Märkte & Kurse

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Original-Research: Somec S.p.A. - from GBC AG

20.04.2026 / 10:30 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of GBC AG to Somec S.p.A.

     Company Name:               Somec S.p.A.
     ISIN:                       IT0005329815

     Reason for the research:    Research study (Note)
     Recommendation:             BUY
     Target price:               22.70 EUR
     Last rating change:
     Analyst:                    Marcel Goldmann, Cosmin Filker

FY 2025 concluded with strong improvements in profitability and cash flow;
high order book opens up growth potential

Revenue trend FY 2025

On 25 March 2026, the Somec Group published its preliminary financial
results for the 2025 financial year. According to these figures, the
engineering company saw a reduction in consolidated turnover of 3.3% to EUR
370.02 million (PY: EUR 382.82 million), primarily due to adverse exchange
rate effects and an increased focus on higher-margin projects. On a constant
exchange rate basis, the reduction in revenue was 2.1%.

In terms of revenue composition, the majority of Group revenue
(approximately 59.4%) was attributable to the core division "Horizons". In
this business segment, a significant decline in revenue of 8.0% to EUR 219.8
million (PY: EUR 239.0 million) was recorded, primarily due to negative
exchange rate effects (revenue-reducing effect: approximately EUR 4.0 million)
and delays in the completion of glass façade projects in the USA and Europe.
In addition, the increased strategic focus on higher-margin glass façade
projects with particularly high added value also had a negative impact on
revenue performance.

In contrast, the second-largest segment, "Mestieri", performed differently,
with a significant increase in revenue of 6.4% to EUR 95.3 million (PY: EUR 89.6
million). This growth was driven by significant revenue contributions from
marine interior projects and increasing synergies between the three business
divisions. According to the company, the large, prestigious contracts
secured in recent months have confirmed the management's successful approach
to the "Mestieri" division, which has also been driven by increased
integration of the business unit into the Group.

Even in the "Talenta" segment, the smallest in terms of volume, a
significant increase in revenue of 6.1% to EUR 62.5 million (PY: EUR 58.9
million) was achieved. The growth in revenue was driven by an increase in
project volume in the kitchens and catering areas of the shipbuilding
sector. The expansion in maritime revenue was supported by a stronger
presence in foreign shipyards, thereby consolidating the Group's market
position among the industry leaders in this sector.

The Somec Group's order situation has also developed positively. The company
was thus able to significantly expand its order book at the end of the past
financial year to EUR 771.0 million (31 December 2024: EUR 744.0 million)
compared with the same date the previous year. Furthermore, the engineering
company has already secured orders with a total value of more than EUR 95.0
million beyond the balance sheet date of 31 December 2025.

Our consolidated revenue estimate was therefore missed (GBCe revenue: EUR
387.76 million), primarily due to the "Horizons" core segment performing
significantly weaker than expected (particularly with regard to top-line
performance in the final quarter).

Earnings performance in the 2025 financial year

In terms of earnings, the Somec Group was able to achieve significant
improvements in earnings and, consequently, profitability across all profit
levels, despite the decline in turnover, primarily thanks to an increased
focus on higher-margin projects. Operating profit (EBITDA) rose
significantly by 12.7% to EUR 33.32 million (PY: EUR 29.58 million). At the same
time, the EBITDA margin improved significantly to 9.0% (PY: 7.7%). The rise
in margins reflects the multi-year management strategy with its increased
focus on selected high-margin contracts, a (better) balance in the revenue
mix and greater cost efficiencies.

Adjusted for non-recurring items (e.g. from restructuring or one-off
effects), adjusted EBITDA (Adj. EBITDA) of 14.0% to EUR 34.31 million (PY: EUR
30.09 million) was achieved. The adjusted EBITDA margin (Adj. EBITDA margin)
also increased significantly to 9.3% (PY: 7.9%).

In terms of the breakdown of earnings, the majority of consolidated EBITDA
(approximately 61.0% of consolidated EBITDA) was attributable to the core
business segment "Horizons", with the "Mestieri" division being the primary
driver of earnings. The "Horizons" segment suffered a significant decline in
Adj. EBITDA to EUR 20.9 million (PY: EUR 25.5 million) due to a weaker glass
façade business, which was negatively impacted in particular by raw material
tariffs on the US market. The Adj. EBITDA margin for this segment performed
significantly more robustly, declining moderately to 9.5% (PY: 10.7%) and
thus remaining at a margin level close to double digits.

In stark contrast to this, the "Mestieri" segment performed strongly, with a
sharp rise in Adj. EBITDA to EUR 8.3 million (PY: EUR 0.3 million) and a dynamic
improvement in the Adj. EBITDA margin to 8.8% (PY: 0.4%). This enormous
improvement in key figures is primarily attributable to a strong performance
in the area of ship interior projects, which has also benefited
significantly from reorganisation and reintegration measures (including
management restructuring and improvements to project management) implemented
within the segment in recent years.

The "Talenta" division also performed well, with a significant 19.0%
increase in Adj. EBITDA to EUR 5.0 million (PY: EUR 4.2 million), resulting in
an improved Adj. EBITDA margin of 8.0% compared with the previous year (PY:
7.2%). The significant increase in earnings is based on a strong performance
in maritime projects in the ship galley sector.

The positive earnings trend is also reflected in a significant improvement
in cash flow from operating activities. As a result of the further
significant margin improvement and the markedly positive effects of working
capital optimisation measures, operating cash flow at the end of the past
financial year increased significantly year-on-year to EUR 37.60 million (31
December 2024: EUR 27.44 million).

Thanks to strong cash generation, net debt (Net Financial Position / NFP)
and the debt ratio (Leverage NFP / EBITDA) improved significantly to EUR 36.5
million (PY: EUR 58.6 million) and 1.06x (PY: 1.95x) respectively. By the end
of the current financial year, the engineering company is even forecasting a
further improvement in leverage to below 1.0x.

The Somec Group has thus fulfilled its qualitative guidance regarding a
significant improvement in operating margins and a reduction in the debt
ratio (lower leverage). Our EBITDA forecast (GBCe: EUR 33.17 million) was also
achieved.

Taking into account depreciation, financing and tax effects, a significantly
improved consolidated net profit (after minority interests) of EUR 4.82
million (PY: EUR -3.30 million).

Forecasts and model assumptions

With the recent publication of its preliminary financial results, the Somec
Group has not provided a detailed outlook for the current financial year
2026. Nevertheless, during the last conference call, Somec's management
expressed optimism that the company is likely to return to a growth
trajectory in the current financial year, thanks to its currently strong
order book.

In view of the revenue performance in the past financial year falling short
of our expectations and the increasingly challenging environment (e.g. Iran
conflict, tariff burdens, oil price shock, etc.) for the company, we have
revised our previous revenue estimates downwards. For the current financial
years 2026 and 2027, we now forecast consolidated revenue of EUR 379.94
million (previously: EUR 401.23 million) and EUR 389.87 million (previously: EUR
419.83 million) respectively. With regard to the following year, 2028, which
we have included in our detailed forecast period for the first time, we
expect revenue of EUR 399.73 million.

In view of the recent strong improvement in margins and cash flow, which was
in line with our expectations, we have only slightly reduced our previous
earnings estimates. For the financial years 2026 and 2027, we now anticipate

EBITDA of EUR 36.25 million (previously: EUR 36.53 million) and EUR 38.13 million

(previously: EUR 39.79 million) respectively. For the subsequent financial
year 2028, we anticipate a further increase in EBITDA to EUR 40.53 million.
Accordingly, in line with the expected growth, the EBITDA margin, which was
most recently 9.0%, should continue to improve gradually to a forecast 10.1%
in the 2028 financial year.

Against the backdrop of a strong order book at the end of the 2025 financial
year amounting to EUR 771.0 million and the additional orders secured so far
this year totalling almost EUR 100.0 million, Somec should succeed in
returning to a growth trajectory in the current financial year. The Group's
maritime business across the various divisions and the still relatively new
"Mestieri" growth project are expected to continue to act as drivers of
growth in the short and medium term. The "Mestieri" division has recently
gained significant momentum and should be able to continue its expansion,
particularly through its increased focus on the promising "luxury
hospitality" segment (i.e. luxury hotels, resorts, boutiques, etc.).

Based on our revised forecasts, we have calculated a new target price of EUR
22.70 (previously: EUR 23.35). Our slight reduction in the target price stems
from our increase in the cost of capital following the rise in the risk-free
interest rate (from 2.5% to the current 3.0%). The inclusion of the 2028
financial year in our detailed forecasting period for the first time had a
positive impact on the price target, leading to a higher baseline for
forecasts in subsequent financial years. With regard to the current share
price level, we continue to assign a "BUY" rating and see significant upside
potential in the Somec share.



You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=476d1a6c5c717c446e7b8dfe6c28facb

Contact for questions:
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de

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Beim oben analysierten Unternehmen ist folgender möglicher
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Date (time) of completion: 17/04/2026 (17:40)
Date (time) of first distribution: 20/04/2026 (10:30)

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2310806 20.04.2026 CET/CEST

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