Sabaf (SAB) investor relations material

Executive summary

• Q1 2026 revenue declined 6.2% year-over-year to €70–70.4 million, mainly due to geopolitical tensions, postponed deliveries, and currency effects, with a 3.3% drop at constant exchange rates.

• Normalised EBITDA fell 8.7% to €9.5 million (13.6% margin), and normalised EBIT dropped 14.8% to €4.5 million (6.4% margin).

• Net profit attributable to the Group was €2.6 million, down 25.7% year-over-year.

• Sales grew in Europe (+8%) and South America (+2.5%), but declined in Turkey (-16.5%), Africa/Middle East (-49.3%), and North America (-7.6%).

• Inventory increased due to postponed deliveries and raw material stockpiling amid supply chain concerns.

Financial highlights

• Q1 2026 revenue: €69.98–70.4 million, down from €74.60 million in Q1 2025.

• Normalised EBITDA: €9.5 million (13.6% margin); Q1 2025: €10.4 million (14.0%).

• Normalised EBIT: €4.5 million (6.4% margin); Q1 2025: €5.2 million (7.0%).

• Net financial debt at 31 March 2026: €79.2–79.3 million, up from €75.2 million at year-end 2025.

• Free cash flow for the quarter: €0.6 million, down from €5.3 million in Q1 2025.

Outlook and guidance

• April and May sales and order intake improved, with Q2 sales expected to surpass both Q1 2026 and Q2 2025.

• Full-year recovery to 2025 sales levels is considered achievable, supported by new projects and ramp-ups in H2, though visibility for the second half remains limited.

• Price increases are being implemented to offset rising raw material and energy costs, with most of the impact hedged for Q2 but exposure remains for H2.

• New plants in Mexico and India are ramping up and expected to contribute significantly in 2026.