Schoeller-Bleckmann Oilfield Equipment (SBO) H1 2025 earnings summary

Executive summary

• Strategy execution focused on diversification, technology leadership, market expansion, and operational efficiency, with brand repositioning completed and new innovations launched in downhole drilling tools.

• Completed legal name change to SBO AG and expanded sites in Saudi Arabia and Vietnam.

• Diversified into geothermal, carbon capture, and additive manufacturing, including the acquisition of 3T Additive Manufacturing Ltd. in the UK.

• Market environment remains complex due to global trade tensions, tariff uncertainty, commodity price volatility, and OPEC+ oversupply concerns.

Financial highlights

• Group sales declined 12% year-on-year to EUR 253.6 million, mainly due to a 31% drop in precision technology sales, partially offset by an 11% increase in energy equipment sales.

• EBITDA fell to EUR 44.5 million (margin 17.5%), EBIT was EUR 28.6 million (margin 11.3%), and profit after tax was EUR 18.5 million.

• Free cash flow was EUR 18.4 million, impacted by higher CapEx and timing of receivables; cash position at EUR 279 million.

• Equity ratio at 47%, with net debt increased to EUR 82.3 million and gearing ratio at 19.7%.

• Order backlog closed at EUR 103.3 million, down from EUR 141.8 million at year end; bookings at EUR 216.9 million.

Outlook and guidance

• Market environment remains complex with ongoing global trade tensions, volatile commodity prices, and subdued customer demand expected to persist through 2025.

• Precision technology division to focus on cost discipline and capacity adjustments; energy equipment expected to continue outperforming the market despite softness in U.S. drilling.

• Global E&P spending forecast to decline by 2% in 2025, with a US drop of 5%; recovery expected from mid-2026.

• Strategic focus on technological innovation, diversification, and expansion in energy transition sectors.