GESCO SE publishes half-year report 2025

• GESCO resilient in the face of difficult conditions
• Stable level of sales, incoming orders and earnings

GESCO SE today published its half-year report for the first half of 2025. In an economic environment characterised by geopolitical tensions and trade conflicts, the Group shows solid business development.

Market environment and challenges

The first half of 2025 was characterised by a challenging economic environment. Unresolved geopolitical tensions, in particular the wars in Ukraine and the Middle East, the erratic US customs policy and the resulting global trade conflicts weighed on the global and national economy and overshadowed investment impetus. The International Monetary Fund (IMF) revised its growth forecast for 2025 from 3.3% to 2.8%, highlighting the uncertainties for export-orientated economies such as Germany. The economic forecasts of all leading institutes for industrialised economic segments are cautious to pessimistic.

The recently agreed tariff rates for the exports of German industrial goods into the USA give cause for hope for companies in the mechanical and plant engineering and medical technology sectors but are an enormous burden for export-orientated business models in these industries, for example in the steel trade.

Development at Group level

When comparing the figures for the first half of 2025 and the first half of 2024 in this publication, it should be noted that there were changes at the turn of the year 2024/2025. The subsidiary AstroPlast was sold in December 2024 as part of a management buyout. The Foundry and Steelworks divisions at Doerrenberg were sold with effect from 31 December 2024.

With this in mind, incoming orders totalled € 240.3 million, which corresponds to a decrease of 12.8% compared to the previous year. Sales fell by 6.2% to € 237.2 million. At the same time, EBITDA increased by 5.1% to € 16.5 million. The operating result (EBIT) rose disproportionately by 26.4% to € 8.3 million, demonstrating the successful adjustment of the cost structure and improved operating efficiency. Consolidated net income after minority interests totalled € 4.5 million, significantly exceeding the previous year's figure of € 2.0 million. This led to an increase in earnings per share to € 0.44 (previous year: € 0.19). The number of employees fell to 1,573, which is mainly due to the sales and efficiency measures.

Segment development

GESCO Group is divided into three operating segments, which developed differently in the first half of 2025:

1. Materials Refinement & Distribution

The segment, which comprises the companies Doerrenberg, PGW and Funke, operated in a challenging market environment. Incoming orders totalled € 109.5 million, which corresponds to a decrease of 12.6% compared to the first half of the previous year (€ 125.2 million). This development primarily reflects the market situation in the steel industry, which is characterised by overcapacity, trade restrictions and intense price pressure from Asian markets. Sales fell by 12.3% to € 111.2 million (previous year: € 126.8 million) and the operating result (EBIT) fell to € 2.7 million (previous year: € 4.6 million), which corresponds to an EBIT margin of 2.5%.

2. Health Care REIT & Lifescience

In the Health Care REIT & Lifescience segment, the companies Setter, INEX and AMTRION were able to stabilise their market positions. Incoming orders totalled € 68.1 million, which corresponds to a decrease of 10.0% compared to the previous year (€ 75.7 million). Nevertheless, sales increased by 3.1% to € 79.1 million (previous year: € 76.7 million), which is primarily due to the positive business development at Setter. EBIT improved by 22.6% to € 6.9 million (previous year: € 5.6 million), resulting in an EBIT margin of 8.8%. 

3. Industrial Assets & Infrastructure

The Industrial Assets & Infrastructure segment, comprising the companies SVT, MAE and Kesel, recorded a solid performance despite the difficult general conditions. Incoming orders fell slightly by 5.8% to € 62.7 million (previous year: € 66.6 million), but the order backlog remains at a historically very high level of € 101.1 million. Sales increased by 13.2% to € 47.0 million (previous year: € 41.5 million) and EBIT totalled € 2.5 million (previous year: € 1.1 million).

Outlook

The Management Board stands by the forecast for the 2025 financial year issued at the end of April. Accordingly, the Management Board expects sales of €485–515 million and Group earnings of €13–17 million.

The acquisition of Eckart GmbH, which will take effect retroactively on 1 January 2025, will contribute approximately €20 million in sales in the current year and, due to transaction costs, is not expected to contribute significant earnings to Group figures.

The full half-year report 2025 can be found at www.gesco.gesco.de/en/investor-relations/financial-reports.

Key figures (IFRS) GESCO Group:

1. Including the Foundry and Steel divisions and AstroPlast, which were sold at the end of 2024
2. After minority interests
3. XETRA closing price on the balance sheet date
4. Number as at the balance sheet date, excluding trainees

About GESCO:

GESCO SE is an industrial group with market- and technology-leading companies in the capital goods industry, specialising in Materials Refinement & Distribution, Lifescience & Healthcare and Industrial Assets & Infrastructure. As a Prime Standard-listed company, GESCO offers institutional and private investors access to a portfolio of hidden champions in the industrial SME sector.

Contact

Peter Alex
Head of Investor Relations & Communications

Phone +49 (0) 202 24820-18
E-mail: ir@gesco.de
Internet: www.gesco.de