s): Quarter Results
   SBO: trend reversal in bookings confirmed in Q1 despite challenging market
   environment

   21.05.2026 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Bookings increased to MEUR 117.6, up 18.5% compared to the previous
       quarter; Book to bill ratio at 1.2
     • Sales of MEUR 98.5 at previous quarter’s level, but 23.7% below Q1
       2025
     • EBITDA at MEUR 11.4 (Q1 2025: MEUR 26.4); EBIT at MEUR 2.7 (Q1 2025:
       MEUR 18.3)
     • Strategy execution on track: Growing share of bookings from
       diversified business areas
     • Market launch of the high-performance alloy H720 for flow control
       applications in subsea and beyond
     • Net debt remains low at MEUR 82.8 (31 December 2025: MEUR 78.1)
       despite investments in diversification

    

   Vienna/Ternitz, 21 May 2026.  In the first quarter of 2026, SBO AG, listed
   on the Vienna Stock Exchange’s leading ATX index, continued to implement
   its long-term strategy. The focus was on the integration of 3T Additive
   Manufacturing Limited and the consolidation of European additive
   manufacturing activities under “SBO Additive Europe”, the growth in
   geothermal, and expansion steps in Africa and Asia. In addition, SBO
   achieved technological advances, such as the market introduction of the
   high-performance alloy H720 for flow control applications, and made
   investments in manufacturing and service capacities.

   The market environment initially showed positive momentum before the
   geopolitical crisis in the Middle East, beginning in late February, led to
   significant disruptions in the global oil and gas markets. The impact on
   logistics and supply chains caused increased uncertainty and significant
   price volatility in oil and gas. Two opposing trends shaped SBO’s business
   development: While bookings increased significantly following the low
   bookings in the second half of 2025, signaling a turnaround, sales and
   earnings continued to reflect the low bookings of the second half of 2025
   as well as deferred sales recognition due to the conflict in the Middle
   East. Accordingly, sales and earnings remained, as expected, at the level
   of Q4 2025.

   Bookings rose to MEUR 117.6 in the first quarter of 2026 (Q1 2025: MEUR
   108.3), an increase of 8.5% compared to the previous year and 18.5%
   compared to the previous quarter (Q4 2025: MEUR 99.2). The order backlog
   increased to MEUR 106.0 as of 31 March 2026 (31 December 2025: MEUR 89.5),
   a growth of 18.4%. Sales amounted to MEUR 98.5, slightly above the level
   of the previous quarter (Q4 2025: MEUR 97.1), but 23.7% below the high
   prior-year level (Q1 2025: MEUR 129.2). As in the previous quarter, this
   was a consequence of low bookings in the second half of 2025 and was in
   line with management’s expectations.

   Earnings before interest, taxes, depreciation, and amortization (EBITDA)
   amounted to MEUR 11.4 (Q1 2025: MEUR 26.4), with an EBITDA margin of 11.6%
   (Q1 2025: 20.4%). Despite the challenging market environment, a
   double-digit EBITDA margin was achieved. Profit from operations (EBIT)
   declined to MEUR 2.7 (Q1 2025: MEUR 18.3), corresponding to an EBIT margin
   of 2.8% (Q1 2025: 14.2%). The decline was mainly attributable to low
   capacity utilization in the Precision Technology division and to
   logistics-related sales deferrals in the Energy Equipment division in the
   Middle East as well as to the ramp-up of the reline and distribution
   center in the US. In addition, the weaker US Dollar negatively impacted
   the result.

   Profit before tax amounted to MEUR 0.8 (Q1 2025: MEUR 17.4), and profit
   after tax to MEUR 0.0. Earnings per share amounted to EUR 0.0 (Q1 2025:
   EUR 0.83).

   CEO Klaus Mader says: “In the first quarter of 2026, bookings improved
   significantly compared to the previous quarters. This continued the
   positive trend since the end of 2025. As expected, sales and earnings were
   similar to the previous quarter, but remained below the high prior-year
   level due to lower bookings in the second half of 2025.”

   Segments

   SBO’s business is divided into two segments: Precision Technology (PT) and
   Energy Equipment (EE). In the Precision Technology division, bookings
   increased in the first quarter of 2026, driven by higher demand for
   high-precision components and high-performance materials for the oil and
   gas industry. In addition, bookings for diversified applications in
   Additive Manufacturing (space, aerospace, defense, energy and other
   industries) and subsea flow control increased significantly. Sales
   amounted to MEUR 38.7 (Q1 2025: MEUR 57.6), significantly below the
   prior-year level due to low bookings in the second half of 2025. EBITDA
   reached MEUR 2.0 (Q1 2025: MEUR 14.1), resulting in an EBITDA margin of
   5.0% (Q1 2025: 24.5%). EBIT amounted to MEUR -1.5 (Q1 2025: MEUR 11.1),
   with a corresponding EBIT margin of -3.9% (Q1 2025: 19.3%).

   The Energy Equipment division continued the development of the previous
   quarter in the first quarter. Sales were 16.6% below the previous year at
   MEUR 59.8 (Q1 2025: MEUR 71.6). The effects of the conflict in the Middle
   East were noticeable in this division. Logistics restrictions made the
   deployment of products and services on site impossible in many cases. As a
   consequence, planned tool sales could also not be executed. In addition,
   earnings were impacted by the ramp-up of the reline and distribution
   center, whose positive contribution will be reflected in the coming
   quarters. The division’s EBITDA amounted to MEUR 9.9 (Q1 2025: MEUR 13.5).
   The EBITDA margin was 16.6% (Q1 2025: 18.8%). EBIT amounted to MEUR 4.8
   (Q1 2025: MEUR 8.5), with an EBIT margin of 8.0% (Q1 2025: 11.9%).

   Excellent Balance Sheet

   SBO continues to have an excellent balance sheet structure. Equity
   amounted to MEUR 433.2 as of 31 March 2026 (31 December 2025: MEUR 421.9),
   with the development of the USD (1 EUR = 1.1498 USD as of 31 March 2026,
   compared with 1.1750 USD as of 31 December 2025) resulting in an increase
   in the currency translation reserve of MEUR 11.3. This led to an equity
   ratio of 47.8% (31 December 2025: 47.2%).

   Net debt amounted to MEUR 82.8 (31 December 2025: MEUR 78.1), and gearing
   ratio stood at 19.1% (31 December 2025: 18.5%). Cash flow from operating
   activities amounted to MEUR 6.3 (Q1 2025: MEUR 22.7). Free cash flow stood
   at MEUR -7.1 (Q1 2025: MEUR 13.3). Cash and cash equivalents totaled MEUR
   277.4 as of the reporting date (31 December 2025: MEUR 281.5).

   Outlook

   The International Energy Agency (IEA) has revised its forecast for global
   oil demand in 2026 significantly downward due to geopolitical disruptions
   in the Middle East and the deteriorating global economy. It is clear that
   the duration of supply disruptions will largely depend on how quickly the
   military conflict allows the logistics disruptions to be resolved and the
   supply chains of the oilfield service industry in the region to normalize
   again. Considering these developments, market experts expect oil prices to
   remain above pre-conflict levels for the time being, which should support
   a viable and sustainable investment framework for the oil and gas
   industry.

   Energy security has moved to the forefront of the strategic agenda, which
   is reflected in three structural drivers that underpin demand for SBO’s
   products and services over the mid-to-long term: the replenishment of
   depleted commercial and strategic inventories, the diversification of
   supply with greater sourcing redundancy, and the accelerated development
   of local resources for long-term resilience.

   Some market experts expect a recovery in North American drilling activity
   in the coming months, since US onshore drilling in particular can be
   ramped up relatively quickly to at least partially offset supply
   shortfalls.

   SBO recorded a positive trend in bookings in the first quarter of 2026,
   driven by a visible recovery in the Precision Technology division. Despite
   this encouraging start, considerable uncertainties remain from today’s
   perspective regarding the pace of market recovery. The tense geopolitical
   market situation and the associated logistical difficulties in the Middle
   East may lead to customer restraint and sales deferrals at SBO. Therefore,
   SBO currently continues to expect a transition year with signs of recovery
   for the PT division. In the EE division, SBO sees geographic expansion
   opportunities from its broader international footprint including Asia,
   Latin America, Europe, and Sub-Saharan Africa, as well as operational
   growth opportunities, such as the relining and distribution center for
   drilling motors in the USA. Overall, SBO currently expects a recovery in
   the second half of the year.

   The market’s medium- to long-term fundamentals remain intact: The need for
   secure energy supply, the necessity of replenishing strategic and
   commercial reserves, and the increased geographic diversification of
   supply sources will provide sustained support for investment activity in
   the oil and gas industry. At the same time, SBO is capitalizing on growth
   opportunities in geothermal energy, carbon capture and storage (CCS),
   lithium and helium drilling, additive manufacturing, and flow control,
   thereby underscoring SBO’s strategic direction. SBO is strongly positioned
   in these growth markets with its product portfolio and continues to drive
   diversification.

   “The market environment remains volatile, particularly with regard to
   developments in the Middle East. With our global setup, we are well
   positioned to respond to regional shifts and to capture opportunities in
   different markets. We are managing the operating business through the
   cycle and continue to execute on our strategy. We drive the expansion of
   our additive manufacturing business in Europe and the US, while also
   further developing our activities in areas such as geothermal energy and
   carbon capture and storage. This accelerates our diversification strategy,
   creating the basis for further growth”, says CEO Klaus Mader.

   Overall, despite continued short-term uncertainties, SBO is well
   positioned to benefit from intact medium- to long-term market fundamentals
   as well as additional growth opportunities in new energy and industrial
   markets.

   SBO’s key performance indicators at a glance

                                                   UNIT 1 – 3/2026 1 – 3/2025
   Bookings                                        MEUR      117.6      108.3
   Sales                                           MEUR       98.5      129.2
   EBITDA (Earnings before interest, taxes,        MEUR       11.4       26.4
   depreciation, and amortization)
   EBITDA margin                                   %          11.6       20.4
   EBIT (Earnings before interest and taxes)       MEUR        2.7       18.3
   EBIT margin                                     %           2.8       14.2
   Profit before tax                               MEUR        0.8       17.4
   Profit after tax                                MEUR        0.0       13.0
   Cash flow from operating activities             MEUR        6.3       22.7
   Free cash flow                                  MEUR       -7.1       13.3
   Liquid funds as of 31.03.2026 / 31.12.2025      MEUR      277.4      281.5
   Net debt as of 31.03.2026 / 31.12.2025          MEUR       82.8       78.1
   Equity ratio as of 31.03.2026 / 31.12.2025      %          47.8       47.2
   Headcount as of 31.03.2026 / 31.12.2025                   1,533      1,539

   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 high-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:
   [1]www.sbo.at

   Contact:

   Judit Helenyi, Director Investor Relations, SBO AG
   phone: +43 2630 315 253

   email: [2][email protected]
              [3][email protected]

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   21.05.2026 CET/CEST This Corporate News was distributed by [4]EQS Group

   View original content: [5]EQS News

   ══════════════════════════════════════════════════════════════════════════

   Language:    English
   Company:     SBO AG
                Hauptstrasse 2
                2630 Ternitz
                Austria
   Phone:       +43 (0)2630/315110
   E-mail:      [email protected]
   Internet:    http://www.sbo.at
   ISIN:        AT0000946652
   Indices:     ATX
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 2330068


    
   End of News EQS News Service


   2330068  21.05.2026 CET/CEST

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