FORTEC Elektronik (FEV) H1 24/25 earnings summary

Executive summary

• FORTEC Group operates as a system supplier in industrial high-tech, focusing on data visualisation and power supplies, with a strong presence in Europe and expanding globally, including a new development site in Egypt.

• Target markets include industrial automation, IT, medical technology, automotive, railway, transportation, and defence, with long-term customer relationships and strategic partnerships.

• The group has consistently generated positive returns over 40 years, leveraging in-house technology and expanding production services.

Financial highlights

• Group turnover for H1 2024/2025 was EUR 35.6 million, down 24% year-over-year from EUR 47.0 million, mainly due to weaker economic conditions and a traditionally softer Q2.

• EBIT dropped sharply to EUR 0.2 million from EUR 4.5 million year-over-year; EBIT margin fell to 0.5% from 9.6%.

• Net profit for the period was EUR 0.2 million, compared to EUR 3.2 million in the prior year; EPS decreased to EUR 0.07 from EUR 0.99.

• Gross margin slightly declined to 35.2% from 35.8% year-over-year.

• Cash and cash equivalents increased to EUR 23.7 million from EUR 22.3 million at the end of June 2024.

Outlook and guidance

• FY 2024/2025 guidance revised: expected group turnover now EUR 80–95 million (previously EUR 95–110 million), EBIT forecast at EUR 4–6 million (previously EUR 6–8 million), reflecting ongoing economic and geopolitical challenges.

• Management notes persistent uncertainty due to global geopolitical tensions, trade policy changes, and supply chain risks.