Good afternoon, ladies and gentlemen. Thank you for joining us for today's investor and analyst conference call. At my side is CFO Markus Mühlböck. As usual, we are joining forces in the half-year and full-year calls. In summary, the results of Polytec Group for the first half of 2025 are in line with our expectations. Sales amounted to EUR 357.6 million, representing an increase of 2.3%. EBIT rose to EUR 5.6 million, and the EBIT margin improved by 0.6 percentage points compared to the first half of 2024, reaching 1.6%. Once again, we can report a positive net result. It amounts to EUR 1.4 million. This is obviously not an ultimately satisfying financial performance, but still a good achievement considering the market challenges that have existed for years. Vehicle production in Europe remains unsatisfactory.
The forecast for the full year 2025 is once again 3% below the previous year, following an already realized reduction of 6% in 2024. We remain at a persistently low level of around 15 million-1 6 million vehicles produced in Europe per year. Overcapacity and the resulting market pressure on the entire industry therefore continue. Accordingly, the various measures that we at Polytec are taking to optimize our organization, our cost, and our product portfolio remain necessary. We are making steady and tangible progress here. As already explained on several occasions, the painted exterior business area is particularly affected by upheavals and challenges. Polytec operates in the niche and small serial segment. Large serial suppliers are increasingly pushing into the upper end of this niche, having high impact on future sales potentials. To improve our future economic performance, we are working intensively on the strategic alignment and adjustment.
For example, the uncertain market outlook has prompted us to significantly reduce CapEx in the UK as a first reaction last year. We are now realigning commercials in reaction to the significant changes in our customers' expectations. The Polytec plant in Weiherbach, which primarily operates in the painted exterior sector, achieved its operational turnaround at the end of 2024. However, it is therefore all the more regrettable that despite all our efforts, the unfavorable market situation does not allow for a viable continuation scenario. We will close the plant in early 2026 to avoid future losses. The closure itself is not expected to have a significant economic impact in 2025 and does not change our guidance.
After a phase of project postponements and cancellations in the field of electromobility, there are currently indications that activity may increase as OEMs have made strategic best decisions and also maintain options for combustion engine models. However, the outlook for volume remains uncertain, so Polytec continues to pursue a flexible investment strategy. The Polytec solution force has established solid foundations in solutions for electromobility, ensuring competitiveness in key technology areas. Our smart plastics applications, the non-automotive business, focusing on reusable packaging, are emerging as a key growth area beyond the automotive sector and increasingly contribute to the company's overall development. Although market challenges will remain, we believe that Polytec Group's adaptability and innovation will allow it to navigate change and seize new opportunities. To conclude my part, I would like to briefly address the changes in management. Peter Bernscher , former CCO of Polytec, has left the company.
He took an opportunity in the board of Tata Steel, preliminarily acting in the non-automotive business. His position will not be replaced, and his responsibilities have been divided among the three board members. At this year's annual general meeting, two new members were elected to the Polytec supervisory board. Günter Apfelfalter can look back on decades of experience as an international leader in the automotive industry. He succeeds Manfred Krauss, who received the maximum age for the supervisory board. Bernhard Matzner heads the audit committee with his many years of expertise in finance. He succeeds Reinhard Schwendtbauer , who had to leave the Polytec supervisory board due to his appointment as General Director for Raiffeisen Landesbank Oberösterreich. The Polytec Group supervisory board also includes the well-known members Friedrich Huemer as Chairman, as well as Viktoria Kickinger and Fred Duswald.
Now I would like to hand over to Markus Mühlböck, CFO of Polytec Group.
Thank you, Markus. Ladies and gentlemen, a warm welcome from me as well. I would like to continue with the major financial figures of the first half-year 2025. Polytec Group continued its positive trend and was able to improve almost every financial KPI compared to the first half-year 2024, despite a challenging environment. From today's perspective, the management of Polytec Holding AG keeps the outlook unchanged. We expect planned consolidated sales in the range of EUR 650 million - EUR 700 million for the 2025 financial year and targeting an EBIT margin of around 2% - 3%. Main stats and figures of the first six months of 2025. Polytec increased its consolidated sales revenues by 2.3% to EUR 357 million. EBITDA amounted to EUR 21.1 million, this equals a 5.9% EBITDA margin. EBIT totaled EUR 5.6 million, coming from EUR 3.5 million last year. EBIT margin rose by 0.6 percentage points from 1% to 1.6%.
The financial result amounted to EUR -4.1 million, coming from EUR -5.8 million year-on-year. The reduction was a consequence of the lower interest rate level and reduced financial liabilities. Earnings after tax reached EUR 1.4 million, while last year we were in the negative territory, amounting to EUR -2.7 million. Total earnings correspond to earnings per share of EUR 0.06, last year EUR -0.11. Equity ratio was 41.9%, similar to the high level of the last balance sheet date in December, which is 41.7%. Let's have a look at the Polytec Group sales split. In total, Polytec Group generated sales revenues of EUR 357 million, which was an increase of 2.3% or EUR 8 million compared to the first half-year of the previous year. We report sales performance in three market areas.
I'll start with the biggest area, the passenger cars and light commercial vehicle market area, which contributed 75.6% to our total turnover. Sales revenues of EUR 270 million were generated. This corresponds to an increase of almost 6% compared to the previous half-year. Market area number two, commercial vehicles. Sales amounted to EUR 50 million and thus was at the previous year's level. This equals 14% of group total sales revenue. Finally, market area number three, smart plastics and industrial applications. Compared to the high level of the previous half-year, revenues of this market area declined by almost 15% or EUR 6 million and amounted to EUR 37 million in the first half-year. The share of products for smart plastics and industrial applications in the Polytec Group consolidated sales shows 10.3%.
Why were we able to turn the net results from EUR -2.7 million in the first half-year 2024 to EUR +1.4 million in the current half-year? In early 2024, we initiated a performance program to boost our efficiency and cost structure. In the first half-year, we were able to cut our personnel expenses by 2.5% or EUR 3 million compared to the same period in 2024. This amount looks even more positive if you consider that in the first half-year 2025, negative one-time effects amounting to EUR 3 million are included for reduction of headcount, mainly in connection with the planned closure of our Weiherbach plant in Germany. Adjusted by that one-off effect, the improvement in personnel expenses would be EUR 6 million. In this context, I mentioned the number of employees. As of the end of June 2025, Polytec Group employed 3,606 people, counted in full-time equivalents, inclusive leasing personnel.
The number of employees was thus 7.7%, or exactly 300 FTEs lower than in the previous half-year. Secondly, we were able to reduce our other operating expenses. You can read it directly out of the P&L because of the different disclosure of the individual items. For instance, we had to rent external storage for customer demands. This led to increased other operating expenses, but has been compensated by customers. The compensation is shown within turnover. Also, as expected, the interest expenses decreased by EUR 1.8 million to EUR -4.3 million due to lower financial debt and lower interest rates. Now let's have a look at the financial figures. The EBITDA increased by 10% in the first six months of 2025 compared to the same period of the previous year, coming from EUR 19 million to EUR 21 million. The EBITDA margin increased by 0.4 percentage points to 5.9% compared to year-on-year.
Earnings before interest and taxes rose from EUR 3.5 million in the first half-year 2024 to EUR 5.6 million in half-year 2025. The EBIT margin increased by 0.6 percentage points from 1% to 1.6% compared to the same period of the previous year. If you would adjust the explained one-time effects, the EBIT margin for the first half-year 2025 would have been 2%. The equity ratio was 41.9% and was thus slightly higher than compared to year end 2024. Net debt amounted to EUR 52 million as of the end of June 2025. This was an increase of EUR 9.8 million compared to the balance sheet date end of December 2024, mainly due to increased working capital. If you compare net debt year-on-year, there was a decrease by over 26% to EUR 19 million, coming from EUR 72 million in half-year 2024. The outlook for the full 2025 financial year remains unchanged.
From today's perspective, the management of Polytec Holding AG expects planned consolidated sales revenues in the range of EUR 650 - EUR 700 million for the 2025 financial year and is targeting an EBIT margin of around 2 %- 3%. For the whole text of the outlook, please refer to the published report. This was my statement on the half-year results 2025, and now I would like to hand over to our CEO, Markus Huemer, for his summary.
Thank you, Martin, and Markus, for your motivating financial overview. I'd like to briefly summarize what we want you to take out of this call. Polytec Group recorded slight growth in sales revenues in the first half of the year against a negative market trend. The net result remains positive even after accounting special effects of EUR 3 million for staff reduction. Thanks to consistent measures, both net working capital and interest-bearing liabilities were significantly reduced against the middle of last year. Structural and personnel adjustments are already being implemented and further proceeding. In parallel, our technological position in future portfolios like electromobility and smart plastics applications is solid. Even though overcapacity and intense competition continue to challenge the industry and market uncertainties make planning and investment decisions difficult, we are generally confident about the future, confirmed by a stable outlook for the full year.
Thank you all for listening and have a nice day.