Incap (ICP1V) Q2 2025 earnings summary

Executive summary

• Q2 revenue was EUR 55.3 million, up 5.9% sequentially but down 4.1% year-over-year; H1 revenue reached EUR 107.5 million, down 1.4% year-over-year.

• Adjusted EBIT for Q2 was EUR 11.5 million, with H1 adjusted EBIT at EUR 12.3 million (11.5% margin), both down year-over-year.

• Currency fluctuations, especially the weak U.S. dollar and Indian rupee, significantly impacted reported results.

• Investments continued in SMT lines, X-ray equipment, PCB washing, solar power, and production upgrades across multiple facilities.

• Sustainability efforts advanced, including a climate transition plan, increased solar power capacity in India, and CSRD-compliant reporting.

Financial highlights

• Net interest-bearing debt stood at -EUR 35 million, with EUR 64.4 million in cash and low interest-bearing liabilities.

• Q2 EBIT margin approached 11%, and inventory levels slightly increased due to currency effects.

• Adjusted EBIT for Q2 was EUR 11.5 million; net profit for H1 was EUR 4.7 million, down 53.5% year-over-year.

• Financial income and expenses increased due to FX fluctuations; net profit impacted by EUR 2.5 million withholding tax on intra-group dividend.

• Cash and cash equivalents at end of June: EUR 64.4 million; cash flow from operating activities: EUR 2.2 million.

Outlook and guidance

• Full-year 2025 revenue is guided at EUR 210–230 million, with EBIT expected between EUR 23–29 million, revised downward due to FX and US policy uncertainties.

• Previous guidance anticipated higher revenue and EBIT than 2024.

• Similar business levels are expected for the second half, with no major changes in material availability anticipated.

• Guidance assumes no major unforeseen disruptions in the business environment.