FY 24/25 as expected // tide to turn in FY 25/26; chg.

FY 24/25 revenue declined by 5.1% yoy to € 93.7m (eNuW: € 93.7m) amidst a challenging market environment, particularly for Adhesives and ongoing restructuring in Curing, which were not compensated for by Disinfection. Q4 revenue stood at € 23.9m (-10.5% yoy). Importantly, FY 24/25 EBITDA increased by 94% yoy to € 5.8m (eNuW: € 5.8m), thanks to positive restructuring effects in Curing, a favourable product mix during the year and general tight cost control. In Q4, EBITDA came in at € 2.7m (Q4 23/24: -0.96m) implying a 11.4% margin.

Disinfection FY revenue rose by 6.7% to € 26.3m (eNuW: € 25.9m), as tailwinds persisted and first revenues were recorded from the ultra-pure water solutions. An EBITDA-contribution of € 3.2m (+ 6.6% yoy) supported the overall result and rose largely in line with sales. Q4 revenue accelerated by 10% yoy to € 7.2m with € 0.8m EBITDA (+93% yoy).

Adhesives FY revenue declined by 9.6% yoy to € 33.9m (eNuW: € 33.6m), due to a notable reduction in automotive orders and shifting consumer electronic supply chains amid high geopolitical uncertainty. The EBITDA amounted to € 2.8m (-36% yoy) accordingly. Q4 revenue fell by 7% yoy to € 9m, but EBITDA contributed € 0.4m, compared to € -0.7m a year prior.

Curing FY revenue was down 8.5% yoy at € 33.4m (eNuW: € 34.2m), as a result of lower end market demand and restructuring activities. These developments led to a significantly lower EBITDA loss of € -0.2 m (vs € -3.2m in FY 23/24). While Q4 sales fell by 27% yoy to € 7.7m, the EBITDA contribution significantly improved to € 2.5m (vs € -0.8m in FY 23/24), supported by the business’ seasonality.

FY 25/26, the tide looks set to turn. As reflected in the recently published FY25/26 guidance of € 95-105m revenue and € 6-9m EBITDA, management expects the group to return to growth following three consecutive years with a decreasing top-line. The bottom-line should rise as a result of higher revenue and cost cutting measures increasingly bearing fruit.

We expect moderate top-line growth of 4.8% to € 98.2m (eNuW) and 22% stronger bottom-line with € 7.1m (eNuW) EBITDA on the basis of growing after-sales activities, product portfolio reviews and tight cost control. In terms of end market developments, strong growth in semiconductors, moderate growth in consumer electronics, slight growth in automotives, mixed performance in printing and tighter EU regulation towards packaging is indicated by market researchers and should support the group. With tailwinds intact and increasing revenues from ultra-pure water use cases, Disinfection should growth by 8% yoy to € 28.5m (eNuW), followed by Adhesives (eNuW: +5% yoy to € 35.6m) and Curing (eNuW: +2% yoy to € 34.1m).

Confirming BUY at a PT of € 15, based on DCF.