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Research study (Note) english – Somec S.p.A. – 08.10.2025

Business development hY1 2025

On 25 September 2025, the Somec Group published its half-year figures for the current financial year 2025. The performance in the first six months was primarily characterised by moderate growth and a strong improvement in profitability at all earnings levels. Thanks to continued strong momentum in the maritime business and robust refitting business (modernisation of older ships, etc.), the Somec Group achieved moderate revenue growth of 3.9% to € 192.7 million in the first half of the year (HY1 2024: € 185.6 million).

In terms of earnings, the company achieved a disproportionately high increase in EBITDA of 24.1% to € 15.8 million (HY1 2024: € 12.8 million) due to the onset of economies of scale and a favourable sales mix (higher share of high-margin refitting business). This resulted in a significant improvement in the EBITDA margin to 8.2% (HY1 2024: 6.9%). The improvement in operating earnings was also driven by positive earnings effects from the organisational optimisation measures implemented over the past 18 months. A significant improvement was also achieved at the net result level (after minorities) to € 1.63 million (HY1 2024: € -2.14 million).

In terms of the composition of sales, the main business segment "Horizons" accounted for the lion's share (60.0%) of Group sales. This business segment generated revenue of € 115.5 million in the first half of the year, almost matching the high level of the previous year (first half of 2024: €119.8 million). Project postponements, particularly in the civil US glass business, had an inhibiting effect on growth and prevented a better revenue trend. Nonetheless, a more favourable sales mix (higher share of high-margin refitting business) and stronger cost efficiency effects led to a significant increase in EBITDA to € 10.9 million (H1 2024: € 9.2 million) in this division. Accordingly, the EBITDA margin also improved significantly to 9.4% (1st half of 2024: 7.7%).

By contrast, the second-largest business segment in terms of volume, "Mestieri", recorded dynamic segment sales growth of 25.3% to € 48.8 million (HY1 2024: € 38.9 million), primarily thanks to increased maritime projects (particularly in the construction of new cruise ships). At the same time, EBITDA grew disproportionately to € 2.9 million (HY1 2024: € 1.4 million) due to the acquisition and implementation of higher-margin projects and the positive effects of restructuring and reorganisation measures, which was also reflected in a dynamic increase in the EBITDA margin to 5.8% (HY1 2024: 3.5%).

The "Talenta" division also achieved segment sales growth of 5.7% to € 28.4 million (HY1 2024: € 26.9 million) due to increasing orders in the area of professional kitchen systems for the shipping industry and a slight increase in sales of professional kitchen products (primarily industrial pizza ovens). Due to restructuring costs incurred in the production area (bundling of production facilities), segment EBITDA was almost on a par with the previous year at € 2.1 million (HY1 2024: € 2.2 million). This resulted in a slightly lower EBITDA margin of 7.4% (HY1 2024: 8.0%).

With regard to the order situation, the Somec Group's total order backlog (backlog awarded including option contracts), which primarily includes orders in the core segment "Horizons", amounted to € 678.0 million as at 30 June 2025 and was therefore only slightly below the previous year-end figure (31 December 2024: € 744.0 million). However, it should be noted that, thanks to several large orders already announced in July, the total order backlog (backlog awarded including option contracts) as of 15 July 2025 rose significantly to € 769.0 million, thereby significantly exceeding both of these reference values. This extensive order backlog even extends into 2033 and provides a high level of visibility and planning capability while also forming a good basis for further growth.

With regard to the balance sheet structure, Somec carried out a non-cash capital increase (without subscription rights) totalling € 6.11 million at the end of the first half of the current financial year to strengthen its equity base. The subscription of the capital increase was reserved for VIS S.r.l., which is wholly owned by Somec's main shareholder Venezia S.p.A.. This transaction included the transfer of the property lease where Somec has its headquarters. The capital increase by contribution in kind comprised the issue of 381,875 ordinary shares at an issue price of € 16.00 per share, corresponding to 5.53% of Somec's share capital.

In view of the pleasing half-year results and good order situation, the Somec management has also confirmed its previous guidance with the announcement of the half-year figures and continues to expect a significant improvement in margins and an improvement in the debt situation ("leverage" reduction) for the current financial year 2025.

In light of the positive half-year performance, the continued good order situation and the confirmed outlook, we have maintained our previous sales and earnings estimates. Thanks in particular to its strong market positioning in the booming maritime sector, the Somec Group should be able to continue its growth trajectory and achieve a further gradual improvement in margins. Based on our confirmed forecasts and the "roll-over effect" that has occurred (price target based on FY 2026 instead of FY 2025), we have moderately increased our previous price target to € 23.35 (previously: € 22.50) per share. In contrast, the dilution effect (increase in the previous total number of shares by approximately 5.5% to 7.28 million), which was due to the capital increase against contribution in kind carried out in the middle of the financial year, had the effect of reducing the price target. In view of the current share price level, we therefore continue to assign a "BUY" rating and see significant upside potential in the Somec share.