This article first appeared on GuruFocus .
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Revenue:Group sales declined 18% year on year to EUR455 million.
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Precision Technology Sales:Reduced to EUR189 million, down over 33% year on year.
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Energy Equipment Sales:EUR265.8 million, down 3.4% year on year; adjusted for currency effects, sales were EUR278 million.
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EBITDA:EUR71 million, down from EUR101.9 million in the previous year.
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EBITDA Margin:Decreased from 18.2% to 15.6%.
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EBIT:EUR38.5 million, with an EBIT margin of 8.5%.
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Net Income:Earnings per share at EUR1.50.
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Dividend Proposal:EUR0.75 per share, a payout ratio of 50% of net income.
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Operating Cash Flow:EUR72.4 million.
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Free Cash Flow:EUR25.5 million; adjusted for M&A, EUR34.4 million.
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Equity Ratio:47% with equity at EUR422 million.
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Net Debt:EUR78 million, with a gearing ratio of 18.5%.
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Bookings:EUR406.3 million, down 16% year on year.
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Headcount Changes:Precision Technology reduced by 11%, Energy Equipment increased by 5%.
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Release Date: March 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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SBO AG ( WBO:SBO ) maintained a solid EBITDA margin of 15.6% despite challenging market conditions.
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The energy equipment division showed resilience with a 21% year-on-year increase in EBITDA, driven by market share gains in the US and geographic expansion in the Middle East.
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The company generated a positive operating cash flow of EUR72.4 million, supported by a reduction in working capital.
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SBO AG ( WBO:SBO ) is actively pursuing diversification into new industries such as geothermal, carbon capture, and additive manufacturing, which are expected to offer attractive growth rates.
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The company maintained a strong balance sheet with an equity ratio of 47% and a high level of liquid funds at EUR282 million.
Negative Points
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Group sales declined by 18% year-on-year to EUR455 million, primarily due to a contraction in the precision technology division.
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The precision technology division experienced a significant 33% drop in sales, reflecting lower customer demand and reduced CapEx.
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The company faced a challenging market environment in 2025, characterized by oversupply and evolving tariff situations impacting the industry.
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The EBITDA margin in precision technology decreased from 23.5% to 16%, mainly due to lower sales and capacity utilization.
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The military conflict in the Middle East poses potential risks to employee safety, business continuity, and logistics constraints, although the direct asset exposure is limited.
Q & A Highlights
Q: What is the guidance for CapEx in 2026, and how do you see oil prices affecting activity in the US? A: Campbell Macpherson, Chief Operating Officer, stated that CapEx for 2026 is expected to be more normalized, similar to 2024 levels, but they remain flexible to increase it if market opportunities arise. Regarding oil prices, if they remain high due to prolonged Middle East disruptions, drilling activity in the US could increase.
Q: Can you provide an outlook for sales in new business areas over the medium term and expected EBITDA margins? A: Klaus Mader, CEO, mentioned that they aim to generate EUR 200 million in sales from diversification by 2030. Current diversification efforts, including geothermal applications and additive manufacturing, are generating EBITDA margins above 20%.
Q: Are there any plans for partnerships or acquisitions to support growth, and in which areas? A: Klaus Mader explained that they are looking at partnerships and acquisitions in additive manufacturing and precision manufacturing to diversify into flow control markets, including aerospace, semiconductor, and defense industries.
Q: How pronounced do you expect margin improvements to be between the first and second half of 2026? A: Klaus Mader indicated that margins are expected to improve in the second half of 2026 as higher bookings from Q4 2025 and Q1 2026 convert into sales, leading to better capacity utilization.
Q: What are the implications of the Middle East conflict on SBO's operations? A: Campbell Macpherson noted that while the situation is dynamic, the impact on SBO has been limited so far. The main concerns are employee safety and logistics constraints, but order intake and backlog remain intact.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
