Good afternoon. This is the conference operator. Welcome, and thank you for joining the GVS First Quarter 2026 results web call. All participants are in listen-only mode, and after the presentation, there will be a Q&A session. At this time, I would like to turn the conference over to Mr. Massimo Scagliarini, CEO of GVS. Please go ahead, sir.
Thank you very much. Good afternoon and good morning. Welcome, everybody, to the 1st Quarter Presentation of GVS Group. I am not seeing the presentation on the screen right now, so I don't know if the participants are seeing it otherwise I will kindly ask the moderator, yeah, to set up the presentation. Okay. Hello? Could you please, the call operator?
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Okay. Thank you.
Again, good afternoon and good morning. Welcome to the Q1 Presentation of the GVS Group. A quick snapshot on the number. First quarter at EUR 105 million +3.9% versus previous year, Q1 2025. Adjusted EBITDA at EUR 25.9 million, +0.3% versus previous year, and margin at 24.6%, 57 BPS better than 2025. Net income at EUR 10.7 million, with a margin of 10.2%, and the net financial position at EUR 249 million, with a leverage of 2.3x. Some quick detail. We have a nice 3.5% growth on Healthcare and Life Science. Energy & Mobility flattish, -0.5%.
Safety, a nice growth, +8.6% versus previous year. As I mentioned before, adjusted EBITDA at EUR 24.6 and a value of EUR 25.9, so +0.3% versus previous year. Net financial position at a leverage of 2.3 with EUR 249 million. I leave the speech to Guido for some granular details.
Thank you. Thank you, Massimo, and good morning, good afternoon to everyone. We now comment the various analysis on sales Q1 2026 revenues versus Q1 2025. The first step that we comment is the negative FX impact of about 6%, and this is mostly related to US dollar depreciation. EUR 5.4 million out of the EUR 6.4 million are related to USD. Excluding the effects, we have a 3.9% organic growth that is made by volume and pricing growth. Starting from pricing, the EUR 1.6 million, equivalent to 1.4% year-over-year, is in line with the performance we recorded in the last quarter and the last years.
While we have a nice 2.6 million, so 2.4% year-on-year volume growth compared to the first quarter of the previous year. We have a completely like for like perimeter in this quarter, and these 2.6 million are referred to the growth mostly of Safety, Transfusion Medicine, and MedTech. Moving now to the next slide, we see the performance division by division. First thing we want to highlight is the very good performance of Healthcare and Life Science, not only for the growth, 3.5% excluding FX organic performance versus the previous quarter, but also the fact that all the three sub-division of healthcare are delivering a solid organic growth. Starting from MedTech, plus 2% compared to the previous quarter.
The Transfusion Medicine, we almost have 7.9% of organic growth, Life Sciences 6.2% growth. Moving then to Safety. Safety is delivering a very consistent high single-digit growth. This quarter it is +8.6% preview versus the previous, the first quarter of the previous year. We have a stronger FX impact on this, the organic is absolutely in line with the very good performance that this division delivered in the previous quarter. As Massimo anticipated, Mobility, we have a substantial stability in the sales of Mobility, this also is a very important sign of stabilization after difficult quarter of the division. We are basically flattish on organic.
Perspective, we see some impact of effects given also the exposure we have of the automotive business to the U.S. market. Now, hand over to Marco to comment the profitability.
Thank you, Guido. Good morning. Good afternoon, everybody on the call. Let's move to the financials. First, EBITDA. EBITDA in absolute terms is slightly going up from EUR 25.8 million to EUR 25.9 million. If we look at the adjusted EBITDA margin, there is an improvement of around 60 basis points, so 60 basis points, mainly driven by pricing. We increased pricing by 1.4%. That impact has nothing to do with the reaction we are going to implement to offset raw material pricing going up. In Q1, there is no impact of that. Volume is positive, around EUR 1 million. Unfortunately, negative effects already commented by Guido. You see there is a negative EUR 0.9 million, you see other.
This is mainly due to the startup cost linked with the transfer of the Transfusion Medicine production from the Tijuana plant of Haemonetics to our Mexican plants. It's just a matter of time. For sure, we are going to improve and release efficiencies in the second part of the year. We can move to the next slide, which is about the Adjusted Net Income. If you look on the left, there is a strong improvement of the Adjusted Net Income, but this is mainly driven by effects related to the US dollar intercompany loans. If we remove that impact, you see a slightly negative trend. The Adjusted Net Income is equal to around 10%, which is more or less what we showed last year.
It's going down slightly due to higher D&A. Higher D&A are mainly due to the 2025 CapEx for the plants in U.K. and China. It also due to, as I said before, the movement, the startup of the transfer to of the new production, transfer of the production of the Transfusion Medicine products. The last slide is about net financial position. Here it's perfectly aligned with our guidance and with our budget. Net financial position, as usual, in the first quarter is going up. Here you see a deterioration of around EUR 10 million, mainly due to working capital. You see there is a negative EUR 21 million.
As usual in Q1, this negative trend of both stock and the receivables, which we are going to offset later on during the 2026. If you look, if you compare net financial positions at the end of March 2026 to the net financial position of the twelve months before, you see an improvement of around EUR 26 million. You should remove the extraordinary impact of the already mentioned, the CapEx for the new plants. If you do that, if you have an improvement of the net financial position in twelve months of around EUR 35 million-EUR 36 million, which means more or less an average improvement of EUR 9 million per quarter, which is more or less our target. Now, I can give the floor to Massimo for the conclusions of the presentation.
Okay. Nothing really changed compared with the last conference. MedTech, we are working on establish the new subdivision to have more focus on high-growth segment. Transfusion Medicine, the platform has been built, now we have to push on growth and accelerate the new product development. Safety, keep expanding the business, using the ramp-up of new products, and not only the new geography. Life Sciences, validation with pharmaceutical customer, new distribution agreement. Mobility, stabilize the revenue, and continue grow on EV-related solution and recovering some volume in the agricultural vehicle application. Guidance, again, nothing has changed. In sales, low single-digit growth with a progressive acceleration through the year. Adjusted EBITDA from 20 to 50 basis points of margin expansion versus previous year, leverage ratio in the region of 1.8.
Of course, excluding the impact of the voluntary partial tender offer on the treasury shares. Here, we close the presentation, and I believe we can move to the Q&A section.
Thank you. We will now begin the question and answer session. To enter the queue for questions, please click on the Q&A icon on the left side of your screen. When announced, please click continue on the pop-up window. If you're connected in audio only, please press star and one on your telephone. The first question is from Emanuele Gallazzi, Equita.
Good afternoon, everybody. Thank you for taking my question and for the presentation. I have, let's start with two questions. The first one is on the guidance, you were pointing to a gradual improvement in organic growth through the year. You posted already in the first quarter a, I would say, a good performance at the 4% versus a low single-digit target for the full year. I was just wondering which division overperformed your initial expectation. The second one is on the Safety business. Still very good performance in the first quarter. Can you give us more color on the new product and, generally speaking, how demand and the competitive environment is evolving for the Safety business? Thank you.
For the first question, I would say there is an overall growth that it's a little bit better than our expectation. There are not one division that is performing better than the other. For what regard to Safety, I would say that we have different product that are in launch phase. Of course, the Full Face Mask that will gain full speed this year because entered in the market by the end of last year. We have new helmets to be used on the PPE market or on the assisted air type of protection device. We have even a new system, a radio system for communication between operator to be added to the helmet.
There are many different things that will help accelerate the growth. Again, I will keep this inside the what we are expecting from this division. The 8, around the 8% growth.
Very clear.
Yes.
The next question is from Alessandro Tortora, Mediobanca.
Yes, hi. Good afternoon to everybody. Let's say I have let's say three question, okay, if I may. The first one relates to the Transfusion Medicine business. If you can help us to understand, you know, you mentioned before that the expectation for the year is this, let's say, gradual acceleration with the good starting Q1. The question is, how do you see now the transfusion medicine progressing over the year? If should we expect, let's say, I don't know, second half significantly better due to, I don't know, some development on the commercial side? Just to understand how you see the development of this segment over the year. This is the first question. Thanks.
I am very prudent on Transfusion Medicine because is true that now we have internalized all the production and we are fully vertically integrated. I am basically launching 50 or 60 new product code in production. That might generate a lot of turbulence, a lot of problem. Right now we are moving well in the right direction. I just want to be prudent because there are many variable that are playing in this in this kind of process.
Just, you know, just maybe my question wasn't, let's say, correct on this. What is the initial feedback now you're getting from clients? Clearly now you are, let's say now, a sort of a new entrant into the market. What is, let's say, the initial feedback you are collecting from clients?
Well, it's a very good question. The point is that the product that we have is recognized by the market as the best product. No doubt. You can ask every user, is absolutely the best product for these applications. The product is in the market for many years, so everyone knows the product. Of course, we are new, but we are replicating the process that have been in place on the last 20 year. Again, we have to do everything right in our production process so to keep the top quality of the product and not making any type of mistake in this direction, and the market will prize us. If we make mistake, that might slow down our growth in this market.
That's why I have my eyes pointed on this process business, and I am personally following every single step of this expansion.
Mm-hmm. Okay. Okay, understood. Thanks. The second question is on, you know, the topic related to rising cost inflation, but also on the input side for you. Can you tell us, first of all, if you are observing into your, let's say, you know, cost base, some initial, no, tension on this, and what is, what are sort of the countermeasure you are doing in order, let's say, to, you know, mitigate this impact, clearly this year, but also let's say next year? Thanks.
Basically, I am seeing a letter of force majeure indication every day.
This means that whatever type of contract you have is not considered anymore. Of course, this is more a kind of preparation by everybody to understand what's going on with the barrel, with the petrol. Right now we have already act in term of increasing our stock to cover ourself into the future. Of course, we are working on the pricing with the customer. This is the only two things that we can, let's say, do. We are strengthening also our supply chain so that we are more and more local for local and not depending on transportation across the oceans because that the other topic that will be hot in the future. Right now, for our forecast, we don't see, Marco.
Yeah. No material impact in Q2 at least.
Exactly. I believe that everybody's on the window to see what is going to happen with Hormuz.
Okay. Just to be clear, on top of, let's say, you know, the positive price trend that, you know, we saw already in Q1, you haven't, let's say, announced today incremental prices increases, let's say to customer?
Alessandro, let's say that incremental pricing to customers will offset raw material pricing. That's the summary in the end. That's why I'm saying that no significant impact is expected. There are early signs of raw material going up.
We offset that with incremental pricing to customers. That's the summary.
Okay.
No impact on EBITDA.
Okay. Okay. Thanks. The last question from my side is just, let's say, confirmation of if you can tell us if you are still committed at a certain point of the year, probably let's say the second half, to give us an update on the medium term for GVS. Thanks.
We say G plan.
Yeah. Yeah. It's. We are still committed. I suppose it will be after the summer, as a period.
Okay. Thanks, guys.
Welcome.
The next question is from Christian Hinderaker at Goldman Sachs.
Good afternoon, Massimo, Marco, and Guido. Apologies in advance 'cause I was having some firewall issues and hence late to the call. I wanted to start, if I can, on the Life Sciences growth dynamics. Growth's improved there. I guess, I think when we think back to the fourth quarter, there were some potential distribution agreements that were being mentioned. I wonder how we should think about the timing of those. Did they support the better growth in Q1, or is that something that's still to come in the remainder of the year?
Still coming. I mean, all these kind of negotiation are not sure, also because, if we have to substitute another player, it's not something that happen quickly. They are coming, so this is the positive, this is the positive news.
Super. Thank you. Then just turning, you said in the past net income represents a reasonable proxy for your free cash flow, should be around EUR 10 million-EUR 12 million per quarter. You had EUR 10.7 of net income in Q1, then the free cash outflow on my math's around EUR 10 million negative. Appreciate inventories and receivables usually up in the first quarter seasonally, I wonder, how do we think about the net working capital expectations as we look ahead through the rest of the year?
You're right because in the end we will, our expectation is to fully offset that trend in the second part, which means that our target in the end is to have a zero impact of the working capital. This is at the end of the year. If you look at the history of the company, you see in the first half, negative trend of the working capital. In the second half, you have the opposite trend.
Clear, Marco. Makes sense. I think that's it for the moment.
As a reminder, if you wish to ask a question, please click on the Q&A icon on the left side of your screen or press star and one on your telephone. Once again, if you wish to ask a question, please click on the Q&A icon on the left side of your screen or press star and one on your telephone. Gentlemen, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.
Excellent. Thank you very much. Thank you to everybody. See you at the next conference call. Thank you for the participation.
Thank you. Bye.
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