Good morning, ladies and gentlemen, and welcome to the Conference Call for the 2025 Results. I'm here with Daniele Misani, Group CEO, and today we will present the main business updates. We will have a deep dive into the financials of the year, and we will have a section for the Q&A. As usual, there is a let's say area for dropping your question, which will be answered at the end of the call. This call follow the one occurred two weeks ago for the preliminary results, and in a couple of seconds, we will start with the presentation. Thank you for your time and for attending the call.
Thank you, Andrea. This time we don't have to switch to Berlin. You are in Milano, so we are happy.
Yes.
Very good. Welcome everybody to this call for the results. As said by Andrea, we did also a call for the preliminary results two weeks ago. Today we will go through an update of the main KPI, and we will have a more overview about the financial below the EBITDA, related to the net profit and to the net financial position. With some updates and some flavor of what happened in 2025. We presented two weeks ago the preliminary results in terms of top line and EBITDA. That was record results with almost EUR 400 million in revenues in growth of 29% with respect to the last year.
Solid organic growth +12%, and EBITDA of EUR 60 million, +53% with respect to last year, with stronger margins of 15%. We confirm fully the preliminary results after the auditor review. In terms of top line and EBITDA, it's a full confirmation of what we have already presented two weeks ago. Looking below the EBITDA, the EBIT adjusted , the consolidated operating profit is almost EUR 50 million. It's 12.1% of the total revenue. Strong growth faster than the growth of the EBITDA, because we recorded 61.2% more than last year. The adjustment in general of these figures is related mainly to the PPA.
All, let's say, the investment we did for the M&A that had an impact on the, let's say, KPIs, and we are presenting the adjusted one. For the net profit consolidated, adjusted is EUR 34.5 million. That is equal almost 9% of the total revenues. Strong growth with respect to the last year, +72.4%. We, let's say, proposed after the discussion with the Board of Directors, a dividend that is, let's say, increased with respect to the last year of 40% more than last year, EUR 0.35 per share. The dividend is increased according also to the better results related to the net profit of the company.
For us, it's also strategic to return some part of the benefit the company does also to the stakeholders, so to all the shareholders that will benefit of this increment of the dividend. As you know, we are, let's say, a company very focused on the fundamentals of the main business industrial KPIs. Our, let's say, also stock and our investment in our company is a mid long term. We have a multi-year plan. There are, let's say, uncertainty about the macroeconomic situation, about the possible impact of AI. As I said also in the past, we are very confident to continue to perform well in line with the guidance of our industrial plan. We continue to invest.
For us, also, AI is an asset that we integrate in our Smart Solution business. Our vertical platform that are AI native or AI empowered, because we want to be, let's say, at the edge of the innovation for our customers. Let's say, the business and the total investment last year entirely expanded was EUR 23 million in growth with respect to the previous year. The Smart Solution revenues, so the revenues coming from our intelligent platform is growing according to our strategy. Last year was EUR 93 million, is almost 25% of the total turnover of the group. This part is for us is strategic because position ourself in a core business of customers.
Our assets, let's say, are, let's say, for us, a strategic point in order to enter, create relationship and have a lock-in in the big customers, because we insert our technology in their core processes and the core products towards the market. International revenue are EUR 65 million, 16% of the total, and the debt is sustainable. According to the plan, we gave, let's say, a threshold of 2x EBITDA, so we are below. Last year, we continued to invest also in extraordinary, let's say, acquisitions, so adding competencies and software to our portfolio. The total adjusted sustainable debt is about EUR 99 million.
As you know, we are continuing to implement our buyback plan to acquire our own shares in order to do further M&A and to have, let's say, the possibility to engage other companies in our platform, in our proposition. The total amount of treasury shares in euro is about EUR 10 million. In terms of debt, then Andrea will go deeper about the bridge of what happened during 2025. Let's say we are completely in line with the expectation, and we had also a very good cash conversion, especially in the last part of the year, which we implemented several mechanisms in order to improve the overall cash in of the group. This gave us, let's say, a slight increase with respect to the last year.
The important point is also the last quarter, because nine months and full year results show the benefit of the actions we have taken for cash injection within the group. We are confident to continue to have the financial stability, to continue to invest and to implement our, let's say, sustainable plan of growth by adding more companies during 2026. In terms of, let's say, industry, the growth is driven during 2025 mainly due to the strategic areas in which we are present, in particular government and aerospace and defense, that recorded together a growth very strong, almost 20%, mainly also organic because aerospace and defense is growing organically very strongly.
We are well positioned in this kind of market segment that are markets in which, let's say, there are a lot of constraints related to regulations and technology adoption. We also have a vision for 2026, short term, but also mid long term positive for the positioning we have and the, let's say, spending of this industry in which, let's say, our competencies, our Smart Solution and also the AI adoption are starting. We can play a role important in order to keep our position and to continue to grow. We expect also for 2026 a continuous growth of these two areas, these two end markets that cover for us half of the business, more or less, that will continue to grow.
The backlog that we have, the position that we have, make us confident to keep continuing in this area. Also, the other areas are growing according to the expected growth we declared in our business plan. Let's say also strategically, the telco industry, that is a nice pending industry. We keep a good position in continuity with the past. Of course, we are, let's say, pushing also resources, competencies and investments towards the strategic market, end market like government and aerospace and defense. The guidance we confirm we already presented two weeks ago. The EBITDA expected the like- for- like of 2026 will be a 10% more of what we recorded in 2025.
That is, let's say reachable according to the backlog and the projects that are ongoing. We plan to have an organic growth, a top line in growth of almost additional EUR 40 million. A 10% growth in the total turnover of the group. We continue to invest in M&A, in aggregating competencies as Smart Solutions within our portfolio. We are currently working on several opportunities. In the plan we have to consolidate at least EUR 6 million from new acquisition that we will perform mainly in the first half of the year. They are ongoing. We plan to close during the first half additional aggregation that will increase our total, let's say, EBITDA for 2026.
In terms of evolution, we said already something two weeks ago, and I want to highlight two particular initiatives and results that we achieved during the first quarter of 2026. In particular, let's say the business coming from the strategic acquisition of the SmartRoutes technology in the U.S. that has been let's say completed a few weeks ago and is already operational. In terms of integration with the current team we have already in our PACE group, that is the international company providing advanced solution for the aerospace and defense market. Last month, we closed the acquisition, we completed the acquisition of the technology, and we already have, let's say business coming from the integration.
Of course the acquisition was done strategically in order to capture and to have, let's say, the full stack of technology to provide to a pipeline of new customer. It's important to highlight that in the first quarter we signed two important contracts with two different airlines that are among the top five airlines in U.S. These contracts as a business model that is recurrent revenues related to aircraft that will use our technology and is expected to come from these two new contracts, a recurrent revenues stream of about EUR 10 million at regime, probably during 2027 and over.
It is strategic for us because we are already a very well-recognized player in order to do sustainable green flights in terms of saving fuel and have a better, let's say, operation in terms of airline operations with a solution that is historically on board in the cockpit of the aircraft. The acquisition of SmartRoutes allow us to also integrate a solution dedicated to dispatchers, so the control tower that manages aircraft. Our solution is a platform to create real-time communication between the aircraft and the control room in the airline's business. That allow us also to create and build upsell opportunity because we are in as a key software in terms of functionalities that allow a better planning, a better operation of the aircraft itself.
For us, strategic also the positioning in order to continue to grow and put additional business to the one that we have already. Another, let's say, highlights, focus on an investment we did in 2025 to create, let's say, research labs within the TXT Group. We are pleased to announce because it will be presented formally at the end of this month. The Futura Innovation Lab project is a project in collaboration with the Politecnico di Torino that is part of this initiative. That initiative also partially funded by the PNRR to create labs in order to do applied research. The main focus is related to technology and application within the aerospace and defense domain.
This initiative allows us to open up two labs, one in Turin, near the Politecnico in our, let's say, offices, headquarters in Turin, and another lab that will be here in headquarters of Milano. Let's say the goal of these labs is to bring technologies to develop, let's say, you know, new related to AI, to XR with a strong collaboration with the Politecnico. We will bring talents, students over there that will work together with our R&D department in order to apply these technologies in real use cases for customer.
Enhance the Smart Solutions portfolio that we have already and prepare the new generation of technology and people in terms of competencies that allow us to have, let's say, a boost with respect to the technology enhancement of solutions for the market that is coming. The labs will have, let's say, some focus related to the technologies like extended reality, artificial intelligence, simulation, and one subset of activities related to drones that are, let's say, a possible increase of our offering in a domain in which investments are always, let's say, needed in order to be on the edge of the offering for the market itself.
The total, let's say, investment for the labs is almost EUR 4 million in terms of CapEx in general, but also acquisition of technologies. They will be fully operative starting from Q2 2026. Thank you very much for listening to these updates.
I let Andrea to focus on the financial, especially, related to the part below the EBITDA. Andrea.
Yeah. Thank you, Daniele, and welcome again. We are entering into the financial section of this conference call. We start from, let's say, a quick refresh of our top line and EBITDA. Again, top line grew 29.5%, and this was driven by all the three main divisions, especially Smart Solutions and Digital Advisory performed well in the year with, let's say, targets in line or above for Digital Advisory, compared to the targets set in the Capital Markets Day.
In terms of gross margin, we can see an improve. It grew from 33.5% in 2024 to 38.1% in 2025, thanks to the operational efficiency, but also to the repositioning towards, let's say, more added value activities and the termination of the one-off activities that were, let's say, delivered in 2024 with a lower, let's say, gross margin. In terms of indirect costs, as broadly discussed by Daniele, we keep investing into our technologies, into our Smart Solutions, into, in general, into R&D. R&D was more than EUR 23 million in 2025. We'll expand it, of course, into the P&L with a 56.5% growth compared to the previous year.
Commercial costs also grew significantly, +43%, and this is, let's say, related to all the commercial marketing investment that the group is undertaking in order to support the strong and fast top-line growth. In terms of general and administrative costs, in 2025, they were at 7.1% of revenues, basically in line with the incidence of the same costs in 2024. If we look at the costs, let's say below the EBITDA into the next slide, we have a bridge showing, let's say basically, what brings from the EUR 60 million of EBITDA to the net profit of EUR 25 million.
In particular, there were EUR 6.8 million of IFRS 16 leasing equal to 1.7% of revenues and, let's say growing by 49% compared to the previous year. Also included EUR 2.8 million of depreciation other than leasing, so at 0.7% of the top line. Looking at the amortization and of intangible assets and write-offs, including, let's say, EUR 0.9 million of organizational costs, this stood at EUR 2.6 million in 2025. The EUR 0.9 million of organizational costs were mainly related to the plan, including to the industrial and public sector following the acquisition of Webgenesys and, let's say the standardization, let's say of processes and governance into, let's say, into this key vertical of the group.
From the EBIT adjusted, which excludes of course the amortization coming from purchase price allocation. We had EUR 47.8 million with an increase of 61.2% compared to the previous year, which is equal to a 12.1% of revenue. Very positive results compared to the approximately 10% incidence in the previous year, 2024. If we look at the financial results of the group, we have a strong increase of 48.3% of interest and financial charges that are related, let's say, to the new loans entered into by the company.
Those are of course related to the acquisition into, let's say, the M&A plan that was, let's say, brought forward by the group in end of 2024, second half of 2024 and 2025. In terms of financial income, which total to approximately EUR 2.7 million gross. There is EUR 1.6 million related to M&A income, which are mainly, let's say, the adjustments of the earnouts paid in the year or the adjustment of the fair value of the earnouts to be paid in future years.
In terms of FX losses, we have EUR 0.8 million due to the trend of the U.S. dollar in 2025. This is to be compared with a positive FX gain in 2024 by approximately EUR 0.2 million. Income taxes were EUR 7.8 million, with a lower tax rate compared to the previous year, and this effect is driven by Patent Box and other tax benefits linked to new hiring, which includes also benefits coming from the previous year, but accounted for and let's say, received only in 2025. From 2026 onwards, the tax rate, it's expected to return to, let's say, a standard 29%-30%, let's say, tax rate.
The net profit adjusted is EUR 34.5 million at 8.8% of the top line, which with a very, very significant growth compared to 2024, and in particular, the net profit adjusted rate in 2024 was 6.6%. Very significant growth in the year. In terms of net profit, let's say the growth is slightly, the percentage growth is slightly, let's say, lower compared to the adjusted result because PPA grew from EUR 4.1 million in 2024 to EUR 9.2 million in 2025, with the net profit reported at 6.4% of the revenues in 2025.
Going to the next slide, we have an overview of the last quarter of 2025, which was very, very positive, let's say, which also compensated the first nine months in terms of targets disclosed during the Capital Markets Day, with let's say the business plan, the three-year business plan that the group presented. In fact, we have a very strong growth of top line of 22.8%, despite. We grew so very, very significant organic growth in the period. Here, let's say the KPIs are basically confirmed.
Of course, the growth of R&D costs are, let's say, lower than the full year because companies such as ProSim, Refine are included in the perimeter, both in the fourth quarter of 2024 and in 2025. While let's say the other KPIs are confirming the performance of the year. In terms of general and administrative cost, of course, in the last quarter of the previous year, 2024, there was strong, let's say, contribution coming from the M&A effort for the acquisition of Webgenesys. Of course, the EBIT, we have, let's say, a seasonality of the business also coming from the previous year. This year is particularly strong.
In fact, the EBITDA margin stood at almost 17% of the top line, and this effect also benefits from the strong sales of licenses in the Smart Solutions businesses that of course contributed a lot to the strong performance recorded in the last quarter of 2025. In the 10-year-- it's also important to notice that the strong increase of PPA, so that of EUR 3.5 million in the quarter, includes the full year of PPA linked to the acquisition of Webgenesys. This is not, let's say, an amount, a recurrent amount that we expect in each of the quarter, but approximately EUR 10 million on a yearly basis, it's the results that we expect also for future years.
Of course, we have positive results also coming from the share of profits from associated companies, which after negative nine months and a negative 2024, are now positive with about EUR 0.2 million of effect. Here we can see the benefits from a tax point of view were all accounted for in the fourth quarter of the year after the confirmation of tax credits and Patent Box received for both 2025 and 2024. The net profit reported at 8.8%, it's a very positive results with 150% growth compared to the previous year.
Of course, the lower tax rate has also a strong impact. In terms of net profit adjusted excluding the PPA, we can also, we are proud to report, let's say, almost a 12% rate in the quarter. Going to the next slide, there is a, let's say, a picture of the net debt as of the year-end 2025 with a comparison to the year-end 2024. Here among financial assets, we have EUR 103 million of cash with a significant growth compared to the previous year. This is also because the group, let's say, entered into new bank loans. In fact, bank loans in a net debt by nature show a growth of overall bank loans by approximately EUR 44 million as well.
This is cash that will support, let's say, the M&A plan expected to be executed, in this first, let's say, half of the year and for the entire, let's say, 2026. We have already, let's say, the cash to execute the plan that we have in our, let's say, pipeline. In terms of, let's say, short-term financial debts, of course, the stronger growth, so we have a net, let's say, cash of EUR 45 million, significantly higher than the same results at year-end 2024. As I said, let's say, here includes the money that we will be investing into the M&A plan. While in 2024, there was the cash out related to Webgenesys. The short-term financial cash was significantly lower.
Looking at the financial liabilities, as I mentioned before, there is a growth of EUR 43 million, which includes, let's say, both short-term and long-term financial debts, and the bank loans stood at approximately EUR 200 million as of year-end 2025. IFRS liabilities, so IFRS 16 liabilities related to leasing are at EUR 18 million, of which EUR 12 million more than 12 months, long-term. The overall growth of IFRS 16 liabilities is of EUR 3 million, of which EUR 1.5 million related to, let's say, more than 12-month IFRS 16 debts. In terms of earnouts and put and call debts, there are included, let's say, approximately EUR 11 million compared to the EUR 9 million of 2024 with a net increase of EUR 3 million.
We have also, let's say, advances on invoices, which are, let's say, financial liabilities for EUR 4 million. The total financial liabilities, looking at net debt, by nature, stood at EUR 231 million versus EUR 185 million of 2024 with a net increase of EUR 46 million. We have also in the adjusted financial debt, there is a, let's say, the value of Banca del Fucino for which the group still has a binding proposal for the acquisition of a stake of approximately half of the overall investment. The decrease of approximately EUR 0.4 million is related to the value that is reflected in this, let's say, binding proposal.
Let's say, this, the timeframe of this proposal is shifting a little bit to the right, so to the future, to be conservative, the group decided to not reclass for this specific, let's say, period the portion covered by this binding proposal into financial assets, and instead it's included into the long-term assets. Into our reclassed, let's say, picture, this is part of our adjusted net debt. Overall, the adjusted net debt as of year-end 2025 is about EUR 99 million with a net increase of EUR 8 million. This increase is from the next slide where the bridge of the net debt as of year-end 2024 compared to the year-end 2025.
Here we can see that the major contribution of this decrease is linked to M&A, including the 2024 PPA effect, including let's say the deferred tax effects on such acquisitions. While if you look at purely at our operating cash flow, this is positive of about EUR 40 million with a 75% operating cash flow, let's say, conversion on EBITDA. In fact, let's say the 2025 EBITDA of EUR 60 million is partially offset by income taxes paid in the period and net working capital and, let's say, other provisions effect for about EUR 9 million.
Also the net working capital in the last quarter of the year performed well, and we have, let's say, a strong collection of receivables. Let's say, better DSO compared to the first nine months of the 2025 year. In terms of free cash flow, there are EUR 6 million related to ordinary CapEx, but there are additional EUR 3 million that were, let's say, not budgeted in our industrial plan, but are related to the Futura Labs project described before by Daniele. Those EUR 3 million are expected to be partially recovered from, let's say, the National Recovery and Resilience Plan in 2026. In terms of leasing payments, there were about EUR 7 million of payouts, which bring a free cash flow conversion at about 50% of the EBITDA.
Looking at the other main items of the other expenses that brought the EUR 8 million difference in the net debt occurring here, we have, of course, interest and bank charges paid for about EUR 6 million, partially offset by the positive results coming from the financial income linked to M&A, so the adjustment of some fair values of earn-outs. We have the famous EUR 4 million of buyback that was implemented during year 2025. The more than EUR 3 million dividend paid in the year.
The already mentioned EUR 3 million of overall effect coming from M&A, including also deferred tax and PPA of 2024, and additional earn-outs accounted for in the period for more than EUR 1 million, and the residual, let's say, effect of EUR 4 million. Looking at the next slide and the balance sheet of the group, we record a significant increase into the fixed asset, which as of December 2025 total at EUR 244 million, representing an increase of EUR 29 million compared to year-end 2024. Intangible fixed asset amounted to EUR 881 million, with an annual increase of EUR 22 million compared to 2024.
Within this category, goodwill totaled under EUR 30 million at December 2025, showing a net decrease of EUR 7 million compared to the previous year. The decrease occurred despite the recognition of EUR 17 million of goodwill related to the acquisition, including IT Values, that were closed during year 2025, and reflects the purchase price allocation adjustment of Webgenesys, Refine, and the Imille acquisition recorded in 2025 that were, let's say, considered as goodwill and allocated into other intangible assets. In fact, the increase in intangible assets during the period is mainly related to customer relationships and intellectual property assets allocated from goodwill with a net increase of EUR 24 and EUR 4 million, respectively.
In terms of tangible fixed assets as of December 2025, they amounted to a total of EUR 34 million, representing an increase of EUR 5 million compared to year-end 2024. The balance mainly consists of office and car leases recognized under IFRS 16 for a total of EUR 19 million, one building with a net book value of EUR 4 million, laptops and other electronic equipment for a total of EUR 3 million, and tangible assets under construction for additional EUR 3 million. Assets under construction mainly relates to investment in the Futura Innovation Lab, which was previously presented by Daniele.
The total investment in the project has exceeded EUR 4 million to date, and the project is co-funded under the National Recovery and Resilience Plan, Mission 4, and the funds expecting to be received by TXT in 2026 are not yet reflected in the group's consolidated balance sheet of TXT as of year-end 2025. Other fixed assets as of December 2025 are of a total EUR 29 million, with a net increase of EUR 2 million compared to the previous year. The balance mainly include the investment in Banca del Fucino, with a total fair value of EUR 18 million, in line with the previous year. Looking at the net working capital, stay on the previous slide, please. The group consolidated net working capital increased marginally, with a net increase of approximately EUR 0.5 million.
Work in progress and trade receivable. In work in progress, I'm referring to inventories, which for us are fully, let's say, work in progress with customer. Trade receivable increased by approximately EUR 18 million in total, reflecting the group's top line growth during the year. At the net working capital level, this increase in inventories/work in progress and trade receivable was largely offset by higher tax payables and other payables.
Tax payable increased by approximately EUR 10 million, consisting of EUR 2 million related to higher current tax payables, and about EUR 8 million related to deferred tax provision for the recognition of deferred taxes on asset acquired in 2024 from Refine, Imille, and Webgenesys S.p.A. Other payables, which are, let's say, the other main liability increasing by approximately EUR 10 million, mainly includes amount due to employees and subcontractors, including social security contribution and payroll taxes, as well as, accrued liabilities and deferred income and advances on multi-year contracts. The above mentioned increase of about EUR 10 million reflected the growth of the workforce during the year. It's mainly related to employees.
Other changes, of course, in terms of shareholder equity, the change reflects the net results of the period and mainly the effects coming from the buyback and, let's say, the changes in treasury shares, and net financial debt was widely discussed before. Looking to the next slide, starting from the bottom left of the slide, we have the shareholding structure as of year-end 2025. Let's say in line with the one disclosed over the investor call for the nine-month result. Laserline being the financial vehicle of Enrico Magni, Chairman of TXT, owning 30% of the group. Then we have managers with approximately 24% stake.
Management includes, let's say, all the shareholders which were previous owners of the company acquired by TXT during the M&A plan started more than six years ago. Free float with a 40% stake. We have treasury shares at about 2.6%. Looking at the top right of the slide, dividends and treasury shares repurchase. In 2025, we have the already disclosed EUR 3.9 million, let's say, cash out coming from repurchase of treasury shares and dividend, the payment of the dividend for the EUR 3.2 million, for a total of EUR 7.1 million.
If we look at the performance of the TXT stock during 2025, the TXT share price reached a high of EUR 41.25 per share on February 25, 2025, and a low of EUR 28.75 as of April 4, 2025. At the end of 2025, the share price was EUR 30.45 per share. As of December 31, 2025, so year-end 2025, treasury shares amounted to approximately 334,000 shares, representing 2.6% of issued shares. For comparison, treasury shares were 314,000 as of the end of 2024, and the slight increase reflects the share buyback program, which more than offset the transfer of shares used in the context of M&A transaction.
During 2025, TXT repurchased approximately 115,000 shares at an average price of EUR 23.83 per share for a total investment of approximately EUR 3.9 million, as I said before. In terms of dividends proposal, for 2026, based on the 2025 results achieved by the group, the Board of Director proposed to the shareholder meeting the distribution of a dividend of EUR 0.25 per share, calculated on outstanding shares, excluding treasury shares. That corresponds to a total expected payout of approximately EUR 4.4 million. As already mentioned by Daniele, the proposed dividend represents a 40% increase compared to the dividends distributed in 2025 and corresponding to a dividend yield of approximately 1.2%.
The dividend payment date is scheduled for May 20, 2026, with the record date on May 19 and ex-dividend date on May 18. Thank you so much for your attention, and now we will go through any question that we received.
Thank you, Andrea, for the explanation about the financials. We can go through questions that we received from the audience. I ask Andrea maybe to publish the q uestions and go through them.
Yes. Just a second.
Okay.
We can start from Andrea Randone.
Yes.
Are you expecting to partially use your treasury shares as you did in the past to pay for acquisition? What do you expect will be the leverage ratio at year-end 2026?
Yes. Our strategy is to have, let's say, a full commitment about, let's say, entrepreneur not selling their company, but changing the shareholding, their own shareholding structure, becoming, let's say, shareholders of the group. Because we have one strong point of our strategy to have the top management that is made by entrepreneurs that allow us to move fast also with respect to the competitors. For us, it's strategic to continue to use this kind of a model by using the treasury shares to get involved the entrepreneur, let's say, that aggregate the company within the group. Yes, we will continue to use the treasury share we acquired in order to do further acquisition during 2026.
Yes. In terms of the leverage ratio, we confirm the guidance, not to exceed 2x the EBITDA. According to our plan, of course, the EBITDA will increase in 2026. We have more space in order to have a sustainable leverage. We plan not to exceed 2x, means that cash generated and investment will balance in some way in order to continue in this strategic sustainable path that we are already implementing.
Thank you, Daniele, for your answer. We have another couple of questions coming from Andrea Randone.
Publishing.
Yeah. Can you remind us, the details of your buyback program? Are you going to ask, the Annual General Meeting a renewal of, buyback authorization?
Yes. Our buyback is approved during the shareholder meeting. We plan to propose again, let's say, the same model we implemented in the last five years. Because for us the buyback is strategic in order to continue to have our own shares to engage new entrepreneurs within our Futura project. Yes, during the shareholder meeting would be a renewal of the, let's say, plan that we are currently implementing.
Thank you, Daniele, for the answer. Again, another question from Andrea Randone. In the Smart Solutions segment, you are ready to benefit from your investment in the Smart Sensors business. Can you provide an additional comment on this business? Can you give us an idea about the innovative ideas you are working on at the moment for future applications?
Yes, our Smart Sensors business is already in the group since few years because is, let's say, driven by our German entity, TeraTron, that is producing smart system for the market. What we did in the last six months was to integrate more this kind of solution within our Smart Solutions value proposition to the market, specifically for the IoT OT part, for which we started to be involved in large projects related to infrastructure monitoring and analytics about infrastructure, critical infrastructure, by leveraging on data. We have an offering, and we are already delivering to a main player here in Italy with complex and critical infrastructure.
A full solution coming from the design and the installation and go live of, let's say, monitoring systems that are composed by a software, IoT software platform integrated with a Smart Sensor, partially acquired on the market and partially developed by our own company that is producing this kind of, devices. We are thinking about sensor used to monitor, let's say, acceleration or, let's say, possible faults related to complex infrastructure. They are innovative because they have, a part of analytics already on the board of the sensors in terms of embedded software, and also are innovative, because, the, connection protocols we use with respect to the current existing, market solution.
Of course, for us are strategic because we can be an end-to-end player. We have, let's say, the control of the development, the delivery, and also we have a benefit in terms of overall margins, because by producing them internally, we can have a better margin on the overall project that we already have. This, let's say, contribution of the Smart Sensors is not still in the 2025 result because, as far as today, we acquire on the market and resell part of these sensors. We did the R&D part during 2025 to develop a new generation of sensor that was concluded into the end of 2025. We are currently under the certification of these devices in order to have a proper go-to-market starting from Q2 of this year.
We will have a benefit in terms of margins coming from this kind of initiative starting from the next year. In terms of application, we are speaking about monitoring complex infrastructures like bridges, for example, or galleries or let's say, buildings. We are also in a pipeline to implement it for the oil and gas domain, specifically to monitoring tubes or complex infrastructure involving supply of energy towards the grid. It's one of the driver, let's say, that we see as a complementary growth for 2026 together with the positioning of aerospace and defense and government that is stronger. This initiative related to IoT both in industrial or let's say, complex infrastructure system.
The fintech, let's say, initiative about digital payments are, let's say, our assets we want to push in order to continue to grow and balance maybe possible uncertainty coming from markets more legacy and historical, like pure software development, custom solution or activities in end market like telco that is under, let's say, a general restructuring, general changes, especially in Italy. As we have done also in the last five years, our let's say one of our strong points is to anticipate the market needs and be ready in order to provide a long-term solution and valuable solution to customers. This is what we are doing.
We are working as a management team together in terms of defining good strategies, having a lot of entrepreneurs in our, let's say, team of managers allow us also to have this vision, market connection and, let's say, capability to take risks in order to capture opportunity. We plan, let's say, with this initiative to meet the results we announced in our industrial plan, de-risking also possible areas in which the uncertainty, overall uncertainty will have an impact in overall.
Very good. Thank you so much, Daniele. We have additional question, one from Paul Phelan, asking if you can please present the 2025 earnings per share and the comparison with 2024. In 2025, the earnings per share is at approximately EUR 1.80 per share, while in 2024 was at about EUR 1.20 per share.
One point, sorry?
20 .
Okay.
EUR 1.20 and EUR 1.80 in 2025. EUR 1.83 and EUR 1.24, to be precise. Let's say this is of course calculated to the reported net profit. In terms of dividends, it's almost 20%, so slightly more than 20%. Slightly less than 20% in 2025 as a dividend payout. Also in 2024 was a similar ratio. Compared to the earnings per share, let's say we have distributed or we propose to distribute in 2025, about 20% of it.
Thank you, Andrea. Any other question?
Yeah. We have a question from Andrea Bonfà from Banca Akros. You mentioned potential development of software for drones with your PoliTO Lab partnership. Can you expand on that? Thanks.
Yes. Drones is one of, let's say, the main research, let's say, domain for the, let's say, new project of Futura Innovation Labs. Of course, is a part in which we are still developing technology in this kind. We are in a research phase. So far, we have no revenue stream coming from this kind of domain directly. Of course, we are involved with the main player in aerospace and defense for technology about more complex drones. As you know, the drone environment is quite, let's say, broad in terms of solution, of size, of capabilities and so on.
We already developed during last year a Smart Solution related to mission planning and training and simulation for piloting drone or managing fleet of drones that we are already proposing towards different channels in particular also directly to the government in terms of adoption of this kind of technology. For us is an expansion area with respect to the offering we have more related to aircraft. Adopt the same kind of approaches, methods and needs for let's say the scope of the drone itself. In the past, we did also several research projects in collaboration with many universities in order to start to develop the technology.
For us, the aerospace & defense is one of the, let's say, new streamlines that we want to push and to have, let's say, a market return, probably not during this year, but initially in this year and more for the next year on. Being in this kind of, let's say, domain in which investments are huge also for different kinds of solutions for us was our competencies and our knowledge of the domain for us was necessary also to continue to invest and put technology in this kind of solution. We have this lab that is open, so everybody, also the financial shareholders can come and visit the technology we have today and we are researching on.
It will be an additional asset to our portfolio in order to be more competitive and to be more, to have a stronger lock-in for the end market of defense and aerospace in general.
Any other question?
We don't have any additional question.
Okay. I want to thank you. I want to say thanks also to our team in general, our managers and all the people that are working with us, because 2025 was a record result, but as every previous year, every year we close with a record. I'm very proud to have a strong team made by competencies, know-how, market knowledge. We have an industrial plan for the next three years to be reached, and I am very happy to share, let's say, these goals together with a very strong team. Thank you everybody in terms of internal team. Thanks also to all the shareholders that continue to trust in us, in our capability to maintain this sustainable growth.
I'm-- There are a lot of uncertainty, I know. We are very prudent in general, so because we know possible risks and so on. I am quite confident that with this team and the competencies that we have, we can meet the goals that we communicated to you all. Thank you very much again, and see you after the Q1 results in a few months from now. Thank you very much.
Thank you, everyone.