Original-Research: Somec S.p.A. (von GBC AG): BUY

Classification of GBC AG to Somec S.p.A.

Company Name:	Somec S.p.A.
ISIN:	IT0005329815
Reason for the research:	Research study (Anno)
Recommendation:	BUY
Target price:	26.95 EUR
Target price on sight of:	31/12/2027
Last rating change:
Analyst:	Marcel Goldmann, Cosmin Filker

H1 2026: Strong operating profit; record order book achieved enables a return to growth in the medium term

In the 2025 financial year, Somec recorded a 3.3% decline in consolidated turnover to € 370.02 million (PY: € 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 decline in turnover amounted to 2.1%. In contrast,EBITDA and the operating margin rose significantly by 12.7% to € 33.32 million (PY: € 29.58 million) and to 9.0% (PY: 7.7%), respectively, primarily due to the increased focus on higher-margin contracts. In parallel with this, net profit (after minority interests) also improved significantly to € 4.82 million (PY: € -3.30 million).

With regard to the first half of 2026, Somec had to contend with a 3.3% decline in turnover to € 186.32 million (H1 2025: € 192.72 million), primarily due to adverse currency effects and a deliberately more selective approach to project selection. On a constant exchange rate basis, the decline in turnover was just 1.4%. In contrast, significant improvements were achieved through a greater focus on higher-margin contracts, a more balanced revenue mix and greater efficiency gains at all levels of profitability. EBITDA rose significantly by 10.8% to € 17.54 million (H1 2025: € 15.83 million), resulting in an increase in the EBITDA margin to 9.4% (H1 2025: 8.2%). Net profit (after minority interests) also improved significantly to € 6.12 million (H1 2025: € 1.63 million).

The Somec Group has not issued any specific guidance for the current financial year 2026. Nevertheless, according to statements made by the engineering company’s management during the half-year earnings call, it expects a slight improvement in consolidated revenue performance for the second half of the 2026 financial year.

According to statements made by Somec’s management to Teleborsa in mid-September 2026, the group is expected to return to a growth trajectory across all three business divisions in the medium term. Specifically, the ‘Horizons’ division is expected to see its core business return to a sustainable growth path following a period of consolidation. The civil façade business, new shipbuilding and the refitting business have been identified as key growth drivers in this regard. With regard to the ‘Talenta’ business division, Somec expects growth to continue, particularly in the areas of new shipbuilding and maritime refitting activities. With regard to the ‘Mestieri’ division, Somec also anticipates a return to growth in the medium term, based on the expected resumption of various interiors projects. In addition, the company aims to resume M&A activities in the ‘Mestieri’ business division from 2027 onwards, which could subsequently provide further impetus for growth.

In order to return to a significant growth trajectory from the 2027 financial year onwards, the Somec Group can draw on an extensive order book. The total order book increased significantly as at 30 June 2026 to € 956.0 million (31 December 2025: € 771.0 million). Thanks to the major contracts secured by Somec after the half-year reporting date, such as the prestigious 350 Park Avenue record contract for Fabbrica, the total order book most recently even reached a record level of over € 1.1 billion.

Against the backdrop of Somec’s weaker half-year turnover, which fell short of our expectations, we have revised our previous turnover estimates for the current financial year 2026 slightly downwards to € 375.13 million (previously: € 379.94 million). Nevertheless, in view of the strong operating profit performance and profitability in the first half of the year, we have maintained our previous EBITDA estimate (EBITDA GBCe: € 36.25 million) for the current financial year. We have also left our revenue and EBITDA estimates for the subsequent financial year 2027 unchanged.

In view of the record order book (most recently over € 1.1 billion), which has significantly increased visibility on future revenue, and the medium-term return to growth for the Group anticipated by Somec management, we have raised our revenue and EBITDA estimates for the 2028 financial year to € 408.54 million (previously: € 399.73 million) and € 42.09 million (previously: € 40.53 million) respectively.

In view of the improved financial result at the end of the first half of 2026 and depreciation and amortisation (D&A) costs that were lower than we had expected, we have also raised our previous net profit and EBIT estimates for the 2026 financial year and subsequent years.

Overall, the engineering group should continue to benefit in future from the global cruise industry, which remains buoyant, thanks to its extensive business activities, which are firmly rooted in the maritime sector. The prestigious record-breaking contract for Fabbrica should also enable the US façade business to regain momentum in the coming financial years. The planned resumption of M&A activities from the coming financial year 2027, with a focus on the Mestieri Division, opens up additional growth potential and could further significantly boost the pace of future growth.

Based on our revised revenue and earnings forecasts for the current financial year and subsequent years, we have raised our previous price target to € 26.95 (previously: € 22.70). Our increase in the target price stems primarily from our significantly raised forecasts for the 2028 financial year and the associated higher baseline for estimates in subsequent years. The so-called ‘roll-over effect’ (new target price horizon 31 December 2027 instead of the previous 31 December 2026) also contributed to the increase in the target price. By contrast, our increased cost of capital (WACC), resulting from the rise in the risk-free interest rate (from 3.0% previously to 3.5% currently), had a downward effect on the target price. In view of the current share price level, we therefore maintain our ‘BUY’ rating.

 

You can download the research here: 20261022_Somec_Anno_ENG_final Contact for questions: GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Disclosure of potential conflicts of interest pursuant to Section 85 of the German Securities Trading Act (WpHG) and Article 20 of the Market Abuse Regulation (MAR) The following potential conflict of interest exists in relation to the company analysed above: (5a, 5b, 6a, 11); A list of potential conflicts of interest can be found at: https://www.gbc-ag.de/de/Offenlegung Note on issuer-sponsored research: This research report is issuer-sponsored research and has been prepared in accordance with the EU Code of Conduct for issuer-sponsored research. +++++++++++++++ Completion: 21/10/2026 (17:25 pm) First disclosure: 22/10/2026 (10:30 am)