Schoeller-Bleckmann Oilfield Equipment (SBO) Q3 2025 earnings summary

Executive summary

• Advanced long-term diversification strategy with the acquisition of 3T Additive Manufacturing and expansion into high-tech and flow control markets, despite a challenging market environment.

• Opened new manufacturing facilities in the Middle East and Houston, enhancing operational efficiency and market positioning.

• Achieved record performance in downhole drilling motors and reached the milestone of one million composite frac plugs manufactured.

• Continued focus on technology leadership and operational excellence to support growth in high-tech sectors.

Financial highlights

• Group sales for the first nine months declined 15.8% year-over-year to €358.2M, mainly due to contraction in precision technology and FX impacts.

• EBITDA decreased to €58.6M (margin 16.4%) from €75.8M, and EBIT dropped to €34.9M (margin 9.7%) from €51.8M.

• Profit after tax was €21.6M, with EPS at €1.37, both significantly lower year-over-year.

• Free cash flow for the first nine months was €24.8M, or €29.6M adjusted for M&A; operating cash flow was €55.8M.

• Equity ratio at 47.6%, net debt at €77.9M, and gearing at 18.6%, reflecting a strong balance sheet.

Outlook and guidance

• Short-term outlook remains uncertain due to oil oversupply, tariff uncertainties, and cautious customer spending, especially in precision technology.

• Energy equipment expected to continue good performance into 2025; improvement in precision technology anticipated in the second half of 2026.

• Medium- to long-term fundamentals remain strong, with global oil and gas demand projected to rise and significant growth expected in geothermal and additive manufacturing markets.