Good morning, everyone. Thank you for joining the Racing Force Group management call on our first half 2026 results. I am Paolo Delprato, Chairman and Group CEO. With me is Roberto Ferroggiaro, our Group CFO and Investor Relator. The agenda is as follows. I will start with an overview of the apps and our main strategic highlights. Roberto will then take you through the financial results in detail, and after that, I will come back for an update on our multiple projects and for the outlook on 2026 and 2027. Then we will be happy to take your questions with a Q&A session. Let me start with the headline. H1 2026 was the best first half in the history of the group. Sales reached EUR 46.8 million, up 19.1% on last year and 21.2% at the constant exchange rates.
On a last 12-month basis, we are now at EUR 80.6 million, an all-time high. The growth carried through the profitability. EBITDA was EUR 10.2 million, up 22.7%, with the margin improving to 21.7% from 21.1%. Net income grew even faster, +40%, to EUR 5.9 million, a 12.7% margin. Cash flow from operation was EUR 5.1 million compared with EUR 7.6 million a year ago. This mainly reflects the build-up in working capital, and Roberto will explain it in a moment. Net financial position was EUR 9.1 million compared with EUR 7.8 million at year-end, and it already includes the dividend payment. CapEx came down to EUR 3.7 million now that our investment plan is complete. On the dividend, we distributed EUR 2.6 million, EUR 0.095 per share, a 42% payout. That brings the total return to shareholders over the last five years to EUR 11.4 million.
We see it as a clear sign of our commitment to growth that is both profitable and sustainable. Beyond the numbers, the half delivered several important milestones. First, capacity. The expansion projects in Ronco Scrivia and in Bahrain are complete, and H1 2026 is the first period to benefit from the new production capacity. That capacity is what allows us to support growth at these rates. Second, resilience. After the conflict in the Middle East began on February 28th, our teams rerouted the logistics very quickly. Alternative shipping routes are now fully operational, and so far, the impact on the business has been very limited. Third, Formula One. In 2026, we equip two F1 teams, including the Mercedes-AMG PETRONAS F1 Team, which is currently leading both the drivers and constructors' championships. There is no better showcase for our products, clearly. Fourth, Zeronoise. This technology is increasingly present in motorsport.
Driver's Eye camera is used in Formula One, Formula E, and INDYCAR, and in INDYCAR, we have a multi-year partnership with FOX Sports, with which we are exploring also other application in other sports. Fifth, North America. We opened a new facility in Corona, California to support our growth strategy in what is now our fastest-growing region. Finally, the multiple projects are progressing as planned and laying the groundwork for significant growth from 2027. I will come back to them shortly. With that, I will hand over to Roberto for the financial results. Roberto, please.
Thanks, Paolo, and good morning, everyone. Let's start with a quick overview on sales. In the first half of 2026, sales reached EUR 46.8 million , up 19.1% compared to the first half of 2025. At constant foreign exchange rates, growth stood at 21.2%. The second quarter confirmed the pace set in the first one, with revenues of EUR 22.5 million and growth of 20.3%. The growth in the half year confirms the trend started in the second half of 2025, driven by the introduction of the new FIA and Snell homologation standards and by an order intake from customers, which remained solid throughout the period. These results were achieved in a macroeconomic environment still characterized by significant uncertainty with high geopolitical instability, mainly due to the conflict in the Middle East.
The last 12 months revenue as of June 30, 2026, reached EUR 80.6 million, approximately 20% above the previous 12 months and the highest level ever recorded in the group's history. Since 2021, the year of the listing on Euronext Growth Milan, sales have registered a new record in each semester compared to the prior year. Moving to the details of sales across the main dimension we use for our analysis, the main message here is that growth was spread across all product segments, all geographies, and all distribution channels. In terms of product categories, Driver's equipment increased by EUR 5.3 million , +17.9%, and represents 75% of total sales. The main contributors were, once again, the helmets, up 23.5%, which continued to capitalize on the momentum of the new homologation standards, and OMP brand suits, up 20.3%, whose visibility in the main international championship is translating into steady market share gains.
Car Parts returned to growth with an increase of EUR 0.6 million , +9%, thanks to the progressive recovery during the second quarter of the delays accumulated in previous months in the production programs of some major racing car manufacturers. If you remember, this is exactly the positive contribution we anticipated when we commented on the full year 2025 results. The Other segment kept growing at a strong pace, +EUR 1.6 million , which is +58.2%. There are two main drivers here. First, the multi-year supply of Racing Spirit branded apparel. The brand is up 97.8% in the six months. Second, the delivery of the second batch of HPS Riot Helmets to the Dutch Ministry of Justice and Security, which took place in the first quarter. Even excluding the multi-year supply, Racing Spirit brand alone still grew by EUR 0.3 million .
That is +45.8%, thanks to higher sale in the yachting sector and to corporate customers in other industries. In terms of geographical areas, EMEA remains our most significant market, with 62% of total sales and growth of EUR 2.3 million , +8.5%, further consolidating the group's leadership position. The Americas are the growth engine of the period, with revenues that reached EUR 13.1 million , an increase of EUR 3.8 million, equal to 41.4% at current exchange rates, which becomes +50.3% at constant exchange rates. The region now accounts for 28% of total sales. These results reflect the constant strengthening of our brands in the main American championships, with growing appreciation for both OMP driver's equipment and the helmets. Asia Pacific recorded sales of EUR 4.9 million , up EUR 1.4 million , +39.8%, accounting now for 10% of total group sales.
The growth was reported across all the main countries of the area, particularly in the Australian market, where we are leader due to a different procurement plan by primary dealer compared to the prior period. With regard to sales channels, revenue from dealers amounted to EUR 26 million, equal to 56% of total sales, with growth of EUR 3.4 million, +15.2%. Sales to teams and car manufacturers increased by EUR 2.3 million, +22%, supported by the technical partnership agreements in place in the main world championships and national competitions. Customers classified as other recorded growth of EUR 1.8 million, +27.9%, mainly thanks to the contribution of Racing Spirit branded products. Moving to the next slide, number seven, on gross profit.
Gross profit in the first half of 2026 amounted to EUR 29.2 million, with an increase of EUR 4.7 million compared to the first half of 2025, equal to +19%, which is entirely driven by volumes. The gross margin on sale was 62.5%, substantially in line with the marginality of the first half of 2025. The stability of the percentage margin is the result of two offsetting effects. On one side, a positive contribution from product mix with the growth of helmets and driver's equipment, and from pricing. On the other side, cost inflation on raw materials, which we have been able to pass on to sales prices almost entirely.
Also, the first half of 2026 is the first period in which the group fully benefits from the new production and logistics structure following the completion of the investment plan in autumn 2025, which also brought a positive contribution to marginality. Next slide, number eight, is on EBITDA. EBITDA amounted to EUR 10.2 million, up from EUR 8.3 million in the first half of 2025, with growth of EUR 1.9 million, equal to +22.7%. This is the highest EBITDA that the group has ever reported in a single half year. The EBITDA margin on sales was 21.7%, 60 basis points better than the 21.1% of the first half of 2025 due to the following factors: A gross margin increase in absolute value of EUR 4.7 million, as described before, that was partially offset by higher selling and distribution expenses and higher G&A.
Selling and distribution expenses increased by EUR 1.7 million from EUR 5.7 to EUR 7.4 million, mainly due to the higher number of technical partnership agreements in place during the period to freight out linked to the higher volumes of sales, higher royalties, which grew again in line with revenues, and higher costs linked to radio communication services provided by Zeronoise Communication Services in H1 2026. General and administrative expenses increased by EUR 1.1 million from EUR 11.4 to EUR 12.5 million, mainly due to the increase in the average number of employees across the group's main operating sites. +93 on average, compared to the first half of 2025, following the introduction already starting from the second half of 2025 of specialized technician and production profiles supporting the expected growth, both in motorsport and in the defense industry.
Compared to the end of December 2025, headcount increased by 21 people, in line with our expectations. Next slide, number nine, is on net income. Net income passed from EUR 4.2 million in the first half of 2025 to EUR 5.9 million in the first half of 2026. An increase of EUR 1.7 million equal to +40.1% with a net income margin on sales of 12.7% against 10.8% last year, so 190 basis points better. The increase compared to prior year is mainly due to EUR 1.9 million higher EBITDA and to EUR 0.5 million lower net finance costs, partially offset by EUR 0.6 million higher depreciation and EUR 0.1 million higher taxes.
On finance costs, net financial expenses in H1 2026 were EUR 0.5 million against EUR 1 million of the first half of 2025, mainly due to the fact that last year's figures were affected by unrealized foreign exchange losses on intragroup balances. On depreciation, the increase from 1.9 to EUR 2.5 million is the expected consequence of the completion of the investment plan as the new assets in Ronco Scrivia and Bahrain as well entered into operation and are now being depreciated together with the continuous investments in R&D. Let's move to slide number 10, which is about CapEx and net working capital. In the first half of 2026, the group invested EUR 3.7 million in total in CapEx against EUR 6.8 million in the first half of 2025.
CapEx is almost back to recurring levels, EUR 3.1 million of recurring investments and only EUR 0.6 million of non-recurring CapEx following residual spending on the quarter expansion against the EUR 4.3 million of non-recurring CapEx in H1 2025. This confirms what we said at the beginning of the year. The investment plan launched at the end of 2022 is completed, and from 2026 onwards, investment are back to a physiological level in the region of 5% - 6% of sales, including the R&D component related to both motorsport and the defense industry. Within the EUR 3.1 million recurring CapEx, about 50% is capitalized R&D, in fact, and 50% is related to tangible assets.
About capitalized R&D, 0.9 is for the homologation of new products for motorsport, including the new FHR, frontal head restraint system, and 0.7 is related to development for multiple projects expected to be completed between the end of 2026 and the first part of 2027. Tangible CapEx of the first six months may relate to investments in plant machinery and equipment, mainly in Bahrain, to increase the production capacity of helmets for motorsport and defense. Moving to net working capital. At the end of June, it stands at EUR 34.2 million, EUR 5.5 million higher than the EUR 28.7 million at December 2025. This is mainly driven by a seasonal dynamic, and it is explained by three factors.
First, trade receivables increased by EUR 4.5 million from EUR 13 million to EUR 17.5 million, reflecting the seasonality of turnover with higher sales in the first part of the year, and also a slight increase in average collection days, which is related to a limited number of contracts with leading car manufacturers and very top teams in motorsport. With some of them, we have also payable position arising from technical partnership agreements that will be compensated by year-end. Also, a most important part of the outstanding receivables has already been collected since June 30, and we expect the remaining in the coming months. Second point is inventory.
That was substantially flat as a result of the combination of the reduction of finished goods and work in progress of EUR 1.1 million, consistent with the seasonality of the business, offset by the growth in raw materials of EUR 1.2 million, following our decision to bring forward in the first half of 2026 the procurement of materials for next season's production. In detail, this increase in raw materials mainly relates to fabrics. The goal here is to anticipate in Q3 and Q4 the production of standard suits for the next season, so we can free up production capacity at the beginning of 2027 for manufacturing custom suits, when demand from teams and drivers will peak ahead of the start of the new racing season, and thanks to the new agreements we have in the pipeline.
The third factor explained the variance in net working capital is trade payables, which decreased by EUR 1 million from EUR 15.4 million to EUR 14.4 million, mainly as a result of the payments related to the procurement carried out at the end of the previous fiscal year, reflecting as well the seasonality. Next slide, number 11, is on cash flow and net financial position. Cash flow from operations was EUR 5.1 million in the first half of 2026 against EUR 7.6 million in the first half of 2025. About this variance, I want to highlight that the underlying trend is stronger than the headline. Cash flow generated by operating activities before changes in net working capital was EUR 10.2 million, up from EUR 8.4 million last year, so +EUR 1.8 million, fully consistent with the growth in the EBITDA.
The difference come from net working capital, which absorbed EUR 5.5 million in the half year against the positive contribution of EUR 0.8 million in the first half of 2025. As explained in the previous slide, this absorption is linked to the growth in sales and is largely a timing effect. As on one side, receivables from leading car manufacturers and top teams, which we expect to collect and have in part already collected in the second half of the year. And on the other side, raw materials purchased in advance for next season's production. For both reasons, we expect net working capital, and therefore operating cash flow, to progressively improve over the coming months. With the investment plan now completed, our focus for 2026 and the following years is to maximize free cash flow after CapEx, further strengthening the group's financial position and value creation.
The net financial position at the end of June is EUR 9.1 million against EUR 7.8 million at the end of December 2025. The increase of EUR 1.3 million is mainly due to EUR 5.5 million of net working capital absorption as described, EUR 3.7 million of CapEx, EUR 2.6 million of dividends paid to shareholders in May 2026, net of the EUR 10.2 million of EBITDA generated in the half year, assuming as a simplification EBITDA equal to cash, with the residual difference due to leases, interest, and other minor items. The current financial resources provide the group with a solid foundation to support not only the expected growth in the motorsport segment, driven by increasing demand and ongoing investments in innovation, but also the implementation of the diversification program, which is aimed at expanding the business portfolio and creating additional long-term value for our stakeholders.
Now, I give the floor back to our Group CEO, Paolo Delprato, to continue the presentation with an update on our Milipol projects.
Thank you, Roberto. Let me now update you on our diversification project and specifically on our Milipol projects. These are carried out under the HPS brand, High Protection Systems, and they are our diversification into defense, law enforcement, and aerospace. The idea is simple. We take the know-how we have built at the top of motorsport for decades with the Bell and OMP brands and apply it to markets where safety and performance are just as critical. The first project is the next generation Pixel Wing helmet for the U.S. Air Force. This is a technology transfer from Formula One to the cockpit. For safety, it uses energy management structures from racing applied to protecting our crew. For performance, it uses our F1 know-how in the lightweight shells, sizing, and fit.
For the process, we moved from handcrafting to water-jet precision, meaning industrialized, repeatable manufacturing at aerospace tolerances. On timing, the product was finalized end of 2023 when we won the tender with the LIFT Airborne Technologies and with the first pre-serious deliveries in the following years. Sales started with the first partial delivery in 2025 and 2026. It continued in 2026. We expect the ramp-up to start end of this year, early next year, and the production to be in full swing starting the second part of 2027. The second project is the RH1.0 Riot Helmet for police forces. It is designed as a modular system that combines the helmet, the communication system, and the respirator mask. It brings racing-derived solutions into the law enforcement world. A lightweight, flame-retardant shell, an F1-proven anti-fog and anti-scratch visor, and our patented, and this is novelty, our patented iFix system.
The milestones are on track. We launched the HPS brand in Q1 2025, obtained the homologation and won our first public tender in Q2 2025. In the first quarter of this year, we exhibited at the Riyadh and Nuremberg trade shows, and certification with gas mask is expected this year, within the end of this year, and new tenders are expected in 2027. The third project is the Gladiator family, a full range of SWAT and military ballistic helmets in high, mid, and full cut, developed to VPAM and NATO standards. They are fully compatible with headsets, CBRN mask, and night vision equipment, and they also feature the patented iFix system, our technology. In 2025 and 2026, we introduced the range to the market and completed ballistic testing, achieving further weight savings. We expect to complete all R&D this year, Q1 2027, for the first helmet.
In 2027, we expect the progressive homologations and certification, and the production ramp-up, the start of commercial activity, and new tenders. In summary, 2026 is the year we completed the groundwork, and 2027 should be the first year of significant contribution from these projects, all the Milipol projects. Now let me conclude with the outlook in 2026 and 2027. The positive momentum continues into the second half of this year. Sales in the first part of H2 are growing significantly compared with last year, and demand remains solid. We remain confident about the second half, even against a tough comparison with a particularly strong H2 2025. We are, of course, monitoring, as Roberto said, the geopolitical situation closely in the Middle East and in Ukraine. The risk remains high, but so far, its impact on our results has been marginal.
The bigger picture is that motorsport continues to show structural growth. Audiences are expanding all over the world, and interest in the United States keeps growing, driven by F1. The Americas grew by more than 40% in the half and remain a key growth area for the group. A few recent developments are worth highlighting. In July and August, Zeronoise Communication Services won a multi-year Formula E contract. It will contribute from the second half of 2026, last part of 2026, and fully from 2027. We also completed our first delivery for an F1 circuit, MADRING in Madrid, a few weeks ago, and incorporated a new U.K. subsidiary to provide radio communication services to racing series and teams in U.K. In August, the Board of Racing Force USA approved the five-year lease extensions in Mooresville, North Carolina, with an option for a further five years.
It includes an expansion of about 12,000 sq ft at the landlord's expenses. In the meantime, our Corona facility in California is now fully operational. In September, OMP won another WRC title, World Rally Championship, confirming it as the most successful safety equipment brand in the history of the World Rally Championship. Looking ahead to 2027, we expect another year of growth again. It will be supported by one more top F1 team, continued growth across all our motorsport brands, including Zeronoise Communication, and the first significant contribution from the Milipol project. Thank you for your attention, and Roberto and I are now happy to take your questions. Are there any questions? Domenico.
I have a question on the outlook you have provided, on the comments you have provided on 2027. It is still early stages, but just to understand your feeling on the key contributors. You mentioned several growth drivers for 2027. In your view, what can be, say, the ranking, if I may, on the contribution of these growth drivers? What are the priorities and the largest opportunities for 2027?
As you know, Domenico, we come from a very important period with a very important growth in the last 18 months for the group, and this growth comes only from motorsport in the end. We see 2027 with another year of growth for motorsport. Probably not so strong like in the last 18 months, but a significant growth again. Then in 2027, as I said, we are going to have the first effects coming from the Milipol project and in general from diversification projects. We did not say anything about Zeronoise, not only Zeronoise Communication, where we said that we won this important tender with Formula E and also we are developing other projects like MADRING and probably new circuits. They will come in the coming months, but at the same time, we are bringing the Driver's Eye technology also in other sports.
Just during these days, we are testing the Driver's Eye in other sports, like American football, for example. This can be also another driver for increasing our growth in 2027. In general, in a few words, we expect another year of important growth also in 2027.
Okay, thanks. A second question is on the group structure. You were mentioning in the press release, if I am not wrong, something like 97 people added on average in the first half. How do you see now the group structure to cope with the additional demand coming in 2027? Do you need a larger step up or you are set up also with the existing capacity?
It depends, obviously, which growth we are going to have in 2027. Because there are some activities that can create efficiency, but other activities where it is very difficult to create efficiency. I give you an example. Making a helmet made with composite material, carbon or fiberglass, means a lot of hours of a person or more than a person to complete the helmet. It is impossible to use automatic machines to produce these kind of products. Clearly, if this a custom production for a few products, a few items, means that it is easy for us to produce, but this needs a lot of efforts to produce it, to produce the helmets. If a big series like we expect from Milipol, obviously in this case, we can create more efficiency.
For 2027, if the contribution from Milipol project will be significant as we expect, obviously we are going to create more efficiency from a labor cost point of view.
Okay. Thank you.
Corentin.
Corentin, I think he has a question.
Yes. Hi, guys.
Hello.
Yeah, question from me on the Milipol project. First, on the Riot Helmet, have you already identified some tenders where you can participate at the beginning of next year and, if yes, can you provide maybe a range of the size compared to the one you already won with the Dutch Ministry of Justice and Security? The second question on the Gladiator helmet, if I remember correctly, it relies more on direct negotiation with the police forces more than tenders. Just if you can confirm, and if you have negotiation already in place with some police forces.
About Riot Helmet, the fundamental point now is to obtain a certification. Without certification, we cannot participate to most of the tenders. Up to now, we are not dealing for any tender. We are waiting for this certification. As I said in the presentation, we are going to have a double certification, the version of Riot Helmet without the iFix system and the one with the iFix system. That is a patented technology that we introduced recently. This is a technology that permits to adapt the size of the helmet to different sizes. This will simplify significantly the purchasing activities from police departments. This will be a very important point for us in selling our products. For Riot, the next step is to obtain this certification. As I said, we expect to obtain it within the end of the year.
Now we are there and then in the meantime, we are speaking with some countries, we are speaking with some police. There are some police department who are testing our helmets, but nothing tangible that I can say at the moment, but we are making these tests for sure in some countries in Europe. At the same time, we received also interest from some Middle East countries, but the answer is always the same. As soon as you have the product certified, let us know and we start the negotiation. About Gladiator, the situation is similar. We are going to have the first helmet homologated the end of Q1, early Q2. In some cases, you go through tenders, for example, for military helmets. In other cases, like the ones for SWAT team with some countries, you go with direct negotiations.
Also, in this case, we are speaking especially with SWAT teams in some countries in Europe. Also, in this case, the answer is the same. As soon as you have the helmet homologated, let us know and we start the negotiation. But in general, I can say there is a lot, but really a lot of interest on our helmets because they are really state-of-the-art in terms of features in this business, in this market.
Okay. Thank you, Paolo.
Domenico?
If I may, just a follow-up on the Air-Fit technology.
Yeah.
Do you see something similar in the market? Or how innovative is the solution?
Yeah. There is a competitor that introduced recently a technology that can permit to adapt the helmet to different sizes. It is using the same technology that you find in other products like cycling shoes, for example, it is a rotor technology. The main problem of this technology is that to use this technology, you have the system on the back of the shell, so you have to make a hole in the shell, and in terms of safety, this is not useful because if a policeman receives, I do not know, some acid liquid, for example, they can penetrate the shell. The second point, that using this technology, you have a point on the back of the shell where during a riot, a person can take the helmet, and so also in this case, it is not so useful.
Third, the cost of this technology is very, very high because in this case, it is a patented technology not from this manufacturer, but from another company not involved in a helmets manufacturer. So you have to pay a very high license fee. So we think that our solution is much, much, much better than the one introduced by this competitor. This competitor is the only one that has something similar to what we are introducing. Last point, our technology is more flexible, so with one shell, for example, you can adapt the helmet to all the sizes, okay? From a 64, 65 to 48. With other technology, this is not possible.
You can imagine a purchasing department from the police, obviously, they are super happy when they have to buy one or two shells maximum without being worried about the sizes, because buying the one or two shells, they can cover all the sizes for all the policemen, so this is a big advantage for them, clearly.
Thanks.
I think there are no more questions. So thank you all again for joining us today and for your continuous support. For any further questions, Roberto and the investor relations team are available. See you next time. Thank you.