Half Year 2026 SBO AG Earnings Call Transcript
Key Points
- SBO AG (SBOEY) reported a trend reversal in sales with an 8% increase in Q2 2026, ending eight consecutive quarters of decline or stagnation.
- Bookings increased by 8.5% year-over-year and by 24% compared to the second half of 2025, with a 32% rise in backlog, indicating a strong foundation for future growth.
- Precision technology segment showed a strong recovery, with sales up 22% sequentially and EBITDA nearly quadrupling in Q2, returning to profitability.
- The company is executing its diversification strategy, with bookings beyond oil and gas approaching 10% of total, and additive manufacturing bookings accelerating significantly.
- SBO AG (SBOEY) maintains a strong balance sheet with a 48% equity ratio, high liquidity of $255 million, and low gearing of 23%, enabling continued investment in growth areas.
- The company is expanding additive manufacturing capacity with seven new 3D metal printers and a 50% increase in US space, positioning for high-growth markets like aerospace, defense, and semiconductors.
- Sales in the first half of 2026 decreased by 19.3% year-over-year, reflecting lower bookings from 2025 and the impact of the Middle East conflict.
- The Middle East conflict has caused significant sales deferrals in energy equipment, with low double-digit million euros in shipments delayed in H1 2026.
- EBITDA and EBIT declined due to lower capacity utilization, unfavorable product mix, and the ramp-up of the US reline and distribution center, impacting profitability.
- Energy equipment profitability decreased in Q2 due to the Middle East conflict, unfavorable product mix, and foreign exchange headwinds from a weaker US dollar.
- The outlook remains uncertain due to the ongoing Middle East conflict, which could delay recovery and product qualifications, affecting the timing and pace of the upcycle.
- Operating cash flow decreased to $11.2 million due to lower profits and increased working capital, which, while indicating ramp-up, pressures free cash flow.
Ladies and gentlemen, good morning and good afternoon, depending where you are, and welcome to SBO's conference call for the results of the first half year of 2026. My name is Judith Heleny, responsible for IR and I would like to thank you for joining us today. We appreciate your interest in SBO. Before we begin, let me briefly cover a few organizational topics.
This conference will be recorded and made available to the public. The presentation will be held in listen-only mode, followed by a Q&A session. Please note our disclaimer, which you can find at the beginning of the presentation. And today's presentation will be given by SPU's Executive Board. This is Klaus Mater CEO and Campbell McPherson CEO. With that, we are ready to start. Klaus, please go ahead. The floor is yours.
Thank you, Judith, for the kind, nice introduction. Ladies and gentlemen, welcome also in the name of the Executive Board. I'm Klaus Mader, and as usual, I'm doing the call together with Campbell
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