Okay. Let me start with the first slide. Some of the most important events we have seen during the course of the year. First of all, those who know us for some years will have noticed that our corporate design changed since February. We have now a new, more modern look. Our intention is to show our commitment to innovation by that. The icon which you see at the bottom on the right is a combination of globe and walnut. Our traditional walnut, combined with a globe showing our ambition to become a global player in industrial AI and in the vertical markets we are in.
In April, when we attended Hannover Fair, like in previous years, we have been recognized with a very important award, the Factory Innovation Award in the category Artificial Intelligence in the Factory, and that underlines our unique expertise in really bringing artificial intelligence into existing real customer applications. You might know that we have several decades of experience with that, and we have been very proud to again being recognized with that award. Then I think the most important event of the year, after getting the foreign direct investment approval by the German Federal Ministry for Economic Affairs and Energy, the voluntary public takeover offer by Zest Bidco Warburg Pincus was settled on July 15. This means that as of July 15, Warburg Pincus had secured more than 82% of PSI's shares and is now, of course, the important shareholder. Also on July 15, we did a cash capital increase from authorized capital.
This means we issued a bit more than 644,000 new PSI shares. The price was EUR 45, which was exactly the price of the voluntary public takeover offer, and it was fully subscribed by Zest Bidco, the bid company behind Warburg Pincus' voluntary takeover offer. This was done to strengthen PSI's capital structure. I think it was also an important signal of commitment by our new owner, Zest Bidco Warburg Pincus. With that, I hand over to my colleague, Gunnar Glöckner, who will tell you a bit more about the figures we have achieved in the first half of the year.
Happy to do so. Good morning also to everybody. Maybe before we start, some comments why we are also with our conference quite late in the year, and why we have chosen as the basis for our explanations on the next slides the Q2 figures and why we do not refer to the figures for 2025. I think we had several announcements, and Carsten explained it. We had a quite difficult process for the FDI proceeding and the approval of the authorities here in Germany. This led also in the course of our preparation and audit of the financial statements to some delays. To say that very clearly. On the timeline with the preparation of the statutory financial statements as well as the consolidated financial statements, we were totally in the timeframe we had set ourselves.
And we had also met with this timeline the announcement date end of April. However, during the process of the settlement of the takeover, as Carsten explained, we still had these difficulties in the talks with the Federal Ministry for Economic Affairs and Climate Action that some of the conditions under which the FDI approval was then given were not clear. So these conditions were critical to some extent for our prognosis for the fiscal year 2026. Therefore, this discussion led to quite a lot of intense talks with our auditors which more or less said to us, "Okay. We do see too much uncertainty on the basis of what we had and on the basis of what we could document for the FDI approval so that we cannot sign the financial statements." That led to a lot of delays then in this process. Clearly to say, preparation-wise, we were ready.
We also had a clear picture on the guidance for 2025, which we, I think, also communicated to the market and which we also then could fulfill. But we still had these outstanding discussions with the auditors, and that was then the frustrating part of the whole exercise, and you may have seen it, which then ended up at the end of the finalization of the audit in additional discussions which were not subject to the delay and where we could not reach an agreement with the auditors. But maybe if questions with regard to the opinion quality are here in the audience, we can then discuss that later in the Q&A. But that's more or less the reason why we took out year 2025. For us, 2025 was in the frame of our expectations.
We also achieved our goal set to the capital markets. Therefore, it was a successful transformation year after the year 2024, where we had still a lot of impacts from the incident in August. Coming now to the status after the first half year, 2026 was closed. Maybe first I would like to give you a short update what is on the overall perspective, the status of the numbers. I would then have a look with you on the segment reporting and the results for our business units and maybe also in connection with that, give you some guidance, how to assess our publication from Friday in the light of that numbers. Let's start. We have here the presentation. We have a presentation by three months and by six months.
I would rather focus on the six month presentation, because the overall picture is not so changed between these two presentations. Maybe important to know that we experienced in 2026, as always, a relatively difficult first quarter, with some changed economic framework conditions. And that we then catched up a little bit in the second quarter, and that we have a clear view that also the third and the fourth quarter will help with this catch up further and then come to the adjusted basis of the guidance we communicated on Friday. If we look at the six months presentation on the right side, the first thing you see on our revenue side, we have an increase of our revenue by 4% if you compare it on the year-by-year basis. Important to know what are the main impacts here.
We have a very good revenue development in our core business, Grid & Energy Management, where we had high expectations and where we see that we can fulfill these expectations also for the full year. We also have a very good development in logistics, where the market still has a high dynamic, as in the energy sector too. We see a rather stagnating number of revenues in the DMF business. This is mainly due to the fact that we missed new customers in this development. We have not a lot of new customers in the DMF business over the past years, but we have always had some, and here we have a quite low number, so to say, in the first half year for DMF.
I think our biggest headache in the revenue development for the first six months is definitely our business unit, PIM, where we face a very challenging economical framework, on the one hand with some worldwide developments which every industry is affected, but also especially in the discussion around tariffs for steel products from Europe to the U.S., and also with some critical discussions in the automotive industry, which is one of the big demand sources for our PIM business. All that together led to the fact that a lot of our customers delayed their orders on the PIM side.
Since the PIM business is based mainly on time and material business, this has a direct impact on revenue, because if we do not have the orders, if we do not have a base where we can work on and depend on time and material orders, then we see that immediately in our development. That is maybe the biggest source of the quite disappointing development of the revenue in the first six months. What is good and what helped us in order of quality of revenues is, you may recall that we started in Q3 last year the pricing initiative, where we increased prices, especially for maintenance, by a certain percentage. We also were successful in negotiating these price increases.
We could definitely see that on the pricing side of the maintenance, but also on the pricing side in the new agreed contracts, we also have higher rates and could realize these price increases. Definitely once we have overcome the situation again, this will help us also to show a better quality of revenues here in this number. On the cost side, you also see that we have an increase by 9%. Here maybe the important developments. On the personal expense side, we had last year initiated and implemented a large restructuring program for our business unit, GEM. This initiative ended with the reduction of approximately 100 employees in Germany and Poland.
The impact of the reduced salaries is not fully in here for the six months because some, especially from the larger portion from the German employees, only left us in February. We have not the full impact here on the numbers. But definitely, there is a big impact from this reduction of personnel. We accrued all the amounts which we needed for payments to these employees for gardening leave. We accrued all that in 2025. This has no impact anymore on the cost side. But we have now the reduction we can see from this initiative. Compensating to that, we have a 3% salary increase overall in the company for the employees. Maybe also helping on the cost side. We worked in the first half year with almost a hiring freeze.
Only a few new places and hires came to us, and especially in the background of the situation, we were quite prudent with new hires. On the material expenses, I think we have a higher number here because our business activities in Malaysia are growing constantly, and there we have quite a material intense business. That is just an impact that also reflected in revenue. Depreciation, a smaller increase, because we had higher investments in 2025 in our IT infrastructure. Then I think the big number, which is impacting this cost increase between the two periods, is definitely the net expense we show here for other expenses and other income.
Here we had in the previous periods or the first six months, 2025, higher compensation impacts on the income side, on the operating income side for compensations we get for research and development activities, but also on the insurance side for our incident, for the cyber incident. These impacts were one-offs. These one-offs are not included in 2026, and that maybe explains the increase in the net expense. In addition, we also have to see that we still have a high level of consulting fees in our other expenses due to the fact that we had these very difficult negotiations with the Ministry of Economic Affairs, and also some legal questions around the takeover, and some other measures we did on the reorganization and restructuring of the company. With all that, we end up with a negative EBIT for the first half year, 2026.
If we adjust this EBIT for reorganization and restructuring expenses, which has incurred for the new reorganization and restructuring measures we plan for 2026, then we come to an amount of EUR 1.2 million for the first half year, 2026. This is compared to the previous year lower, yes, but we have in the previous year included the one-offs I explained before. Interest expense increased because we have a higher net financing balance with four banks. On the tax side, we still have very profitable activities in Malaysia and U.S.A., but we do not have an international tax compensation, and therefore still are in a tax paying mode for 2026. I think that is all what I said here is explained then on the next slide in some bullets. Maybe would go over that and jump to our view on the segments.
And maybe here, let me also take some minutes more before we then go to balance sheet related items, to also give you a flavor where we stood in the half year 2026, and what is the reason why we then changed our guidance last Friday and announced a slightly lower guidance for 2026, as we announced in our financial statements for 2025. What we can see here, if we start with the Grid & Energy business. You know all that we had quite a lot of economical struggle in the last year with some large projects here, and also some organizational questions. You can see that, from 2025 to 2026, we have a significant increase in the revenues. You also know that we had a very large project last year on the order intake side with E.ON.
Definitely we have some first revenue portions in here for the E.ON project. And this helps us really to increase here significantly the base of the revenue. And if you take the percentage of the increase, then you also will see that this is fully in line with our guidance we provided the market with in the context of the 2025 consolidated financial statements. Adjusted EBITDA is a number we included here because that will be the future more relevant number for us. In terms of guidance, maybe we have to focus the view on the adjusted EBIT. So here you see from EUR 2.2 million, 4% of revenue in 2025. We have an increase of EUR 3.5 million. And 5% is percentage of revenue. This is a little bit higher than the guidance. But we think that we are here on a good way for the full year to achieve our goals.
And since this is the biggest business unit with some very complex topics also from the past and some legacy issues, we are quite optimistic that here we have really a very good result for full year 2026. This is different if you go to the next column, if you go to Process Industries and Metals. You see, from EUR 35 million revenue in 2025, we have declined to approximately EUR 30 million in the first six months, 2026. This is what I tried to explain before. So we have this significant delay of projects, especially in the European steel market. Most of our customers are international customers, so they allocate their investments also between different markets.
And what we can see and what we can hear definitely here is that there is a kind of a prudence in the investment policies, waiting for final solution of the tariff discussion between the European Union and the U.S.A. Waiting also for some more clear signals from the automotive industry Which is again one of the big demand sources for the steel industry in Europe. And that all leads to this difficult situation we see. We have to say, if we consider the pipeline we also track for the steel market, then the pipeline has positive growth. So we see a lot of positive development in the pipeline. But we have to recognize that the pipeline is not fulfilled at the dates we expected. So there are always delays. There are always discussions. "No, we do it next month.
No, we wait for another three months with our customers. We still believe that the positive signals we can see from the pipeline show that the market still is present, the market still has its volume, and there is no long-term crisis in this market. But we also have to recognize that at the moment, definitely, we do not get a translation from the pipeline to order intake to revenue. That's a matter of fact, and that's what you see here, and that is also reflected in the adjusted EBITDA and the adjusted EBIT. Here you can see definitely the negative EUR 2 million we see here with 7% negative on revenue, which was more really the strong impact from the first quarter. This is something that's not in line with our guidance.
We still waited for July because we had some larger pipeline projects where we expected that they would transform to order intake. They did not. We decided then on Friday to say, "No, there is not enough room in the remaining five months of the year that we can catch up this effect with time and material business because that's headcount dependent and we cannot increase headcount." On contrary, we are thinking at the moment to reduce headcount to have a reaction on this negative EBIT. Therefore we decided on Friday then to correct the guidance, especially with regard to this negative trend tendency here in the industry, in the process industry, in metals business. Discrete Manufacturing, I think commented before, so we have stagnating revenue number here.
Not enough new customer business, but we still are optimistic that there will be some catch-up in the second half year. The negative EBIT in the Discrete Manufacturing business was planned and also communicated in this magnitude for the year. The background here is that we invest strongly in our new MES and that all the investment costs are directly recorded in the P&L, and therefore we have the negative result. Logistics also in line. We have increase in revenue. We have also a situation in the segment. But also here we still invest heavily in the product, especially in the opportunity to sell the product on a SaaS basis. Also these investment costs are recorded in the P&L and therefore we have, irrespective of the increasing revenue, a net result of zero. But that was also in this magnitude planned and communicated for the year.
I think that maybe we follow some more words on the side of the segments. I think on the next slide are then again the balance for that, and we can go to the balance sheet. Let's have a look what happened here. What you can see if we compare the non-current assets to year end. On year end, we had a big jump in our non-current asset bases. Why? Because we signed a new lease contract for our Berlin headquarter. Since we have to capitalize these lease contracts, we had quite a jump from 2024 to 2025. Now between the end of 2025 and the end of June this year, we do not see a lot of movements here. I think our tangible assets are not changed basically. We have no impairment indications in the half year.
And for the big amount of the capitalized lease agreements, we have still a reduction when we pay our monthly rent. So we then depreciate also these assets. That is maybe what you see in the depreciation period, but more or less no changes on that caption. On the current asset side, there is a little bit more movement. You see work in process. These are our projects which we have where we have no final billing. You see here a slight increase. But I also see that in connection with our short-term liabilities, where we have also caption prepayments received. So that are then payments we receive also for projects which we have not yet billed to customers. And if you consider these two captions together, then we have a net increase in our unbilled projects.
That is definitely good news because we are really fighting here with our customers to a better level of pre-financing for our projects in order to also avoid any risks so that we maybe later do not get the money for our work done. On the trade receivables, we have a large increase of EUR 10 million at the end of the first half year. This is not really a business impact. This is rather by hazard an effect, because we had quite strong billing activities shortly before the closing of the half year. And these higher billing activities lead then to an increase by this EUR 10 million.
It is a quite short-term impact because when we then have the billings paid, the balance reduced by the EUR 10 million again, and we are also working that this high balance of EUR 40, EUR 44 million, as we have seen also in the previous quarters, will be reduced in the future in order to have a better working capital position here. Other assets, no changes. And on the cash side, we also have to have a look not only on the cash, which is on the asset side, but also on our financial liabilities, which we have on the short-term liabilities. You see here that we had a quite large increase of EUR 12 million. This is mainly due to the payout of the restructuring expenses we had for the 100 people we let off last year in the GEM restructuring, but also to the relative poor operating performance in the first two quarters.
Financing mainly by bank overdrafts until we ended the first half year. Equity and liabilities. In total, I think that is not to comment, but equity. So we have a reduced position of the equity, mainly because we had a net result for the first half year. Also, the long-term liabilities have not changed significantly. And on the short-term liability side, I think the most important remarks will be financial liability. So what we have against banks and what we used as short-term financing in the first half year. Okay. If we maybe on the next slide translate that in a cash flow position. You see here we have a negative operating cash flow for the first half year. Once driven by the negative result, but also driven by working capital changes and non-cash items.
In the first half year, the investment cash flow reflects some investments in tangible and intangible assets. Here we are investing mostly in our IT infrastructure, and this is still an outcome of some of the security measures we do in connection with the cyber incident we had in the past. The switch in the balance here in the investment cash flow mainly is due to the fact that we had last year the cash inflow from the sale of the mobility activities to a third party. That was a one-off. This year we have more or less a comparable investment level as we see it every year. On the financing side, you see what I explained before. Mostly we financed us the first half year by using credit lines with banks.
In addition to that, we had some change in the lease liabilities because we paid out our rents. That's also comparable to the previous periods. Overall, a negative change in our cash position, which we plan to switch in the other direction in the next quarters. Because, again, we had this billing impacts you have seen. A EUR 10 million negative working capital impact, which we definitely will turn in the next quarters and also some additional reductions of working capital, which will then lead to a positive change in cash for the next quarters. Here maybe just in terms of outlook or in terms of maybe not only looking back to the past, the presentation of our new orders for 2024, 2025, 2026, just to give you a picture. Also the picture on the revenue side and on the order backlog.
I think the new orders, it is always important to understand that if you compare here the columns, we had some significant new orders in the first quarter 2025. This was mainly the big order of E.ON, where we are still working on, but also the order for the airport in Hamburg. We also had some not sold, in the dimension not comparable to E.ON, but some significant new orders in the first quarter 2006. You see that here. It's always a little bit the impact that we see quite a strong development in the first quarter, which is then not immediately translated into revenue. On the revenue side, we see regularly over the quarters, rather not so strong first and second quarters, and then stronger Q3 and Q4 on the revenue side.
That is also our expectation for this year, where we have a better starting base in terms of revenue in the first and second quarter, irrespective of the difficult situation in the PIM business, where we also expect that we will have a significant higher revenue standard in third and fourth quarter, mainly driven by development in the GEM business unit. On the order backlog side, I think this is mainly to illustrate that the amount of work we have in our books, which is in front of us, where we can work on and where we have reliable basis for our projections for the next months. You see that as well as in Q1, as also in Q2, we had a quite high and stable basis for our order backlog.
You have to consider that the order backlog we show here is not including the order backlog from our time and material activities. Here we show the order backlog not because we do not know what customers will ask from these orders, so that we have, in addition to what we show here, still a kind of a volume where we have to work then on the T&M side. Just the illustration from these graphs is that we have really a quite stable and comfortable basis for the next months for our projections. Again, maybe the adjusted guidance. I tried to explain that in connection with the presentation of the segments. Again, we see this where we meet development, steel market.
This is particularly for the European market, where we have really strong decline in orders and also the longest delays in the translation between pipeline and order intake. I think I explained that before. That is the main reason. That has also a magnitude where we think we have done to inform the capital market that we definitely will not achieve our yearly goals here in that segment. We see that, when we correct this business impact from the PIM business unit, which comprises more or less 25% of our business, then we have to adjust the group revenue goal, which we had assessed of approximately 10%. We will now reduce it to 5%. We also have then to correct our order intake. Order intake, we also have to consider that we have this one-off impacts in 2025, which could not be expected for 2026.
Also here, a correction of the goals and predominantly really coming from this development in process industry and metals. The adjusted group EBIT margin would then be 2%. That is considering also impacts which we expect from the second half year, where we will implement certain measures, also to stabilize the EBIT situation in the PIM business unit and also the other business units. Maybe to translate that to more concrete measures. We are working together with our group works council and the local works council on the reorganization restructuring program for Germany. We will then also show the impacts from the restructuring below line, but there will be also some impact on the adjusted EBIT and the 2% we show here.
For the other units, I think I mentioned that before, the annual targets will remain as they were communicated in connection with our guidance for 2025. We also see here certain developments in the markets, sometimes stronger, sometimes weaker. But as I said, our overall expectation is that we can meet our goals here in these segments. Then also can confirm the guidance we now adjusted for the whole group. I think that would be from my side. I would then open or maybe that is something Carsten can communicate and then for the other dates. Then, I am happy to answer your questions in the Q&A session.
Yeah. Yeah, only two important dates left in our financial calendar for this year. We will have our also delayed annual general meeting on September 2, in presence here in Berlin. We will publish our third quarter figures in late October, as always. So, yeah, I would say we are back to normal in terms of our reporting. Yeah. So far I have no questions in the Q&A section, so please feel free to type in your questions. There is the first question from Knud Hinkel from Pareto Securities. When do you expect the intended delisting to materialize?
I think I cannot answer that question at the moment with a concrete date. I think it is clear from what we have published in connection with the takeover that there are plans to delist the company. That is the only thing which makes sense in this connection. But so far, we have no written resolutions or anything what is concrete enough that we can communicate any dates on that.
Then, a question from Simon Scholes from First Berlin. Will investments in cloud and SaaS at Discrete Manufacturing and logistics stay at the same high level in the second half year 2026 and in 2027, as in the first half of 2026?
If we look at the allocation of these investments over the year, then some of the investments, especially on the DMF side, will even be slightly higher than in the first half year because what we did, in fact, in connection with the planned investment strategy, you know that the transformation to the cloud and SaaS business is something what we do for the first time. That also means that, from the capacities we have for that, we do not have the right resources in place, so we hired people also in that area, and then we need to onboard them. So we had quite an allocation of these expenses over the first half year, but I expect a slightly higher level of investments in the second half year.
On the other side, with the now planned reorganization restructuring, we have a clear focus that we would use our especially development capacities by a more efficient use of AI. This is something what all software companies are doing at the moment. We have a quite progressed stage of discussions with all business units on that in terms of adjustment of capacities, so that we have maybe on the one hand, a higher amount of investments for these new technologies, but on the other hand, also a reduction of our development capacities in order to have a more intense use of AI there.
Okay. Yeah, for the moment, I have no additional questions in the chat. Last call, if you have any remaining questions, please feel free. Yeah, I think we wait for half a minute or so. Okay. I think we are through. No further questions. Once again. Oh, now there is one from Dennis Butts. What is the amount of adjustments planned for 2026?
That is quite difficult to assess at the moment. I think I mentioned that we are working on a quite large program, which is then a follow-up program to what we had at GEM last year. Part of the program will be that we have a further reduction of our personal base or the headcount base. In connection with the reduction of the headcount, we definitely will have significant payments to reduce people, especially in Germany. We are still in talks and in discussions of the works councils how exactly what will be the magnitude of the program, what will be the scope of the program. Once we have finalized that, I think we then can assess the detailed number of adjustments. But just from a gut feeling, that will be a double-digit number.
Okay. I think that was the last question. Once again, thank you for attending this short conference, and I wish all of you a very good and successful week. Yeah, thank you and bye.
Bye-bye.