Interim report
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H1 2025 SBO MAINTAINS DOUBLE-DIGIT EBIT MARGIN IN A CHALLENGING MARKET • Sales declined due to market conditions, but remained solid at MEUR 253.6 • EBITDA at MEUR 44.5 with a margin of 17 .5%; EBIT of MEUR 28.6 and a margin of 11.3% • Free cash flow of MEUR 18.4 including investments in facility expansions in the Middle East and Vietnam • Precision T echnology (PT) continues to be impacted by low demand; Energy Equipment (EE) with signifi- cantly improved performance • Acquisition of 3T Additive Manufacturing Ltd. in August to further strengthen SBO`s position in 3D metal printing • Renaming to SBO AG successfully completed »Despite a significantly slower market, we kept SBO firmly on track in the first half of 2025. We are managing this situation with cost discipline and remain focused on our strategic initiatives. We are successfully driving forward technological innovations, diversifying our business, and capitalizing on market opportu- nities - even in a demanding environment. Thanks to our strong financial position and our global locations we are well positioned and we execute on our strategy, as also demonstrated by our acquisition of 3T Additive Manufacturing Ltd.« KLAUS MADER, CEO OF SBO UNIT 1 – 6/2025 1 – 6/2024 Sales MEUR 253.6 288.1 EBITDA (Earnings before interest, taxes, depreciation, and amortization) MEUR 44.5 53.1 EBITDA margin % 1 7. 5 18.4 EBIT (Earnings before interest and taxes) MEUR 28.6 36.6 EBIT margin % 11.3 12.7 Profit before tax MEUR 26.0 33.8 Profit after tax MEUR 18.5 25.0 Cash flow from operating activities MEUR 3 7.1 42.2 Free cash flow MEUR 18.4 2 7.7 Liquid funds as of 30 June 2025 / 31 December 2024 MEUR 278.9 314.7 Net debt as of 30 June 2025 / 31 December 2024 MEUR 82.3 56.0 Equity ratio as of 30 June 2025 / 31 December 2024 % 4 7. 0 50.0 Headcount as of 30 June 2025 / 31 December 2024 1,526 1,596 HALF-YEAR FINANCIAL REPORT
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BUSINESS HIGHLIGHTS H1 2025 2 In the first half of 2025, SBO achieved important milestones in the implementation of its strategy. The legal change of the company name to SBO AG and the progress made in the four central pillars of the strategy – diversification, market expansion, technology leadership, and operational excel- lence – further strengthened the company’s foundation for sustainable, profitable growth. New company name: With its entry in the commercial register, SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft officially became SBO AG on 1 July 2025. This step aligns the legal name with the new brand identity introduced in March and underscores SBO’s transformation into a global precision technology group with an expanded industrial focus. Technology leadership: SBO successfully implemented several significant technological innovations in the first half of 2025. These include the market launch of the new “High Dogleg RSS T ool, ” which enables tighter borehole trajectories, expanded directional control and thus U-turn drilling. In addition, SBO implemented bidirectional commu- nication between the Rotary Steerable System (RSS) and Measurement-While-Drilling (MWD) components enabling faster, data-driven decisions during drilling. Another mile - stone is the introduction of a high-performance motor with integrated data sensor, which was launched on the market in the second quarter of 2025 following successful field trials. These developments strengthen SBO’s competitive posi- tion and demonstrate our commitment to providing smarter, more efficient and highly reliable drilling solutions. 1 For further information on the acquisition of 3T Additive Manufacturing Ltd. refer to “Outlook” Market expansion: With the grand opening of its expanded site in Saudi Arabia in April 2025, SBO has significantly ex- panded its presence in the Middle East. The new location in Dammam doubles SBO’s operating space and consolidates local activities under one roof. This enables closer cooper- ation with regional customers and partners, and strengthens SBO’s position in one of the most important strategic growth markets in the energy industry. At the same time, we are committed to sustainability: a solar power system at the site will reduce annual CO2 emissions by around 450 tons. Operational excellence: The expansion of our manufactur- ing site in Vietnam, which was completed in June 2025, is an important step toward increasing our global delivery flexibility and underscores our commitment to operational excellence. With over 12,000 m2 of production space and state-of-the-art high-precision manufacturing capabilities the site supplies customers worldwide, with a focus on the Asia-Pacific region and the Middle East. The expansion not only contributes to operational efficiency, but also supports SBO’s sustainability goals through energy-efficient construc- tion and the installation of a solar power plant. Diversification: In the first half of the year, SBO consist - ently expanded its activities beyond oil and gas markets. In the fast growing area of Additive Manufacturing, SBO continues to expand its capabilities, attracting cutting edge programs in the space and aerospace, defense, and semiconductor industry, further validating its role in advanced industrial applications. With the acquisition of UK-based 3T Additive Manufacturing Ltd., a leading sup - plier of additive manufacturing solutions, SBO will further strengthen its position in this future-oriented technology.1 In the energy transition area, SBO successfully implemented BUSINESS HIGHLIGHTS IN H1 2025
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BUSINESS HIGHLIGHTS H1 2025 3 its first geothermal energy projects in New Zealand and Indonesia. Geothermal energy is also gaining momentum in the US and in Europe: In the Netherlands and Austria, SBO is supplying equipment for innovative drilling projects that use advanced technologies under challenging condi- tions. In addition, SBO supported its customers in a carbon capture and storage (CCS) project in the US and suc - cessfully accompanied the drilling of an exploration well in Pennsylvania to a depth of 18,000 feet. At the same time, SBO is supporting the development of helium deposits in Wyoming, a strategically important future area with growing significance for the energy transition. These projects under- score SBO’s evolving role as a provider of technologies for low-emission applications and sustainable energy sources.
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MARKET ENVIRONMENT 4 Market environment 1 Bloomberg, CO1 Brent Crude and CL1 WTI Crude 2 Baker Hughes Rig Count 3 International Energy Agency (IEA), Oil Market Report, August 2025 4 International Energy Agency (IEA), Oil Market Report, August 2025 5 International Energy Agency (IEA), Global Gas Market Report Q3-2025 6 Bloomberg, NG1 Natural Gas Oil and Gas In the first half of 2025, the oilfield services sector faced a complex macroeconomic environment, shaped by con - tinued geopolitical tensions, tariff uncertainty, and volatile commodity pricing. These factors weighed on customer sentiment, particularly in North America but also interna - tionally, leading to a cautious investment climate and lower drilling activity. In addition, the OPEC+ group’s partial rever- sal of voluntary production cuts has raised concerns of a potential oversupply in the market and added pressure on crude oil prices. After averaging USD 73/barrel in Q1, Brent prices briefly fell below USD 60/barrel in April, marking a four-year low. Al - though prices stabilized somewhat in June, they remained well below those of 2024, averaging USD 66/barrel in the second quarter of 2025. The WTI benchmark mirrored this development, with an average of USD 68/barrel over the six-month period.1 The global rig count remained subdued, falling to 1,576 in May before partially rebounding to 1,600 by end June. This represents a 6% year-on-year decrease and a 4% decrease compared to the beginning of the year. In the United States, the rig count declined for nine consecutive weeks in the second quarter, with a drop to 554 units in June. Oil rigs fell to around 432 (a 10% decrease year-on-year), while gas rigs rose to approximately 109, reflecting a modest year-on-year increase in gas-targeted drilling. The international rig count fell to 913 rigs in June (compared to 957 in June 2024) and Canada saw a reduction of 28 rigs (-17%) year-on-year.2 Global oil demand continued to grow in the first half of 2025, albeit at a slower pace than previously forecast. Ac- cording to the International Energy Agency (IEA), average global oil demand rose to 103.6 mb/d in the second quarter of 2025, up from 103.0 mb/d in the same period last year. This increase was driven by demand recovery in Asia and higher demand in Africa. However, the IEA revised its full- year growth projection to +0.7 mb/d for 2025 – its lowest growth rate since 2009 with the exception of 2020 - citing economic headwinds and trade-related uncertainty.3 Oil supply rose to 105.0 mb/d in the second quarter of 2025 – a substantial 1.9 mb/d above last year’s levels. Over the course of the summer, OPEC+ announced the full unwinding of the voluntary production cuts of 2.2 mb/d that have been in place since 2023 by September 2025. World oil supply is now forecast to rise by 2.5 mb/d this year to 105.5 mb/d.4 Natural gas markets have seen similar developments. Fol- lowing a strong expansion in 2024, global gas demand rose at a slower rate in the first half of 2025 (+1% or less than 20 bcm). Macroeconomic uncertainty, together with tight supply fundamentals and relatively high prices, weighed on natural gas consumption, particularly in price-sensitive mar- kets in Asia. While global LNG supply increased by 4% (or 12 bcm) year-on-year in H1 2025, overall supply fundamentals remained tight. The demand outlook for the full year was downgraded mid-year to +1.3%, as the tight market con - ditions impact global demand growth, especially in Asia.5 The Henry Hub spot price averaged USD 3.67/MMBtu in H1 2025, compared to USD 2.11 per MMBtu in H1 2024.6
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MARKET ENVIRONMENT 5 Energy T ransition Spendings on geothermal energy are further on the rise in 2025, as countries seek sustainable alternatives to fossil fuels and enhance their energy security. Geothermal ener- gy will serve as a baseload source in the energy mix of the future. It is being used for both electricity and heat gener- ation. The development of enhanced geothermal systems allows access to deeper and hotter resources previously unreachable by traditional drilling methods. This has driven market growth in recent years leading to an overall market of USD 70 billion in 2024. 7 The global geothermal power capacity reached 15.8 GW in 2024 and is expected to grow to 20.8 GW in 20308 with a significant ramp up to over 800 GW expected by 20509, driven by the immense technical potential of next-generation geothermal systems. Recent studies and reports, such as those from Project InnerSpace10, underscore geothermal’s growing potential — particularly as a competitive source of clean baseload electricity for collocated AI data centers. Looking at the estimated AI driven growth in electricity demand for the US alone, an additional 41 GW in power capacity would be needed by 2030.11 Enhanced geothermal systems (EGS) and Advanced closed-loop systems (ACLs) are ideally positioned for the 24/7 , high-resilience, high-capacity demands of data centers, and offer an additional critical benefit: cooling can be directly integrated into the energy delivery system. By leveraging knowledge transfer from the oil and gas industry, technology advancements and consistent project invest- ments, the levelized cost of energy (LCOE) of next-genera- tion geothermal technology are projected to come down to USD 45 - 65 per MWh within the next decade.12 7 Fortune Business Insights, February 2025 8 Statista.com 9 The Future of Geothermal Energy, IEA 2024 10 https:/ /projectinnerspace.org/ 11 Powering the AI Revolution, Project InnerSpace, July 2025 12 McKinsey & Company, July 2025 13 VoxelMatters 2024 14 Wohlers Report 2024 15 Metal AM Magazine, Summer 2025 As electricity demand is surging, geothermal energy pro - vides a competitive, low-carbon alternative thereby paving the way for the future of energy and AI. Industrial Sectors 3D metal printing, a foundational technology in additive manufacturing (AM), has evolved from a prototyping solu- tion into a strategic method for producing high performance, precision components. Technologies such as Direct Metal Laser Sintering (DMLS) and other Powder Bed Fusion (PBF) processes enable the production of lightweight, complex, and functionally optimized parts that are difficult or impossi- ble to manufacture using conventional methods. The global market for outsourced metal AM services, third-party provid- ers offering contract manufacturing of metal parts, was esti- mated at USD 1.1 billion in 2024, with a projected compound annual growth rate of over 20% through 2030.13 A broader market definition, which also includes compa - nies producing metal AM parts in-house for their own use, placed the market at USD 2.9 billion in 2023, with expecta- tions to reach USD 7 .2 billion by 2029.14 Growth is being driv- en by increasing adoption in space, aerospace, defense, energy, and industrial sectors, alongside the rising strategic importance of AM in enabling shorter lead times, enhanced supply chain resilience, and greater design flexibility.15 These dynamics reinforce the long term case for investing in additive manufacturing as a critical pillar of next generation precision manufacturing.
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BUSINESS DEVELOPMENT 6 Business development The first half of 2025 was marked by significant market un- certainty and subdued investment activity. SBO addressed the market challenges proactively with targeted measures such as optimizing supply chains and adjusting capacities. Despite the challenging environment, which was visible in the financial performance, SBO continued to achieve dou- ble-digit operating margins. Bookings of MEUR 216.9 (1–6/2024: MEUR 248.7) and the Group’s order backlog, which stood at MEUR 103.3 at the end of June (31 December 2024: MEUR 141.8), reflect the sustained decline in customer spending. SBO’s sales reached a solid MEUR 253.6 in the first half of the year (1–6/2024: MEUR 288.1), with the drop in sales in the Pre- cision Technology (PT) division (-31.2%) partially offset by the positive development in the Energy Equipment (EE) division (+11.0%). Earnings before interest, taxes, depreciation and amorti- zation (EBITDA) amounted to MEUR 44.5 and, despite the decline in sales, remained largely stable at a margin of 17 .5% (1–6/2024: MEUR 53.1, 18.4%), as the lower capacity utili- zation in the PT division was mostly offset by a significant improvement in earnings in the EE division. Profit from op- erations (EBIT) amounted to MEUR 28.6 with a margin of 11.3% (1–6/2024: MEUR 36.6, 12.7%). Profit before tax totaled MEUR 26.0 compared to MEUR 33.8 last year. Profit after tax reached MEUR 18.5 (1-6/2024: MEUR 25.0), resulting in EUR 1.18 earnings per share (1-6/2024: EUR 1.58). 131.6 146.0 156.5 107.6 1-6/2024 1-6/2025 PT EE +11.0% -31.2% -12.0% SALES BY DIVISION in MEUR 288.1 253.6 1-6/2024 1-6/2025 PT EE EBITDA in MEUR | as a % of sales 18.4% 17.5% 53.1 44.5
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BUSINESS DEVELOPMENT 7 Segments The SBO Group’s business is divided into two segments: Precision Technology (PT) and Energy Equipment (EE). In the Precision T echnology division, SBO specializes in high-precision metal components ranging from complex steel parts to additive manufacturing solutions for indus - tries requiring maximum accuracy and performance. In the Energy Equipment division, SBO provides high-tech equip- ment for directional drilling and well completion, including high-precision flow control products. These solutions are designed for extreme conditions and are used in environ- ments with high temperatures and high pressures. SBO thus serves important industries, including oil and gas, the energy transition, and other industrial sectors. The Precision Technology division continued to be af - fected by an uncertain market environment and declining customer demand in the first half of 2025. Geopolitical ten- sions, the lower oil price, and ongoing uncertainty about new US trade tariffs contributed to restrained customer sen- timent. Sales declined by 31.2% to MEUR 107 .6 (1–6/2024: MEUR 156.5), which affected operating results notably: EBITDA decreased to MEUR 22.4 (1–6/2024: MEUR 40.6), albeit at a high EBITDA margin of 20.8% (1–6/2024: 26.0%). EBIT halved year-on-year in absolute terms to MEUR 16.4 (1–6/2024: MEUR 35.6) but remained at a solid margin of 15.3% (1-6/2024: 22.8%). SBO responded to the decline in demand with an adjustment of capacities and cost struc- tures, while securing core competencies and pursuing stra- tegic initiatives. The Energy Equipment division significantly improved its performance in the first half of 2025, despite the continu- ing downward trend in drilling and completion activities in the US. Supported by positive demand for SBO’s techno - logical innovations especially in the well completions area and the international market expansion measures taken, the business generated 11.0% growth, with sales increasing to MEUR 146.0 (1–6/2024: MEUR 131.6). Operating results also improved significantly compared to the same peri - od last year, which was affected by some non-recurring items. EBITDA almost doubled to MEUR 25.6 (1–6/2024: MEUR 13.5), and the EBITDA margin improved to 17 .6% (1–6/2024: 10.2%). EBIT rose to MEUR 16.0 (1–6/2024: MEUR 2.2) with an EBIT margin of 10.9% (1–6/2024: 1.7%). The development was mainly driven by market share gains in the US and improved operational efficiency. Cash Flow SBO generated an operating cash flow of MEUR 37 .1 (1-6/2024: MEUR 42.2) and free cash flow of MEUR 18.4 (1-6/2024: MEUR 27 .7), both impacted by lower earnings. Capital expenditure for property, plant and equipment and intangible assets (excluding right of use assets) totaled MEUR 19.7 (1-6/2024: MEUR 16.7), including investments in the facility expansions in the Middle East and Vietnam. Key Balance Sheet Figures SBO maintained its excellent financial position in the first half of 2025. The company’s cash and cash equiv - alents amounted to MEUR 278.9 as of 30 June 2025 (31 December 2024: MEUR 314.7). In addition to the dividend payment of MEUR 27 .6 the decline in cash bal - ance was driven by unfavorable effects of exchange rate changes (MEUR 13.9). Equity stood at MEUR 418.6 as of 30 June 2025 (31 December 2024: MEUR 492.7), impacted by MEUR 65.1 unfavorable currency translation effects, mostly due to the weakening of the US dollar from 1.0389 on 31 De- cember 2024 to 1.1720 on 30 June 2025. This resulted in an equity ratio of 47 .0% (31 December 2024: 50.0%). Net debt increased to MEUR 82.3 (31 December 2024: MEUR 56.0), also impacted by the weak US dollar. As a re- sult, the gearing ratio stood at 19.7% (31 December 2024: 11.4%). SBO’s high cash position and financial stability provide a so- lid foundation for the execution of its growth strategy. The company remains committed to allocating capital prudently to drive innovation, support diversification and pursue long- term value creation.
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ESG PROGRESS AND HALF-YEAR HIGHLIGHTS 8 SBO made solid progress in the ESG area in the first half of 2025 and confirms its continued commitment to sustainable and responsible business practices. Scope 1 and Scope 2 emissions totaled 6,995 tons of CO2e in the first half of 2025, representing an increase of 3.1% com- pared to the previous year (1-6/2024: 6,782 t CO2e). While Scope 1 emissions increased by 25.3% to 2,472 t CO2e, Scope 2 emissions (market-based) were reduced by 6.0% to 4,523 t CO2e - primarily due to lower electricity consumption and increased use of renewable energy sources. The increase in Scope 1 emissions was mainly driven by higher natural gas consumption for heating and the purchase of company-owned trucks, which shifted transport-related emissions from Scope 3 to Scope 1 in accordance with GHG Protocol guidelines. CO2e in T Unit 1 – 6/2025 1 – 6/2024 SCOPE 1 CO2e in tons 2,472 1,973 SCOPE 2 (market based) CO2e in tons 4,523 4,810 TOTAL SCOPE 1+2 CO2e in tons 6,995 6,782 Emission intensity Scope 1+2 CO2e in tons 27 .6 23.5 The increase in emission intensity (Scope 1+2) from 23.5 tons CO 2e per MEUR sales in 1–6/2024 to 27 .6 tons CO2e per MEUR sales in 1–6/2025 is primarily due to lower overall capacity utilization and a market-driven shift in the product mix. ESG PROGRESS AND HALF-YEAR HIGHLIGHTS
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ESG PROGRESS AND HALF-YEAR HIGHLIGHTS 9 Energy Consumption: SBO increased its total energy consumption by 5.2% to 27 ,948 MWh (1-6/2024: 26,575 MWh), primarily due to a higher consumption of natural gas (+13.7%) and other energy sources (+35.6%). The reasons for these increases included an intensified use of heating systems due to colder weather conditions and an increase in the company’s vehicle fleet. In contrast, electricity consumption decreased by 3.3%. The share of renewable energy in electricity consumption currently stands at 49% (1-6/2024: 46%). SBO also plans to further reduce its CO2 footprint by adjusting its electricity mix in favor of renewables - especially at sites where non-renewable sources still dominate. in MWh 1 – 6/2025 1 – 6/2024 Electricity 16,909 17 ,488 thereof from renewable sources 8,219 8,075 thereof from non-renewable sources 8,690 9,413 Natural gas 6,666 5,863 All other sources 4,373 3,224 TOTAL ENERGY CONSUMPTION 2 7, 9 4 8 26,575 Water Withdrawal & Waste Generation: Water withdrawal in the first half of 2025 totaled 31,448 m3, representing a 34.4% decrease compared to the previous year (1-6/2024: 47 ,944 m3). Roughly half of the withdrawal in the first half of 2025 came from own wells (14,890 m3), which saw a 49.0% reduction. The withdrawal from the public water supply (16,558 m3) declined by 11.6%. in cbm 1 – 6/2025 1 – 6/2024 Water withdrawal 31,448 4 7, 9 4 4 thereof from own well 14,890 29,205 thereof from the public water system 16,558 18,739 Waste generation increased from 4,485 tons to 5,321 tons in the first half of 2025. This included 4,699 tons of non-hazardous waste (1-6/2024: 4,009 tons) and 622 tons of hazardous waste (1-6/2024: 476 tons). The increase in waste volumes results from a shift in the product mix and increased operational activity in the Energy Equipment division. in tons 1 – 6/2025 1 – 6/2024 Total waste 5,321 4,485 thereof non-hazardous waste 4,699 4,009 thereof hazardous waste 622 476
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ESG PROGRESS AND HALF-YEAR HIGHLIGHTS 10 Photovoltaic systems for more green energy: Following the successful commissioning of photovoltaic systems in Ternitz, Houston, and Dubai, SBO continued to expand its use of solar energy in 2025. The PV system in Dubai, operational since late 2024, already enabled full coverage of local electricity demand and avoided 122 tons of CO2 emissions in the first half of 2025. Building on this progress, new PV systems have since been installed and commissioned at our sites in Mexico and Saudi Arabia, further strengthening our renewable energy infrastructure. At the newly expanded facility in Dammam, Saudi Arabia, a large-scale solar system was installed that will reduce CO2 emissions by approximately 450 tons annually, supporting SBO’s target to cut Scope 1 and 2 emissions by 30% by 2030. These investments mark a significant step in SBO’s global sustainability journey and underline the group’s commitment to climate protection, energy transition, and regional integration. Implementation of CSRD and ESRS: In the first half of 2025, SBO achieved another important milestone in sustainability reporting. The first CSRD-compliant sustainability report 2024 was audited and published. This report meets the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), pro- viding comprehensive documentation of the environmental, social, and governance (ESG) aspects of our business model. With the publication of the audited CSRD report, we demonstrate our strong commitment to transparency and responsibility. Strategic execution and future goals: The successful implementation of the CSRD requirements establishes a solid founda- tion to deepen and continuously improve our ESG efforts and reporting in the future. Moving forward, a particular focus will be placed on optimizing data collection and further integrating sustainability metrics into corporate management.
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11 OUTLOOK Outlook 1 Evercore ISI, July 2025 The latest US trade agreements have brought some clarity, but uncertainty in global trade policies continues to weigh on demand. Persistently low commodity prices and the concern of a potential oversupply in the oil market lead to continued investment restraint. The resulting slowdown in the industry is now clearly evident. Despite short-term fluctuations due to geopolitical tensions, oil prices remain under pressure. Ongoing economic un - certainty and the risk of a possible oversupply are causing our customers to adopt cautious investment plans. Global spending on exploration and production is now expected to decline by 2% in 2025, particularly in the US (-5%) – a trend reversal in spendings is expected only from mid-2026 onwards.1 Against this backdrop, SBO expects demand in the Preci- sion Technology (PT) division to remain subdued in the second half of the year. SBO will therefore continue to fo- cus on strict cost discipline and capacity adjustments in this division in order to actively navigate the current develop - ments. At the same time, we will drive the expansion of for- ward-looking business areas such as additive manufactur- ing, which will gain in importance in SBO’s mid- to long-term business development. In the Energy Equipment (EE) division, SBO expects to per- form better than the overall market. Although the decline in drilling and completion activities in the US is weighing on the business, SBO expects to benefit from the successful market introduction of technological innovations. By ad - vancing technological leadership and optimizing operational efficiency, SBO is actively pursuing market share growth. In international markets, positive momentum continues due to market expansion measures taken. Despite the current market headwinds, SBO is well posi - tioned for the long term to take advantage of future market opportunities. The rising global energy demand and the im- plementation of our strategy – from market expansion and technology leadership to diversification into new business areas – create attractive growth opportunities. As part of its strategic diversification, SBO took another im- portant step on 19 August 2025: with the agreement to ac- quire 3T Additive Manufacturing Ltd., a leading UK provider of industrial 3D metal printing solutions, SBO is consistently driving the expansion of its position in this attractive niche market. 3T Additive Manufacturing Ltd. operates a fully inte- grated production facility, serves an international customer base across various high-tech industries, and in 2024 gen- erated sales of around MGBP 5. Through the acquisition, SBO gains access to established customer relationships, modern production infrastructure, and a highly qualified team, enabling it to further accelerate its growth strategy in the field of additive manufacturing. This acquisition under- scores SBO’s clear commitment to investing in forward-look- ing markets and demonstrates its ability to successfully ex- ecute its long-term strategic initiatives. Completion of the transaction remains subject to regulatory approvals. At the same time, we are further optimizing our operation- al setup to enhance customer proximity, accelerate time- to-market, and fully leverage the strengths of our global footprint. Our focus remains on expanding our core com - petencies, making efficient use of global resources, and consistently implementing our strategic initiatives. SBO is therefore well positioned to successfully exploit market opportunities and remains committed to its strategic goals.
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12 RISK REPORT Risk Report The nature of SBO’s business risks in the first half of 2025 has not changed significantly compared to the risks pre - sented in the 2024 Annual Report. However, geopolitical conflicts and the evolving global trade policy environment, particularly the volatile tariff policy of the US, continue to create uncertainty with further impact on supply chain dy - namics and customers’ spending restraints. Nevertheless, SBO’s global footprint has a risk-mitigating effect in this re- gard. SBO refers to all risks explained in the 2024 Annual Report and recommends that this report on the first half of 2025 always be read in conjunction with the risk report in the 2024 Annual Report.
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ABOUT SBO 13 SBO at a glance SBO AG is leading in the manufacture of high-alloy, non-mag- netic steels, high-precision components and high-tech equipment for the energy sector and other industrial sec - tors. The global precision technology group, headquartered in Ternitz, Austria, operates worldwide at more than 20 lo- cations with around 1,500 employees. The group delivers cutting-edge technologies backed by a highly innovative product portfolio and strong intellectual property. In its Precision Technology division, SBO specializes in high-precision metal components, ranging from complex steel parts to additive manufacturing solutions for indus - tries requiring maximum accuracy and performance. In the Energy Equipment division, SBO provides high-tech equip- ment for directional drilling and well completion, including high-precision flow control products. Designed for extreme conditions, these solutions perform in high-temperature and high-pressure environments, serving important industries including oil and gas, energy and other industrial sectors SBO is listed on the ATX index of the Vienna Stock Exchange (ISIN AT0000946652). More information: www.sbo.at ABOUT SBO
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14 THE SBO SHARE The SBO share The share of SBO AG has been listed in the Prime Market of the Vienna Stock Exchange for over 20 years and is part of the ATX, the leading Austrian index (ISIN AT0000946652). In total, 16,000,000 par value shares with a nominal value of EUR 1.00 each have been issued. The share started into the trading year at a price of EUR 29.80 and closed at EUR 30.15 on 30 June 2025. Market capitalization as of 30 June 2025 was MEUR 482 and approximately 67% of the shares were in free float at that date. Financial calendar 2025 20 November 2025 Q3 results 2025
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15 CONSOLIDATED PROFIT AND LOSS STATEMENT Consolidated profit and loss statement in TEUR 6 months period ended 3 months period ended 30.06.2025 30.06.2024 30.06.2025 30.06.2024 Sales 253,624 288,050 124,423 141,325 Cost of goods sold -177 ,709 -204,281 -88,282 -101,146 Gross profit 75,915 83,769 36,141 40,179 Selling expenses -19,438 -18,414 -9,828 -9,767 General and administrative expenses -23,748 -24,950 -11,195 -13,313 Other operating expenses -15,421 -9,874 -7,7 70 -3,458 Other operating income 11,328 6,106 2,994 2,390 Profit from operations 28,636 36,637 10,342 16,031 Interest income 4,738 2,226 1,953 1,196 Interest expenses -7, 4 2 1 -5,083 -3,717 -2,617 Financial result -2,683 -2,857 -1,764 -1,421 Profit before tax 25,953 33,780 8,578 14,610 Income taxes -7, 4 2 4 -8,815 -3,081 -4,600 Profit after tax 18,529 24,965 5,497 10,010 Average number of shares outstanding 15,759,465 15,759,465 15,759,465 15,759,465 Earnings per share in EUR (basic = diluted) 1.18 1.58 0.35 0.64
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16 CONSOLIDATED PROFIT AND LOSS STATEMENT Consolidated statement of comprehensive income in TEUR 6 months period ended 3 months period ended 30.06.2025 30.06.2024 30.06.2025 30.06.2024 Profit after tax 18,529 24,965 5,497 10,010 Other comprehensive income to be reclassified to profit or loss in subsequent periods Currency translation adjustment - subsidiaries -56,672 13,811 -38,499 4,152 Currency translation adjustment - other items1 -10,932 2,479 -7,1 4 0 779 Income tax effect 2,514 -570 1,642 -179 Other comprehensive income, net of tax -65,090 15,720 -43,997 4,752 TOTAL COMPREHENSIVE INCOME, NET OF TAX -46,561 40,685 -38,500 14,762 1 Mainly from net investments in foreign entities such as long-term receivables.
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17 CONSOLIDATED BALANCE SHEET Consolidated balance sheet ASSETS in TEUR 30.06.2025 31.12.2024 Current assets Cash and cash equivalents 278,855 314,686 Trade receivables 119,880 131,444 Other receivables and other assets 14,092 14,136 Inventories 164,790 188,668 Total current assets 577 ,617 648,934 Non-current assets Property, plant and equipment 140,249 145,061 Goodwill 130,823 146,809 Other intangible assets 11,819 14,496 Long-term receivables and assets 3,599 2,737 Deferred tax assets 26,603 28,072 Total non-current assets 313,093 337 ,175 TOTAL ASSETS 890,710 986,109
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18 CONSOLIDATED BALANCE SHEET LIABILITIES AND EQUITY in TEUR 30.06.2025 31.12.2024 Current liabilities Liabilities to banks 41,252 42,787 Current portion of long-term loans 2 7, 2 8 6 29,786 Lease liabilities 2,793 2,776 Trade payables 31,920 32,131 Income tax payable 9,803 9,867 Other liabilities 42,052 53,662 Other provisions 4,069 4,237 Total current liabilities 159,175 175,246 Non-current liabilities Long-term loans 292,660 298,071 Lease liabilities 8,598 8,273 Provisions for employee benefits 6,454 6,174 Other liabilities 4,826 4,975 Deferred tax liabilities 439 672 Total non-current liabilities 312,977 318,165 Equity Share capital 15,759 15,759 Capital reserve 59,526 59,526 Legal reserve 785 785 Other reserves 19 19 Currency translation reserve -1,626 63,464 Retained earnings 344,095 353,145 Total equity 418,558 492,698 TOTAL LIABILITIES AND EQUITY 890,710 986,109
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19 CONSOLIDATED CASH FLOW STATEMENT Consolidated cash flow statement in TEUR 6 months period ended 30.06.2025 30.06.2024 OPERATING ACTIVITIES Profit before tax 25,953 33,780 Depreciation, amortization and impairments 15,825 16,454 Other expenses and income -1,974 -8,675 Cash flow from profit 39,804 41,559 Change in working capital -2,738 603 Cash flow from operating activities 3 7, 0 6 6 42,162 INVESTING ACTIVITIES Expenditures for property, plant and equipment and intangible assets -19,720 -16,738 Other activities 1,066 2,254 Cash flow from investing activities -18,654 -14,484 Free cash flow 18,412 2 7, 6 7 8 FINANCING ACTIVITIES Dividend payment - 2 7, 5 7 9 -31,519 Change in financial liabilities -9,690 -7 ,923 Cash flow from financing activities -37 ,269 -39,442 Change in cash and cash equivalents -18,857 -11,764 Cash and cash equivalents at the beginning of the period 314,686 162,351 Effects of exchange rate changes on cash and cash equivalents -16,974 3,671 Cash and cash equivalents at the end of the period 278,855 154,258
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20 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Consolidated statement of changes in equity 2025 in TEUR Share capital Capital reserve Legal reserve Other reserves Currency translation reserve Retained earnings Total 1 January 2025 15,759 59,526 785 19 63,464 353,145 492,698 Profit after tax 18,529 18,529 Other comprehensive income, net of tax -65,090 -65,090 Total comprehensive income, net of tax 0 0 0 0 -65,090 18,529 -46,561 Dividend payment1 - 2 7, 5 7 9 - 2 7, 5 7 9 30 June 2025 15,759 59,526 785 19 -1,626 344,095 418,558 1 The dividend per share amounted to EUR 1.75. 2024 in TEUR Share capital Capital reserve Legal reserve Other reserves Currency translation reserve Retained earnings Total 1 January 2024 15,759 59,526 785 19 32,739 339,189 448,017 Profit after tax 24,965 24,965 Other comprehensive income, net of tax 15,720 15,720 Total comprehensive income, net of tax 0 0 0 0 15,720 24,965 40,685 Dividend payment1 -31,519 -31,519 30 June 2024 15,759 59,526 785 19 48,459 332,635 457 ,183 1 The dividend per share amounted to EUR 2.00.
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21 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS Note 1 BASIS OF PREPARATION The interim report as of 30 June 2025 has been prepared in accordance with the principles of the International Financial Reporting Standards (IFRS), rules for interim financial reporting (IAS 34), to be applied in the European Union. This report on the second quarter of 2025 of the SBO group has neither been audited nor reviewed by independent accountants. Note 2 ACCOUNTING POLICIES The accounting and valuation methods of 31 December 2024 have been applied basically unchanged. In this context, we refer to the consolidated financial statements for the year ended 31 December 2024. Note 3 SCOPE OF CONSOLIDATION During the reporting period no changes occurred in the scope of consolidation. NOTES TO THE INTERIM CONSOLI - DATED FINANCIAL STATEMENTS
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22 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS Note 4 SEASONALITY Business development of SBO is not subject to significant seasonal influences. Note 5 DIVIDEND PAID Total amount Number of ordinary shares Per share in TEUR in EUR For the business year 2024 paid in 2025 2 7, 5 7 9 15,759,365 1.75 For the business year 2023 paid in 2024 31,519 15,759,365 2.00 Note 6 SEGMENT INFORMATION Based on product groups and services offered and existing customer groups, respectively, SBO’s business operations are subdivided into two reportable segments “Precision Technology”, (PT) (formerly “Advanced Manufacturing & Services”, AMS) and “Energy Equipment”, (EE) (formerly “Oilfield Equipment”, OE). In the Precision Technology segment, SBO specializes in high-precision metal components ranging from complex steel parts to additive manufacturing solutions for industries requiring maximum accuracy and performance. In the Energy Equipment segment, SBO provides high-tech equipment for directional drilling and well completion, including high-precision flow control products. Management of the Company and the allocation of resources are based on the financial performance of these segments. Sales revenue as well as operating result (EBIT) are monitored separately by management for the purpose of making deci- sions on the allocation of resources. The amounts presented are a summary of the separate income statements of the individual companies included in the con- solidated financial statements. Individual holding adjustments and consolidation entries (elimination of intercompany profit and loss and other intragroup transactions) must therefore be taken into account in order to achieve the consolidated results presented. Results in the total column correspond to those in the profit and loss statement.
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 23 1 – 6/2025 in TEUR Precision Technology* Energy Equipment* SBO-Holding & Consolidation Group External sales 107 ,603 146,021 0 253,624 Intercompany sales 38,544 15,901 -54,445 0 Total sales 146,147 161,922 -54,445 253,624 EBITDA 22,360 25,629 -3,528 44,461 Profit / loss from operations (EBIT) 16,428 15,960 -3,752 28,636 * The name of the Advanced Manufacturing and Services segment was changed to Precision Technology. The name of the Oilfield Equipment segment was changed to Energy Equipment. 1 – 6/2024 in TEUR Precision Technology* Energy Equipment* SBO-Holding & Consolidation Group External sales 156,463 131,587 0 288,050 Intercompany sales 64,178 16,098 -80,276 0 Total sales 220,641 147 ,685 -80,276 288,050 EBITDA 40,611 13,468 -988 53,091 Profit / loss from operations (EBIT) 35,622 2,229 -1,214 36,637 * The name of the Advanced Manufacturing and Services segment was changed to Precision Technology. The name of the Oilfield Equipment segment was changed to Energy Equipment.
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 24 External sales were as follows: Precision Technology Energy Equipment in TEUR 1 – 6/2025 1 – 6/2024 1 – 6/2025 1 – 6/2024 Product sales 9 7,1 74 145,637 89,099 70,821 Services and repairs 7, 9 5 1 8,291 4,121 4,140 Rental revenue 2,478 2,535 52,801 56,626 Total 1 0 7, 6 0 3 156,463 146,021 131,587 North America 51,713 62,877 94,710 78,223 Europe 17 ,113 24,889 5,798 1,820 Middle East 6,591 6,915 29,525 24,635 Asia / Central Asia 26,554 54,917 8,826 8,339 Central and South America 536 909 5,516 15,609 Others 5,096 5,956 1,646 2,961 Total 1 0 7, 6 0 3 156,463 146,021 131,587 Note 7 FOREIGN EXCHANGE RATES The development of foreign exchange rates, and in particular the weakening of the USD during the first half of the year from EUR 1 = 1.0389 on 31 December 2024 to EUR 1 = 1.1720 on 30 June 2025, led to a significant reduction in all assets as well as equity and liabilities, with the exception of long-term loans, as of 30 June 2025. While in the first quarter of 2025 foreign exchange gains of MEUR 2.8 were achieved, foreign exchange losses of MEUR -1.7 were recorded in the second quarter of 2025. This change in foreign exchange effects of MEUR -4.5 and additional trans- lation-related negative effects compared to the first quarter of 2025 contributed significantly to the change in Profit from operations in the second quarter compared to the first quarter of 2025. Note 8 TANGIBLE AND INTANGIBLE FIXED ASSETS During the first six months of 2025 capital expenditures for tangible and intangible fixed assets (including right-of-use assets) amounted to MEUR 22.3 (1-6/2024: MEUR 17 .5). Purchase commitments for expenditure in property, plant and equipment as well as intangible assets as of 30 June 2025 were MEUR 6.4 (31 December 2024: MEUR 9.7).
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 25 Note 9 IMPAIRMENTS Geopolitical tensions and developments in global trade policy, particularly the volatile tariff policy of the US, caused increased uncertainty in the market environment and a decline in customer demand in the Precision Technology segment in the first half of 2025. This led to changes in assumptions regarding short- and medium-term expectations for customer spending in the Precision Technology segment. As a result, goodwill of the affected cash-generating units in the Precision Technology segment was tested for impairment as of 30 June 2025. In determining the value in use, scenario analyses with a detailed forecast period of five years were used for the relevant cash-generating units, with cashflows being adjusted based on current estimations of management reflecting decreased short-term and medium-term profit expectations in the current market environment. For the terminal value a fixed growth rate of 1% was applied. The impairment tests carried out as of 30 June 2025 did not result in any goodwill impairment. Note 10 RELATED PARTY TRANSACTIONS With respect to business transactions with related parties there were no substantial changes compared to 31 December 2024. All transactions with related parties are carried out at generally acceptable market conditions. For further information on indi- vidual business relations please refer to the consolidated financial statements of SBO for the year ended 31 December 2024. Note 11 FINANCIAL INSTRUMENTS The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities; Level 2: other techniques for which all inputs which have significant effects on the recorded fair value are observable, either directly or indirectly; Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on ob- servable market data.
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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 26 The financial instruments recognized at fair value in the consolidated financial statements and measured using level 2 are allocated as follows: in TEUR Balance sheet item 30.06.2025 31.12.2024 Assets Derivatives (FVTPL) Other receivables and other assets 1,046 6 Liabilities Derivatives (FVTPL) Other liabilities 0 -1,122 During the reporting period 2025 there were no transfers between the levels of fair value measurements. In general, if re- quired, transfers are carried out at the end of each reporting period. The foreign currency forward contracts are measured based on observable spot exchange rates. For each category of financial instruments which are amortized at acquisition costs, both the carrying value and the deviating fair value are provided in the table below: in TEUR 30.06.2025 31.12.2024 Level Carrying amount Fair value Carrying amount Fair value Liabilities Loans and liabilities to banks 2 -361,198 -360,648 -370,644 -369,228 For fixed rate loans received, the fair value was calculated by discounting the expected future cash flows using market interest rates. For variable rate bank loans and loans received and issued, discounting corresponds to current market rates, which is why the carrying amounts largely equal the fair values. Cash and cash equivalents, trade receivables and payables and all other items have mostly short residual terms. The carrying amounts therefore equal the fair values on the reporting date. Note 12 EVENTS AFTER THE REPORTING DATE On 19 August 2025, SBO was awarded the contract to acquire 100% of the shares in 3T Additive Manufacturing Ltd., UK, a leading provider of industrial 3D metal printing solutions, for a purchase price of MEUR 5.5. The acquisition is subject to regu- latory approvals in the UK, which, like the closing of the transaction, are expected in the second half of 2025. Apart from that, there were no other events of particular significance after the reporting date that would have changed the presentation of the Group’s net assets, financial position, and results of operations in the consolidated financial statements as of 30 June 2025.
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27 STATEMENT OF ALL LEGAL REPRESENTATIVES Statement of all legal representatives We confirm to the best of our knowledge that the con - densed interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting stand- ards and that the group management report of the second quarter gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the interim financial statements, and of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed. Klaus Mader Campbell MacPherson Ternitz, 20 August 2025 Executive Board
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Investor News For investors and all SBO stakeholders we offer a News Ser- vice, which keeps you in the know about SBO’s latest news and updates. Sign-up for our News Service at www.sbo.at and receive regular email news alerts. Follow us also on LinkedIn for event updates or interesting business insights. Let’s stay in touch! Monika Bell Head of Investor Relations +43 2630 315-253 investor.relations@sbo.at CONTACT AND LEGAL NOTICE: For further information about SBO and the possibility to sign up to our News Service please go to www.sbo.at. DISCLAIMER: Note on the half-year report: This half-year financial report is also available in the German language. In the event of discrepancies, the German version shall prevail. FORWARD-LOOKING STATEMENTS AND FORECASTS: This corporate publication contains information with forward-looking statements. Parts of those statements contain forecasts regarding the future de - velopment of SBO, SBO group companies, relevant industries and the markets. All these statements as well as any other information contained in this corporate publication are for information only and do not substitute professional financial advice. As such, this information must not be understood as a recommendation or offer to buy or sell SBO shares, and SBO cannot be held liable therefrom. Contact