EQS-News: Financial year 2025: SBO advances strategic recalibration – solid 2025 results in a challenging market environment
EQS-News: SBO AG / Key word(s): Annual Results
Financial year 2025: SBO advances strategic recalibration – solid 2025 results in a challenging
market environment
19.03.2026 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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SBO advances strategic recalibration -solid 2025 results in a challenging market environment
• Sales of MEUR 455.3, market environment marked by lower customer spending
• EBITDA of MEUR 71.0 with a 15.6% margin, EBIT of MEUR 38.5 with an 8.5% margin
• Diversification advanced: Acquisition of 3T Additive Manufacturing, growth in geothermal
energy, carbon capture & storage, helium and lithium projects; entry into subsea flow control
market through NORSOK listing
• Market expansion in growth regions: Expanded sites in Saudi Arabia and Vietnam, new reline
and distribution center in Houston
• Dividend proposal of EUR 0.75 per share, payout ratio of 50.0%
Vienna/Ternitz, 19 March 2026. In the 2025 financial year, SBO initiated and advanced its
strategic recalibration despite an increasingly challenging market environment. Diversification
into new industries and technology fields, expansion into international growth markets, and
investments in technology leadership and operational excellence form the foundation for future
profitable growth. SBO delivered its technological solutions into future-oriented markets such as
geothermal energy, carbon capture & storage (CCS), as well as helium and lithium projects. With
the acquisition of 3T Additive Manufacturing, SBO further strengthened its position in 3D metal
printing. In parallel, SBO successfully deployed its high-performance materials in the subsea
flow control market and expanded its sites in Saudi Arabia and Vietnam. These steps position SBO
as a leading provider of high-precision technologies for the most demanding applications beyond
the oil and gas industry.
SBO continued to strengthen the foundations for future sustainable growth, while operating in a
persistently challenging market environment. An oversupply in the oil market, trade policy
uncertainties driven by the introduction of new tariffs, and low oil prices led to reduced
customer spending and decreasing drilling and completion activities. “In addressing the
short-term challenges, our operational excellence, cost discipline, and management of industry
cycles remain key success factors. We do what is necessary while keeping the short-, medium-, and
long-term perspective in mind. Since our focus is on the execution of our strategy, we will
continue to invest in diversification, market expansion, and innovation in order to create
long-term value”, says Klaus Mader, CEO of SBO.
Despite the difficult environment, SBO seized market opportunities and achieved solid results in
2025 through cost and efficiency management. SBO’s sales amounted to MEUR 455.3 (2024:
MEUR 560.4, -18.8%). The main driver of this development was lower customer demand, impacted by
the difficult market environment and lower spending levels. Customer restraint was particularly
evident in the Precision Technology (PT) division, while the Energy Equipment (EE) division
remained more resilient. Lower bookings for the full year amounted to MEUR 406.3 (2024:
MEUR 483.7), of which MEUR 99.2 was generated in the fourth quarter alone – around 10% above the
low point reached in the third quarter of 2025. Order backlog at year-end stood at MEUR 89.5
(2024: MEUR 141.8).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to MEUR 71.0
(2024: MEUR 101.9). The decline is primarily attributable to lower capacity utilization and
reduced sales in the PT division, although targeted cost reductions and capacity adjustments
mitigated the impact of lower sales. Measures implemented in the EE division last year led to an
improved profitability in EE. Overall, the EBITDA margin amounted to 15.6% (2024: 18.2%). Profit
from operations (EBIT) decreased to MEUR 38.5 (2024: MEUR 70.1), corresponding to an EBIT margin
of 8.5% (2024: 12.5%). Profit before tax amounted to MEUR 32.7 (2024: MEUR 63.6). Profit after
tax reached MEUR 23.6 (2024: MEUR 45.3). Earnings per share (EPS) for 2025 amounted to EUR 1.50
(2024: EUR 2.88).
Based on the solid earnings level and positive cash generation, the Executive Board will propose
a dividend of EUR 0.75 per share to the Annual General Meeting. This corresponds to a payout
ratio of 50%.
Capacity adjustments in PT take effect, EE significantly increases profitability
In 2025, the Precision Technology division generated sales of MEUR 189.5 (2024: MEUR 285.3). The
financial year was characterized by lower demand from SBO’s customers who, as a result of the
challenging market environment, significantly reduced or postponed CAPEX and increasingly focused
on the maintenance and repair of existing tools. EBITDA in the PT division amounted to MEUR 30.6
with a margin of 16.1% (2024: MEUR 67.0; 23.5%). Targeted capacity adjustments as well as related
cost and efficiency measures partially compensated the negative impact of the market environment.
EBIT amounted to MEUR 18.0 with a margin of 9.5% (2024: MEUR 56.7; 19.9%).
The Energy Equipment division generated sales of MEUR 265.8 in 2025 (2024: MEUR 275.2). Adjusted
for negative currency translation effects, sales amounted to MEUR 277.9 exceeding the prior-year
level by +1%. Key drivers of this development were new product launches, market share gains in
the US and geographic expansion in the Middle East. EBITDA in the EE division increased to
MEUR 45.8 (2024: MEUR 37.8), supported by the implementation of operational and structural
measures initiated in the prior year. As a result, the EBITDA margin increased to 17.2% (2024:
13.7%). EBIT increased to MEUR 26.3 with a margin of 9.9% (2024: MEUR 16.7; 6.1%).
Excellent balance sheet structure and strong cash position despite currency effects
SBO’s equity amounted to MEUR 421.9 as of 31 December 2025 (2024: MEUR 492.7). The decline was
almost entirely driven by the weakening of the US dollar against the EUR and the resulting
decrease of the currency translation reserve by MEUR 67.0. The resulting equity ratio of 47.2% as
of 31 December 2025 (2024: 50.0%) remains at a high level despite the year-on-year reduction.
Liquid funds amounted to MEUR 281.5 at year-end 2025 (2024: MEUR 314.7), with around half of the
decrease compared to the prior year also being currency translation related. Net debt as of 31
December 2025 increased to MEUR 78.1 after MEUR 56.0 in 2024. Gearing amounted to 18.5% (2024:
11.4%).
In the financial year 2025, cash flow from operating activities (operating cash flow) amounted to
MEUR 72.4 (2024: MEUR 98.4). Capital expenditure on property, plant, and equipment and intangible
assets (CAPEX) amounted to MEUR 50.0 (2024: MEUR 34.6). Cash flow from investing activities in
the financial year 2025 also includes payments for the acquisition of 3T Additive Manufacturing
Limited in the amount of MEUR 4.7 as well as the payment in 2025 for the remaining purchase price
of MEUR 3.9 from the Praxis acquisition. As a result, free cash flow amounted to MEUR 25.5 (2024:
MEUR 66.8). Adjusted for payments for the acquisition of subsidiaries, free cash flow in 2025
arrived at MEUR 34.1.
Market outlook: Oil & gas remain relevant, future markets are growing dynamically
According to the latest forecasts by the International Energy Agency (IEA), global energy demand
will continue to grow in the coming decades. Oil and gas continue to play a dominant role in the
global energy mix, currently accounting for a combined share of over 50%. Looking ahead to 2050,
their share in a continuing growth market for primary energy is estimated at around 47% to 49%.
At the same time, new growth markets are developing at a rapid pace. According to forecasts, the
growth of geothermal energy as an energy source is expected to attract investments of more than
USD 120 billion between 2025 and 2035. Similarly, drilling activity for carbon capture & storage
(CCS) is expected to increase significantly from just over 200 CCS wells in 2025 to more than
1,000 wells by 2030. The overall markets for helium are forecast to grow at a rate of 7%, while
lithium is expected to increase by as much as 19%.
The market size for metal additive manufacturing services was around USD 1.5 billion in 2025 and
is expected to grow to USD 4.8 billion by 2030. In this dynamic environment, SBO is optimally
positioned, not least due to the recently completed acquisition of 3T Additive Manufacturing
Limited. “The long-term fundamentals for our business remain intact: oil and gas remain key to
the global energy mix. At the same time, significant growth opportunities are opening up in
future markets such as geothermal energy, CCS, helium and lithium, 3D metal printing and flow
control. Through diversification, technological leadership and financial strength, SBO is ideally
positioned to capitalize on these opportunities”, says CEO Mader.
Company outlook for 2026: Transition year in PT, growth opportunities in EE
Although current analyses point to a stabilization of the market in 2026, SBO expects the market
environment to remain challenging due to the continuing oversupply of oil, volatile oil prices,
geopolitical uncertainties, and an evolving tariff environment. Since 28 February, the
geopolitical situation in the Middle East has deteriorated materially and become more tense as a
result of military actions and responses. “We are monitoring developments closely. The safety of
our employees remains our highest priority. Based on our regional footprint, the main near-term
risk to the business is disruption to logistics and transport routes. Any further impact will
depend on the duration and development of the conflict”, says Klaus Mader.
Several international oilfield service companies, including key customers of SBO in the Precision
Technology division, characterize 2026 as a “transition year”. SBO expects sales to remain
subdued in the PT division in the first half of 2026. An improvement is expected in the second
half of the year as the higher bookings since Q4 2025 will convert into sales. SBO is focusing on
cost efficiency and capacity management in this area. In the Energy Equipment division, SBO sees
growth opportunities due to the ongoing internationalization of the well completion business,
supported by the opening of a regional manufacturing center in the United Arab Emirates. The
relining center in Houston, which opened in January, will help to further strengthen the market
position of SBO’s drilling motor business in the US.
Strategic priority: Diversification into future markets
SBO also expects further growth in 2026 in the area of drilling and completion of next-
generation geothermal wells, as well as in the development of CCS, lithium, and helium projects.
Building on its expertise in advanced additive manufacturing, SBO will continue to drive growth
across space, aerospace, defense, semiconductor, energy, and other industries in 2026.
“Thanks to our excellent balance sheet structure and high liquid funds, we execute our strategy
along the four pillars of diversification, market expansion, technology leadership, and
operational excellence. With our financial strength, we will actively pursue organic growth,
strategic partnerships, and targeted acquisitions in 2026”, concludes CEO Klaus Mader.
SBO’s Annual report:
[1] https://www.sbo.at/en/investor-relations/reports-publications#annual-publications
SBO’s key performance indicators at a glance
UNIT 2025 2024
Sales MEUR 455.3 560.4
EBITDA (Earnings before interest, taxes, depreciation, and amortization) MEUR 71.0 101.9
EBITDA margin % 15.6 18.2
EBIT (Earnings before interest and taxes) MEUR 38.5 70.1
EBIT margin % 8.5 12.5
Profit before tax MEUR 32.7 63.6
Profit after tax MEUR 23.6 45.3
Cash flow from operating activities MEUR 72.4 98.4
Free cash flow MEUR 25.5 66.8
Liquid funds as of 31 December MEUR 281.5 314.7
Net debt as of 31 December MEUR 78.1 56.0
Equity ratio as of 31 December % 47.2 50.0
Headcount 1,539 1,596
About SBO
SBO AG is leading in the manufacture of high-alloy, non-magnetic steels, high-precision
components and high-tech equipment for the energy sector and other industrial sectors. The global
high-precision technology group, headquartered in Ternitz, Austria, operates worldwide at more
than 20 locations with around 1,500 employees. The group delivers cutting-edge technologies
backed by a highly innovative product portfolio and strong intellectual property. In its
Precision Technology division, SBO specializes in high-precision metal components, ranging from
complex steel parts to additive manufacturing solutions for industries requiring maximum accuracy
and performance. In the Energy Equipment division, SBO provides high-tech equipment for
directional drilling and well completion including high-precision flow control products. Designed
for extreme conditions, these solutions perform in high-temperature and high-pressure
environments, serving important industries including oil and gas, energy and other industrial
sectors. SBO is listed in the leading index ATX of the Vienna Stock Exchange (ISIN AT0000946652).
More information: [2] www.sbo.at
Contact:
Judit Helenyi, Director Investor Relations, SBO AG
phone: +43 2630 315 253
email: [3]investor.relations@sbo.at
[4]media.relations@sbo.at
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19.03.2026 CET/CEST This Corporate News was distributed by [5]EQS Group
View original content: [6]EQS News
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Language: English
Company: SBO AG
Hauptstrasse 2
2630 Ternitz
Austria
Phone: +43 (0)2630/315110
E-mail: info@sbo.at
Internet: http://www.sbo.at
ISIN: AT0000946652
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 2293034
End of News EQS News Service
2293034 19.03.2026 CET/CEST
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3. investor.relations@sbo.at
4. media.relations@sbo.at
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