we receive e we publish the following Press release.
The Board of Directors of Eurotech SpA, a multinational company that designs, develops, and provides Edge Computing and Internet of Things (IoT) solutions, integrating software, hardware, cybersecurity, and services, listed on Euronext Star Milan, today reviewed and approved the Half-Year Financial Report as of June 30, 2026.
Massimo Milan, CEO of EurotechSaid: “The first half of 2026 marks progress in the Group's profitability recovery compared to the first half of last year: revenues grew by double digits, EBITDA improved by €3,6 million, and the second quarter reached breakeven, while the capital and financial structure was strengthened.
The results reflect volume growth and the benefits of structural actions undertaken in terms of costs and operational efficiency. We remain focused on converting the order backlog into revenue, maintaining executive discipline, and advancing the strategic initiatives outlined in the Eurotech neXt Industrial Plan.
Despite a still challenging market context and limited visibility, we want to continue to strengthen our competitiveness, execution capacity, and financial solidity."
Economic trend of the period
Consolidated revenues Revenues for the first half of 2026 amounted to €25,2 million, compared to €21,5 million in the first half of 2025 (+17,1%). At constant exchange rates, growth was 23,3%. This performance reflects the increase in orders recorded in the second half of 2025 and the contribution of a significant order acquired in the US market. The Japanese market contributed most to this growth; the European region is improving but continues to be impacted by geopolitical uncertainty and the weakness of the industrial and automotive sectors, particularly in Germany.
With reference to the distribution of revenues by geographical area, determined on the basis of customer location, the following is noted in the first half of 2026:
- European Union: 50,7% of revenues, compared to 49,0% in the first half of 2025; the region remains the Group's main market, with growth of 21,1%, and accounts for the largest share of Edge AIoT revenues;
- United States: 9,9% of revenues, compared to 6,1% in the first half of 2025, with growth of 91,0%, also supported by the contribution of a significant order;
- Japan: 34,2% of revenues, compared to 36,7% in the first half of 2025; revenues increased by 9,1%, mainly thanks to increased orders from some long-standing customers, which provides good visibility into year-end revenues;
- Other areas: 5,3% of revenues, compared to 8,2% in the first half of 2025, with a decrease of 25,2%, equal to €0,4 million in absolute value.
By type, product revenues increased by 22,8%, while service revenues decreased by 8,6% compared to the first half of 2025 (-5,1% at constant exchange rates). The decline is attributable to lower recurring software revenues and fewer professional services related to the initial phases of new IoT projects, partially offset by increased customization and engineering activities on embedded projects, especially in Japan.
Revenues in the first quarter of 2026 amounted to €10,7 million; in the second quarter, they reached €14,5 million, up 9,4% compared to the second quarter of 2025 (+14,9% at constant exchange rates).
Gross margin was 47,8% of revenue, compared to 49,3% in the first half of 2025.
The percentage reduction is primarily attributable to the increased cost of specific components, particularly "memory," which is characterized by a market situation characterized by limited availability and the resulting price increase. These higher costs are passed on to customers, resulting in lower margins than expected for the finished product, thus diluting overall profitability. Net of this effect, the percentage margin would be essentially in line with that recorded in recent quarters, given an overall stable product mix.
Adjusted EBITDA At June 30, 2026, the adjusted EBITDA loss was €1,4 million, compared to €4,0 million in the same period of 2025, an improvement of €2,6 million. The improvement in adjusted EBITDA reflects both volume growth and the effects of efficiency and cost containment measures. Non-recurring costs, recognized in the income statement in the first half of 2026, relate to certain staff reductions and costs related to growth consulting.
Including non-recurring costs, EBITDA The loss for the first half of 2026 was €1,7 million, compared to €5,3 million in the first half of 2025, an improvement of 67,4%. Adjusted EBITDA was positive in the second quarter of 2026, and EBITDA reached breakeven, a step consistent with the path to sustainable profitability recovery.
EBIT, due to amortization and write-downs charged to the income statement in the first half of 2026 for a total of Euro 2,4 million, is equal to Euro -4,1 million, compared to Euro -7,7 million in the first half of 2025.
Net result for the period, equal to -4,3 million Euros, reduces the loss for the half-year by 42,9% compared to -7,6 million Euros in the same period of 2025.
Financial position for the period
The Group presents a 30 June 2026 financial debt Net debt of €7,2 million, compared to €16,8 million at December 31, 2025, an improvement of €9,6 million. The reduction in net financial debt is primarily attributable to the capital increase completed in February 2026 and careful financial management, both in terms of debt and technology investments. The capital strengthening completed in the first half of 2026 has allowed the Group to improve its financial structure to support the execution of the Business Plan.
Il net working capital As of June 30, 2026, it amounted to €8,3 million, compared to €9,7 million as of December 31, 2025, a decrease of approximately €1,5 million. The change is primarily due to the dynamics of trade receivables collection flows, typical of business trends, partially offset by higher inventories, established to ensure the availability of critical components – particularly memory – in view of expected cost increases.
Il net assets amounts to Euro 59,2 million, compared to Euro 52,7 million at 31 December 2025.
Significant events occurring after June 30, 2026
There were no significant events after the end of the half-year period and up to September 11, 2026.
Foreseeable evolution of management
The strong order backlog at the end of the first half of 2026, combined with commercial opportunities already identified with customers, allows the Group to anticipate revenue growth in the second half of the year, with a greater concentration expected in the final quarter of the year compared to the first half of 2026 and the third quarter of 2027. This momentum should be supported by both the legacy business and Edge AIoT solutions, consistent with the development guidelines outlined in the 2026-2030 Business Plan. However, the market environment continues to be characterized by limited visibility over the medium to long term. Based on currently available information, the Group confirms its objective of achieving positive EBITDA in fiscal 2026.
However, some external factors remain that require careful monitoring. In particular, the price increase of some electronic components, particularly memory and storage systems, continues to be significant, a trend that could continue well into 2027.
This trend, if confirmed in the coming months, will necessarily require the transfer of these increases to final sales prices, with a dilutive effect on the Group's gross profit already in the coming months. The Group also maintains a close focus on the evolution of the international geopolitical scenario, the ongoing conflicts in Ukraine and the Middle East, and the evolution of US tariff policies, with particular reference to the potential effects on the countries in which the Group and its customers operate. These factors could have repercussions on supply chains, the availability and cost of components, and the timing of realizing commercial opportunities.
On the organizational front, after approximately 18 months in which management focused primarily on adjusting the operating cost structure to revenue trends and improving efficiency, the Group is entering a new phase. In line with the investments and objectives set out in the Business Plan, a progressive strengthening of technological and commercial capabilities is underway, aimed at providing Eurotech with the resources necessary to support the development path envisaged for the coming years.
The Group will continue to execute the strategic directions of the 2026-2030 Industrial Plan, confirming its focus on the already identified verticals, concentrating resources on those sectors characterized by greater scale and growth potential and on applications in complex, mission-critical environments that require high reliability. In these areas, Eurotech's expertise in rugged solutions and the integration of Information Technology and Operational Technology are distinctive elements.
The strategy will continue to pursue organic growth opportunities but also, where reasonably possible, external growth, leveraging the key structural trends in the reference markets: the spread of Edge AI and the progressive shift of processing capabilities from the cloud to the edge, the evolution of energy infrastructures towards more intelligent and distributed models, and the increasing automation of industrial processes.
