Good afternoon. Thank you for joining us for today's investor and analyst conference call on POLYTEC quarter three results 2025. I have to excuse myself for my voice, but I caught a cold. The good news at the very beginning: the third quarter, July to September, was the quarter with the best earnings figures during the current fiscal year. Although experience has shown that the third quarter is usually characterized by lower sales revenues due to the customers' factory vacations, the earnings situation has shown a significant improvement compared to the prior year. We continued our positive trend and were able to improve almost every financial KPI compared to the same period of the previous year. The results of the POLYTEC Group for the nine months 2025 are in line with our expectations. More details on the figures later.
As part of our efficiency improvements, the number of employees was reduced by around 300 full-time equivalents to 3,560 as of the end of September. In order to optimize the strategic orientation and future economic performance of the POLYTEC Group, work is being done to adapt the current product and service portfolio. At the beginning of July 2025, it was decided to close the Weierbach plant in Idar-Oberstein, Germany, at the end of April 2026. In this context, a negative one-off effect was already recorded in the first half of 2025. Furthermore, the aim is to increase sales revenues in the smart plastic and industrial applications market area to around 30% of the total group sales in the medium term. As a result, the earnings situation is expected to improve further.
As the current year is entering the home stretch, we have gradually specified the outlook for the full year 2025. From today's perspective, the management of POLYTEC Holding AG expects planned consolidated sales revenues in the range of EUR 660 million-EUR 680 million for the full 2025 financial year and is targeting an EBIT margin of around 2.5%. Furthermore, a positive result after tax is targeted for the full year 2025. For the whole text of the outlook, please refer to the published report. I would like to present you the major financial figures of the month from January to September 2025. POLYTEC increased its consolidated sales revenues by 1.5% to EUR 515 million. EBITDA amounted to EUR 32.3 million and increased by almost 30%. EBITDA margin reached 6.3% and grew by 1.4 percentage points. EBIT totaled EUR 8.9 million, coming from EUR 1.4 million last year, a significant plus.
EBIT margin rose by 1.4 percentage points from 0.3% to 1.7%. The financial result amounted to EUR -5.9 million, coming from EUR -8.3 million year on year. The reduction was a consequence of the lower interest rate level and lower balance of interest-bearing liabilities. Earnings after tax turned from the negative territory in the last year and reached EUR +2.4 million this year, a EUR 10 million improvement. This equals to earnings per share of EUR 0.10. Last year, EUR -0.32. Equity ratio stands at 43.3%. Year on year, it was 40.1%. Let's have a look on POLYTEC Group's sales split. In total, POLYTEC Group generated sales revenues of approximately EUR 515 million, which is an increase of 1.5% or around EUR 8 million compared to the nine months of the previous year. The increase is mainly based on increased tooling turnover. Part sales slightly decreased.
Here, I would like to mention that one of our top three customers located in Great Britain was subject to a cyber attack, and therefore we missed sales for the whole September and half of October. In the meantime, all customer plans are back in operation. We report sales performance in three market areas. Basically, the rough split of these three areas is similar to the share shift only slightly from quarter to quarter. I'll start with the biggest area, the passenger cars and light commercial vehicle market area, which contributed 76% to our total turnover. Sales revenues of EUR 390 million were generated. This corresponds to an increase of 6% compared to the previous nine months. Market area number two, commercial vehicles. Sales amounted to EUR 73 million and thus was slightly above the previous year's level. This equals to 14% of the group's total sales revenues.
The level of trucks has been low for several quarters due to the generally poor economic environment. The situation is similar for tractors and agricultural vehicles, where we expect increasing sales next year due to a ramp-up of new customers. Finally, market area number three, smart plastic and industrial applications. We had a weak third quarter. Compared to the previous year, revenues of this market area declined by almost 26% or EUR 18 million and amounted to EUR 51 million in the reporting period. The share of products for smart plastic and industrial application in the POLYTEC Group's consolidated sales showed 10%. With new projects in the field of reusable transport packaging and components for energy storage, which we have been working on for some time, we want to increase the share to around 30% in the medium term.
Now, let's have a look at the financial figures of the P&L. Earnings before interest and taxes rose from EUR 1.4 million in the first three quarters of 2024 to EUR 8.9 million in 2025. The EBIT margin increased by 1.4 percentage points from 0.3% to 1.7% compared to the same period of the previous year. In line with the increased EBIT, our EBITDA increased by almost 30% in the first nine months of 2025 compared to the same period of the previous year, coming from EUR 25 million up to EUR 32 million. The EBITDA margin increased by 1.4 percentage points to 6.3% compared to year on year. Overall, the development of our earnings show a positive trend, but how was that possible? In the beginning of my statement, I informed about the executed headcount reductions. The main factor is our increased operational performance and therefore our decreased personnel expenses.
Compared to the same period in the prior year, we were able to decrease our personnel expenses by EUR 6 million. This number already contains one-offs amounting to EUR 3.2 million regarding the closure of our Weierbach plant and further reduction in staff. Personnel ratio decreased by 1.7 percentage points to 33.3%. During the nine months 2025, the group's material expenses increased by 3.1% due to higher tooling and engineering business. The financial result in the first nine months of 2025 amounted to EUR -5.9 million, coming from EUR -8.3 million in the previous year. This positive improvement by EUR 2.4 million was mainly due to the stable interest rates at a moderate level and lower interest-bearing liabilities. Finally, earnings after tax. Consolidated earnings after tax for the months January to September 2025 turned positive and amounted to EUR +2.4 million, a EUR 10 million improvement.
This corresponds to earnings per share of EUR 0.10 last year, EUR -0.32. Now, let's take a look at the balance sheet. The equity ratio was 43.3% and thus 1.6 percentage points higher than compared to year on year 2024. Net working capital increased from EUR 23 million to EUR 62 million compared to the balance sheet date end of 2024. This significant increase is mainly due to the planned inventory build-up for one customer, the pre-financing of tooling and engineering projects, and the cut-off due. Net debt amounted to EUR 57 million as of the end of September. This was an increase of EUR 15 million compared to the balance sheet date end of 2024, mainly due to increased working capital, as mentioned before. If you compare net debt year on year, there was a decrease by 16% coming from EUR 69 million at the end of September 2024.
I'd like to briefly summarize what we want you to take out of this call. POLYTEC Group recorded slight growth in sales revenues against a negative market trend. The net result significantly increased by EUR 10 million, even after accounting special effects of EUR 3.2 million for staff reduction. Thanks to consistent measures, interest-bearing liabilities were significantly reduced against last year, and our balance sheet looks healthy. Structural and personal adjustments are already being implemented and further proceeding. In parallel, our technological position in future portfolios like electromobility and smart plastics application 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. This was my statement on the quarter three results of the 2025 financial year. Thank you.