Ladies and gentlemen, we warmly welcome you to the earnings call regarding the H1 figures of 2026 of the Polytec Holding AG. I am pleased to welcome Polytec CFO, Markus Mühlböck, and IR manager, Paul Rettenbacher, who will guide us through the presentation shortly, after which we will move on to a Q&A session with audio line and chat. With that, I am handing over to you, Mr. Mühlböck.
Good afternoon, ladies and gentlemen. Thank you for joining us for today's investor and analyst conference call on Polytec's half-year results 2026. Let me start with a quick overview of the first half year. Polytec Group is on the right track. We continue to move forward with a clear focus on productivity and profitability.
Although group sales are temporarily lower, this is no cause for concern. Quite the opposite. We have significantly optimized our product and production portfolio, resulting in an improved profitability in the first half of the year. We also made further progress in strengthening our balance sheet with a higher equity ratio and significantly lower net debt. At the same time, we have intensified our efforts to expand and diversify our non-automotive business. We are making very good progress in this area and see promising opportunities ahead.
Against this backdrop, we confirm our outlook for the current fiscal year. Before I take you through the key figures of the first half year, I would like to briefly outline the strategic positioning of the Polytec Group, as this provides important context for understanding our financial performance.
Our guiding principle is to apply the right strategic approach to each product area. In automotive, we remain an established tier one development and production partner with a clear focus on electromobility, disciplined investment, and capital preservation. In a largely flat market, we see M&A as our primary option for future growth.
In parallel, Polytec is developing Smart Plastic Applications as an attractive second growth pillar by leveraging our automotive expertise and transferring it to new markets. A diversified market approach increases our opportunities for success. We enter new markets together with our customers and develop innovative plastic solutions for industrial applications.
At the same time, we can act as an industrialization and scaling partner for innovative startups, bringing their ideas from concept to industrial scale production. Naturally, one of the questions we frequently receive from our shareholders is: Where do we currently stand with the expansion of our non-automotive business, and when can we expect this to translate into higher sales? Let me therefore give you an update on where we stand today.
The path to market in the non-automotive sector differs from what we are used to in the automotive industry. Market testing, for example, plays a particularly important role before a product can move towards full commercialization. Our Smart Plastic Applications pipeline includes a number of promising projects at different stages of maturity, progressing from initial concept through to a market launch.
With projects ranging from load carriers to applications in constructions, we are pursuing a diversified and capital efficient approach. This includes our own product ideas, co-development projects with customers, as well as partnerships. In this way, Polytec can efficiently leverage its existing expertise in materials, product development, and industrialization across new markets and applications.
We first presented this slide at our annual general meeting at the beginning of June. Since then, several of the projects shown here have moved to the right, meaning they have successfully progressed to the next stage of maturity. This demonstrates that our pipeline is moving forward, and that we are making tangible progress in building our non-automotive business.
As mentioned, our non-automotive business is becoming increasingly important to Polytec's overall value profile. Our goal is to achieve a group revenue share of around 30% in the non-automotive sector in the midterm.
For us, midterm means the period of two to three years. In principle, this is no longer than in the automotive projects, where the industrialization phase from winning to the order to start of production takes a comparatively time. We are focusing on reusable and industrial returnable containers.
These products support efficiency, sustainability, and the circular economy, ensuring stable demand and helping our customers to fulfill the European Union regulations. A strong example is BoxIt, an intelligent, connected logistics solutions that combines physical robustness with digital intelligence.
Polytec acts as the industrialization partner and exclusive supplier. This project is a good example of how we leverage our core competencies to develop profitable new applications together with innovative partners, always with a clear focus on industrial scalability and serial production.
The first products for market testing will be presented to policymakers, military representatives, and other potential customers at our plant in Ebensee this September. Before we look ahead to September, let me take you back to the first half of the year and our financial performance. Let me start with a positive look at the year-to-date performance of the Polytec share.
Based on yesterday's closing price, August 12th, our share price has increased by 44.5% since the beginning of the year. In contrast, the STOXX Europe 600 automobiles and parts index declined by 14.9%, while the ATX Total Return Index gained 29.8%. Among the 38 prime market stocks on the Vienna Stock Exchange, Polytec ranked fifth in year-to-date performance.
On a personal note, my fellow management board member, Martin Resch, and I, each purchased around 43,000 Polytec shares at an average price of EUR 4.58 at the end of June and beginning of July. This clearly reflects our confidence in Polytec's future development. Polytec is currently covered by three research houses, with an average price target of EUR 6.73. Most recently, Montega initiated the coverage with a buy recommendation and a price target of EUR 10.
Our current market capitalization is around EUR 107 million, approximately half of our equity. Over the coming months, we will further intensify our investor relations activities through conferences and roadshows. We look forward to meeting many of you in person and presenting Polytec's refined equity story to a broader investor audience. To remind you briefly, in FY 2025, Polytec Group clearly achieved its operational turnaround, improving almost every financial KPI.
We met and even exceeded our outlook and returned to a positive earnings after tax. Based on this strong performance, the management board proposed a dividend of EUR 0.20 per share, which was unanimously approved by the annual general meeting. The total dividend of EUR 4.4 million was paid on June 11, 2026.
Following the positive earnings development reported for the first quarter, our H1 results confirm that we remain on the right track. Let's take a closer look at the financial figures. Again, we improved all relevant earning KPIs compared with the first six months of the previous year. Consolidated sales in H1 amounted to EUR 287.4 million, down 19.6% or around EUR 70 million year-on-year. However, this decline was not unexpected. It mainly reflects the planned optimization of our product and production portfolio over the past few quarters.
As already explained in our annual and Q1 reports, sales in 2026 are lower due to the divestment of our U.K. operations at the end of 2025 and the closure of our Weierbach plant in Germany at the end of April 2026. As a CFO, I can accept the lower sales if those sales are more profitable, particularly when the decline is temporary.
Our focus is clearly on profitable growth and better margin quality. In the medium term, we expect new projects, particularly in the non-automotive business, to increasingly contribute to sales and support renewed growth and improved profitability.
Our earnings figures already demonstrate that we are moving in the right direction. EBITDA increased by 7% to EUR 22.6 million, while the EBITDA margin improved significantly from 5.9% to 7.9%. EBIT increased by 47% to EUR 8.3 million. The EBIT margin rising from 1.6% to 2.9%.
At the end of June, Polytec Group employed 2,804 FTEs, a reduction of 802 employees or 22%. This mainly reflects the divestment of our U.K. operations, including 348 employees, as well as the closure of the Weierbach plant and related workforce reduction in Germany. The improvement is even more visible at the bottom of the P&L.
Earnings before tax more than tripled from EUR 1.5 million to EUR 5.6 million. Earnings after tax increased from EUR 1.4 million to EUR 4.7 million. This resulted in earnings per share of EUR 0.21 compared to EUR 0.06 in the first half year of the previous year. The key message is clear. We are operating on a leaner sales base, but with significantly improved profitability. Our balance sheet remains strong with the equity ratio now above the 50% mark.
As of June 30, 2026, total assets decreased by EUR 33.8 million -EUR 442.2 million compared with year-end 2025. Despite the dividend payment of around EUR 4.4 million, the equity ratio increased by 3.9 percentage points to 50.1%. Over the past two years, one of our key priorities has been to reduce net debt and strengthen the balance sheet. As of June 2026, net debt stood at EUR 29.6 million, down 43% or EUR 22.5 million compared with June 2025.
Debt increased moderately because of the higher working capital. The notional debt repayment period stood at 0.56 years, while the gearing ratio was 0.13. Both indicators remain at a very comfortable level and provide us with financial flexibility for future investments. Average capital employed decreased by almost 7% to EUR 249 million. Combined with the higher EBIT, this resulted in a significantly improved ROCE from 2.2% to 9%.
Finally, as of end of June 2026, Polytec Group had more than EUR 34 million in cash and cash equivalents. The key message here is a stronger balance sheet, significantly lower net debt year-on-year, and substantially improved capital efficiency. Let's have a quick look on the turnover split.
Sales in the commercial vehicle market area, accounting for 18% of the group sales, were slightly above the previous year's level at EUR 51.4 million. Sales in Smart Plastic Applications amounted to EUR 20.7 million in the first half year 2026.
This market area is subject to fluctuating calls from a major customer. However, this volatility is part of the nature of the business and does not change our positive view of the customer relationship. We have been a reliable partner for many years and look forward to continuing this cooperation on new projects.
Having reviewed the first half of 2026, let's now turn our attention to the future. The outlook for 2026 remains unchanged, and we can summarize in the following sentence: stable earnings situation despite lower sales revenues. From today's perspective, the management of Polytec Holding AG expects planned consolidated sales revenues in the range of EUR 560 million-EUR 590 million for the 2026 financial year.
The Polytec Group's lower total sales compared to the previous year are due to the divestment of the operational business in the U.K. as of December 2025 and the closure of the Weierbach plant as of end of April 2026. With regard to the margin development, the company expects a stable or slightly improved earnings situation despite the lower sales, and is aiming for an EBIT margin of around 3% for the 2026 financial year.
The company intends to pay an annual dividend again in the future. Polytec stands for a solid balance sheet, strong cash generation, and a reliable dividend policy. Our strong market position, broad technology portfolio, and clear strategic direction support our financial performance even in challenging market conditions.
Demand for high-quality plastic solutions remains strong across industries. We are an established tier one partner to leading European OEMs, while Smart Plastic Applications is developing into an attractive second pillar beyond the automotive business.
In short, Polytec combines strategic focus, operational excellence, and sustainable value creation, providing a strong foundation for long-term growth. Finally, we would like to thank our shareholders for their continued trust and confidence in Polytec Holding AG. This concludes our presentation of the result for the first half year 2026. Thank you very much for your attention. Now it's time to hand back to the operator to kick off the Q&A session.
Yes, thank you very much. We just stopped the recording, and we are among ourselves now as we are opening the Q&A session. Ladies and gentlemen, now it's your turn. Please note that only analysts and investors are allowed to ask their question via audio line for that. For that, please click on the Raise Hand button below, or if you are dialing in by phone, please press star key nine to raise your hand and star key six to unmute yourself.
We would like our media representatives to only ask their questions in our chat box, and I will read those questions out loud for you. On another note, we would like to continue the Q&A session in German language. Should anyone object this request, please let us know in our chat box right now. If there are no objections, I would continue this Q&A session in German.
I just got the message in our chat box that we should please continue in English, so we will do so. I have two risen hands, one by Marcus Remy. You may unmute yourself now. I just sent you a request to do so. Mr. Remy, can you hear us?
Yeah. It just takes a couple of seconds for the signal to reach and to unmute.
Sorry.
Thanks for the presentation. Can I touch upon the growth opportunities in the non-auto business? Just to set the stage, the 30% revenue share in two to three years, what's the base scenario for the automotive business? Maybe we can talk about absolute numbers. What is 30%? Which absolute number is on the back of it?
It would be the same base as today. Let's say approximately that the 30% would make EUR 200 million.
Okay. That is very clear. That requires quite a steep adoption curve. Thank you for that very helpful chart, where you show the value chain from product to market launch. What makes you so confident that the products that are currently in the product process design, if I look at the chart, it will take, whatever, 12 months, 16 months, 18 months, for those products to reach the market launch. Then, as I said, to me, the adoption rate that is applied to the EUR 200 million is extremely punchy.
That is a good question. Thanks for that one. Actually, first answer is because I am convinced and I have full trust in the products we develop together with our partners, yeah. These are great products and creating additional value to our customers. I do always believe when a product creates a value for a customer and an advantage for a customer, then this will be successful. That is number one.
Number two, we have the new regulations in the European Union taking place, I would say January 1, 2030. Therefore, there must change something, yeah. Therefore, we are so confident that we can manage that and that we are able to increase our non-automotive business to 30%.
Okay. On the plant trajectory, can you help us with some revenue figures for 2026 and an indication of the growth for 2027?
Yeah. I do not want to say, let's say specific numbers for one specific product, but I can tell you it is a one digit million amount. This is, I would call it an early adopter because here there is the deadline as well, end of 2029. They are starting to fill the market. This year it was, let's say, below our expectations.
You see, there are some, let's say, challenges because, let's say the retailer, they have to have some store, they need to implement the processes, et cetera. So it is not so super easy going, but there is a deadline, end of 2029. I do expect for the next year, let's say double the revenue, what we have 2026. So this is on a solid base, I would say.
Okay. Thank you. Turning to the automotive part, there has recently been another wave of profit warnings in the industry. We had some by the OEMs, the Volkswagen news flow that was, save at least controversial regarding closures of German plants. Can you give us an idea, given that Volkswagen is your most important customers, how much exposure you have to the German plants of Volkswagen and if there has been any talks with you on the matter of relocation of production, et cetera?
First of all, the basis is there is over capacity in the market, yeah. We, as Polytec Group, we adjusted our capacities in the past couple of years, so that is very important. Volkswagen did not do that. As I do not want to, let's say, comment on Volkswagen's strategy they did in the last couple of years, just let me say that very straight, the capacity is too high from the Volkswagen Group.
What, by the way, CEO of Volkswagen Group as well found out and thought, okay, now they want to build 1 million less cars. Has this a direct impact on us? No, because it is the same situation as it was the year before, and same situation we see now. I do see some chances here, yeah. For sure, they are asking all the time for price declines, et cetera.
But if you have good products, if you have a good process, then you can convince them. That is what we did, by the way, and we got a couple of new projects from Volkswagen Group, as well projects who prior were at some competitors from us, yeah. Therefore, I see it as I said, so I see it with chances. I see as well, that Volkswagen needs to adjust its capacity.
Okay. Understood. Last question before I get back into the line would be on the organic sales development in the first half. Stripping out the disposals and the divestments, what would be the organic growth rate, please?
That's hard to say, and that's hard to see, let's say from our reports, I know, because of the divestment of the U.K. activities and the closure of the Weierbach plant. I would say there is a growth in the automotive sector. If you exclude U.K. business, if you exclude Weierbach, and if you exclude the sale of our small plant in Belgium. There is a small increase in automotive sales because of, let's say, new projects we've won in the past.
Okay. Thank you, Marcus Remy.
Thank you very much. We have another risen hand by Mr. Hedior. I just sent you an invite to unmute yourself. You may do so now. Mr. Hedior, can you hear us?
Me now?
Yes, now we can hear you. Hello. Welcome.
Okay, perfect. Thank you so much. Good afternoon, ladies and gentlemen. First of all, congrats on the strong margin developments. My first question is regarding the SPA business. As we have seen that Q2 sales in that business area were already back above Q1, is it fair to say that we have some kind of bottom out in that area?
Yeah, I think you can say that, but I have to comment as well, in Q2, we did a lot of stock buildup for that customer, which you don't see in the turnover, but we will see in Q3 in the turnover. I would say from a production point of view, it was not too bad, but from a turnover point of view, it was, as you said, it's like the bottom, I would call it.
Okay, perfect. With respect to your 30% target in that business area, I know that many questions regarding that topic has already been asked, but, can you give us some flavor on the timeline when you expect the major orders from several other customers above that key customer that you have at the moment?
Yeah, I would say next year we do see some increase. That's our expectation. But let's say the main topic will then be 2028, 2029. 2029 for a full extent, but significantly in 2028. That's our expectation.
Okay. Thank you so much. My last question would be regarding capital allocation. As you have dramatically optimized your balance sheet, do you see some market opportunities on the M&A side, both on the automotive and also on the non-automotive business?
Here and there, we do have discussions. We already had a closer look on some potential targets. But it never came to the point that we say, "Okay, this fits. This makes sense." But we do feel that there is, let's say, increasing activities. So we are watching that very closely, but I can't say anything specific about that.
Okay. Thank you so much. Yeah, that's from my side.
Thank you.
Thank you very much, Mr. Hedior. We have another risen hand by Mr. Schnee. You may unmute yourself now. I just sent you an invite.
Yes. Thank you. I hope you can hear me well.
Yes, absolutely. Hello.
Yep, perfect. Hello together. Many thanks for the opportunity to ask questions. My first question goes a bit deeper in your products business. I am wondering if you can share some insights about your breakdown of the materials you are using. We have learned from the chemical industry that prices are going up.
I remember that you are using polypropylene and polyamide, and glass fibers as, let us say, the top three materials. Which price indications do you have for us, and are you able to mitigate those price increases from the chemicals industries? That would be my first question.
Thanks for the question. First of all, you are right. That is definitely the major, let us say, base materials we use. Yes, there were some significant price increases, but let us say based on our contracts, based on negotiation power, okay, we felt it, but not in a super strong way as of now. Prices went up, but prices went down again, and now they went up again.
At the end, we do have agreements with our customers, that we can partially forward that prices to our customers. You see in Q2, you see a small effect from price increases. This is a timing topic, for example, when we then forward the prices to our customers in Q3, for example, because that takes some time as the prices are adjusted, et cetera. The numbers are not too high, what you see in our result.
Perfect. Thank you.
By the way, there was never a shortage of materials, yeah. If you pay the price, there is never a shortage, yeah. That's in the beginning, the prices went up dramatically. Every supplier said, "Oh, I don't get anything." But at the end, it was not so bad.
That's what I've heard also from the chemicals industry. My second question maybe needs a bit more explanation. If you can go back to page five of your presentation, which was in the slides, it's very helpful to me. Can you walk us through the slide a bit with regard to profitability of those projects?
My understanding is if you're, let's say, not the owner of the idea, but the owner of the production and all the engineering and tooling you're doing and later the production, the project should be more profitable for you rather than when the person comes with a ready idea and you just have to make some kind of tooling and the production. Am I right? You have used these three different colors, yellow, blue and green. Would be helpful to understand where do you see the highest profitability in those three kind of projects? Thank you.
Yeah. Good question, yeah. I guess it is clear that if we do develop a product by our own, yeah, that at the end, the margin should be higher than if we are, let us say, the industrialization partner, and the scaling partner with somebody. But as these products are, let us say, at the current time, not on the market, and therefore it is hard to judge. But my expectation would be that if the products we develop by ourself, have the highest margin. Yeah. That is the expectation.
Okay. Thank you. Looking again on this chart, we can found something which is, I would say, not that filigree when it comes to the usage. We have something in the construction area. We have load carriers and stuff like this. Have you ever elaborated on moving into areas which need more filigree or less heavy stuff? For example, into the MedTech industry, for example.
In what kind of industry? Sorry.
MedTech. MedTech.
Okay.
MedTech.
Yeah, got it. Sorry, it was just for audience.
No worries.
One of our products you see here on that slide, and this is the product I can talk about because it was already published, is BoxIt. BoxIt, here we see a big potential in the medical industry. Yeah, so this will be definitely in use in that industry. We are trying a lot of things.
This is just an extract from what we are doing, what you can see on that page or on that slide. There is more, but we do not develop products together, let's say very small products. Our goal or our focus is more on, let's say, bigger products. BoxIt will be one example where we go in the MedTech industry, but all the other ones, they are not super small products.
Okay. No, you are not looking at single-use product in any kind of industry?
Yeah.
Okay. Yeah. Thank you. I step back. Thank you.
Thank you.
Thank you very much. We have not received any further questions in the meantime, not in our chat box or raised hand. So I would say we therefore come to the end of. Oh, and with that said, there is a question that just came in into our chat box. It says, "What are the requirements on the M&A front in terms of product fit, size of the deal, profitability?
Sorry, can you repeat the question, please?
Of course.
Okay.
It says, "What are the requirements on the M&A front in terms of product fit, size of the deal and profitability?
Okay, got it. It should be plastic products, right? It should be, let's say, or it can be in the same size as a group right now. We are not afraid about that. It must be a company, let's say, in critical financial situation. Then we would have a closer look, yeah.
There is not that much constraints about the size. Definitely not, yeah. Because I would say we, as a Polytec, we have very different kind of products and therefore a kind of complex portfolio. Sometimes you see competitors, they make more turnover than we with just one or two products or the same product family.
All right. Thank you so much. There is one more question that just came in. It says, "Profitability in Q2 was slightly lower compared to Q1. What are the reasons for that concerning EBITDA, EBIT, and net results?
First of all, I need to correct that, because in Q1 there was a special effect included, what we reported as well in Q1. There was the sale of our Belgium business, I guess, special effect in Q1 was EUR 1.7 million, EUR 1.8 million. If you exclude that, the profitability in Q2 was higher. Second, what I already mentioned, there is a small price increase in the raw material side. These are, let's say, two reasons to explain the question.
All right. Thank you. On another note, there is one more question left. It says: How about the influence of increased mineral oil prices on material costs?
It's basically the same as the question we already took. The mineral prices, they go to our products as a base product and therefore, yeah, there were some price increases, and yeah, we see increased material expenses, but on a, let's say, very small amounts in the Q3, Q2. Yeah, so it's not a material heavy effect in our balance sheet or in our P&L.
All right. Thank you very much. Ladies and gentlemen, no risen hands and no questions in our chat box anymore. I would say we do the second time, and we come to the end of today's earnings call.
Thank you so much for your interest in Polytec Holding AG, and if you have any further questions at a later time, please feel free to contact Paul Rettenbacher at Investor Relations. A big thank you also to you, Markus and Paul, for your presentation and your time. I wish you all a successful day, and I am handing over to you, Mr. Mühlböck, once again for your closing remarks.
Thank you. Thanks to all of you on the call for taking the time, and I wish all of you a nice day and look forward to welcoming you again on our next conference call to be held on 13th November, when we will present the figures of Q3. Until then, all the best. Have a relaxing summer break, and goodbye.