EQS-News: New upcycle: SBO bookings increase in H1 despite Middle East conflict

EQS-News: SBO AG / Key word(s): Half Year Results
   New upcycle: SBO bookings increase in H1 despite Middle East conflict

   20.08.2026 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Bookings increased to MEUR 235.3 in H1 (+8.5%); the trend from Q1
       continued in Q2 despite the ongoing Middle East conflict
     • Order backlog continues to grow to MEUR 117.9, up 31.7% since the
       beginning of the year
     • Sales gaining momentum sequentially: after eight quarters of decline
       or stagnation, sales increased 7.7% from Q1 to Q2, driven by the
       recovery in the Precision Technology division
     • EBITDA margin remained with 11.8% in double digits despite the
       challenging market environment
     • Diversification accelerating: growth in additive manufacturing and
       rising demand in geothermal energy and the subsea flow control market

    
   Vienna/Ternitz, 20 August 2026. SBO AG entered a new upcycle in the first
   half of 2026. Bookings increased to MEUR 235.3 (1-6/2025: MEUR 216.9), up
   8.5% year-on-year, with the positive trend from the first quarter carrying
   into the second quarter despite the ongoing Middle East conflict (Q2 2026:
   MEUR 117.7; Q1 2026: MEUR 117.6). The order backlog continued to increase,
   reaching MEUR 117.9 as of 30 June 2026 (31 December 2025: MEUR 89.5), an
   improvement of 31.7%. The share of bookings from new business areas
   outside the oil and gas industry is approaching the 10% mark – a clear
   sign that SBO’s diversification strategy is delivering measurable results,
   driven by geothermal energy, 3D metal printing and new high-performance
   materials.

   CEO Klaus Mader comments on this development: “A new upcycle in our core
   business is beginning. Our rising bookings show that we have passed the
   trough. Despite the Middle East conflict and volatile oil prices, the
   improved bookings from the first quarter continued.”

    
   Sales and earnings for H1 2026 were below the prior year, reflecting the
   expected time lag of a few quarters following the low bookings of 2025 and
   the operational impact of the Middle East conflict. Sales reached MEUR
   204.7 (1-6/2025: MEUR 253.6), burdened by FX-effects. Adjusted for these
   currency translation effects, sales declined by 14.7% in H1 2026. A
   sequential improvement was already visible: after eight quarters of
   declining or, more recently, stagnating sales, in the second quarter sales
   clearly increased by 7.7% quarter-on-quarter (Q2 2026: MEUR 106.1; Q1
   2026: MEUR 98.5).

   Earnings before interest, taxes, depreciation, and amortization (EBITDA)
   amounted to MEUR 24.2 in the first half of the year (1-6/2025: MEUR 44.5)
   – a sales-related decline resulting from the lower bookings recorded in
   the prior year. Despite the challenging market environment, the EBITDA
   margin remained with 11.8% in double digits (1-6/2025: 17.5%). Profit from
   operations (EBIT) amounted to MEUR 6.9 in the first half of 2026
   (1-6/2025: MEUR 28.6), with an EBIT margin of 3.4% (1-6/2025: 11.3%). On a
   sequential basis, however, a clear improvement was recorded: EBITDA
   improved by 11.3% (Q2 2026: MEUR 12.7; Q1 2026: MEUR 11.4), while EBIT
   even increased by 52.2% (Q2 2026: MEUR 4.2; Q1 2026: MEUR 2.7).

   Profit before tax amounted to MEUR 3.1 (1-6/2025: MEUR 26.0), and profit
   after tax to MEUR 0.2 (1-6/2025: MEUR 18.5). Earnings per share amounted
   to EUR 0.01 (1-6/2025: EUR 1.18).

   Segments: PT recovering, EE navigating headwinds

   At the segment level, the picture was mixed: while the Precision
   Technology (PT) division’s earnings improved significantly from Q1 to Q2
   on the back of higher sales and improved capacity utilization,
   profitability in the Energy Equipment (EE) division declined over the same
   period, due to the product mix, ramp-up costs of the reline and
   distribution center, and the negative impact of the conflict in the Middle
   East.

   Sales in the Precision Technology division amounted to MEUR 85.9 in the
   first half of 2026 (1-6/2025: MEUR 107.6). At the quarterly level, the
   continued positive trend in bookings was already reflected in sales: the
   21.8% increase from Q1 to Q2 marks the first quarterly increase after
   eight consecutive quarters of decline. EBITDA came in at MEUR 9.6
   (1-6/2025: MEUR 22.4), corresponding to an EBITDA margin of 11.1%
   (1-6/2025: 20.8%). EBIT amounted to MEUR 2.4 (1-6/2025: MEUR 16.4), with
   an EBIT margin of 2.8% (1-6/2025: 15.3%).

   In the Energy Equipment division, sales were 18.7% below the prior year at
   MEUR 118.7 (1-6/2025: MEUR 146.0). Sales were impacted by logistics
   restrictions resulting from the Middle East conflict, which in many cases
   prevented the deployment of products and services on site. In addition,
   earnings were impacted by an unfavorable product mix and ramp-up costs for
   the reline and distribution center in the US. EBITDA amounted to MEUR 15.8
   (1-6/2025: MEUR 25.6), with an EBITDA margin of 13.3% (1-6/2025: 17.6%).
   EBIT was MEUR 5.9 (1-6/2025: MEUR 16.0), resulting in an EBIT margin of
   5.0% (1-6/2025: 10.9%).

   Strong balance sheet underpins strategic flexibility

   SBO continues to have an excellent balance sheet structure. After a
   dividend payment of MEUR 11.8 in the second quarter equity amounted to
   MEUR 427.0 as of 30 June 2026 (31 December 2025: MEUR 421.9). This led to
   an equity ratio of 47.5% (31 December 2025: 47.2%). Cash and cash
   equivalents totaled MEUR 254.8 as of the reporting date (31 December 2025:
   MEUR 281.5). Net debt stood at MEUR 100.1 (31 December 2025: MEUR 78.1),
   mainly caused by the dividend payment and high CAPEX in the first half of
   2026 as well as an increase in working capital due to higher activity in
   the PT division. The gearing ratio was 23.4% (31 December 2025: 18.5%).

   Cash flow from operating activities amounted to MEUR 11.2 (1-6/2025: MEUR
   37.1). Free cash flow was MEUR -13.3 (1-6/2025: MEUR 18.4). The increase
   in the cash flow from investing activities to MEUR -24.5 after MEUR -18.7
   in 1-6/2025 was primarily driven by strategic diversification, in
   particular the expansion of 3D metal printing capacity (MEUR -8.6). SBO’s
   high cash position and financial stability provide a solid foundation for
   financing the upcycle and the execution of its growth strategy.

   Recovery ahead: structural drivers will support demand

   Energy security has moved to the forefront of the strategic agenda, which
   translates into three structural drivers that will underpin demand for
   SBO’s products and services: 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. In addition, spending on rebuilding production
   capacity in the Middle East is expected to rise. Furthermore, first
   customers are already talking about the start of a new upcycle. This
   higher level of activity is already becoming visible in the Precision
   Technology division.

   Overall, SBO currently expects further recovery in the second half of the
   year. A gradual normalization of activity and logistics in the Middle East
   would provide additional upside potential, once deferred customer programs
   are resumed. 

   In parallel, SBO is accelerating its diversification across several
   high-growth markets. In additive manufacturing, SBO is adding seven new 3D
   metal printers in the US and the UK, with all becoming operational by
   September 2026, and is expanding its US additive manufacturing space by
   50% to over 2,100 m². This is positioning SBO to capture the forecasted
   market growth from USD 1.5 billion in 2025 to USD 4.8 billion by 2030.
   Customer demand from space, aerospace, defense, semiconductors and energy
   is growing.

   In geothermal energy, SBO’s drilling motors were recently successfully
   deployed in a program targeting bottom-hole temperatures of 300–400°C,
   confirming the transferability of SBO’s drilling technologies to this
   fast-growing market. In flow control, the high-performance alloy H720 is
   gaining commercial traction: following full NORSOK approval, an
   accelerated material qualification program is underway with a leading
   international subsea customer for critical applications in subsea flow
   control systems.

   CEO Klaus Mader concludes: “Energy security is gaining importance, and
   inventories as well as strategic reserves will be rebuilt. These
   structural drivers will continue to support demand. At the same time, the
   contribution from our strategic diversification is growing. The share of
   bookings from new business areas outside the oil and gas industry is
   approaching the 10% mark. This is driven by geothermal energy, 3D metal
   printing and new high-performance materials.”

   SBO’s key performance indicators at a glance

                                                       UNIT 1–6/2026 1–6/2025
   Bookings                                            MEUR    235.3    216.9
   Sales                                               MEUR    204.7    253.6
   EBITDA (Earnings before interest, taxes,            MEUR     24.2     44.5
   depreciation, and amortization)
   EBITDA margin                                       %        11.8     17.5
   EBIT (Earnings before interest and taxes)           MEUR      6.9     28.6
   EBIT margin                                         %         3.4     11.3
   Profit before tax                                   MEUR      3.1     26.0
   Profit after tax                                    MEUR      0.2     18.5
   Cash flow from operating activities                 MEUR     11.2     37.1
   Free cash flow                                      MEUR    -13.3     18.4
   Liquid funds as of 30.06.2026 / 31.12.2025          MEUR    254.8    281.5
   Net debt as of 30.06.2026 / 31.12.2025              MEUR    100.1     78.1
   Equity ratio as of 30.06.2026 / 31.12.2025          %        47.5     47.2
   Headcount as of 30.06.2026 / 31.12.2025                     1,572    1,539

   Downloads:

   Half-year report:
   [1]https://www.sbo.at/en/investor-relations/reports-publications

   SBO logo: [2]https://www.sbo.at/en/media/sbo-brand

   Executive Board photos: [3]https://www.sbo.at/en/media/board-photos

   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 1,600 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:
   [4]www.sbo.at

   Contact:

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

   email: [5][email protected]
              [6][email protected]

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   20.08.2026 CET/CEST This Corporate News was distributed by [7]EQS Group

   View original content: [8]EQS News

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   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)
   LEI Code:    549300ZD9ED8GSG3JW36
   EQS News ID: 2384228


    
   End of News EQS News Service


   2384228  20.08.2026 CET/CEST

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