1.23 Segment reporting of continuing operations

Hydratec is organised along the lines of the following two operations, which are identified as two reportable segments:

Industrial Systems: taking a project-based approach, entire industrial systems are manufactured under their own brand names in the Industrial Systems segment.
Hightech Components: structural plastic components are developed and produced in the Hightech Components segment.

The two segments’ results are assessed at operating result level.

Besides the two segments, there are also head office activities and eliminations of intersegment positions and transactions. Head office activities relate to the operations listed below and head office-related projects.

Sales between segments take place at market prices. There is no asymmetric recharging of costs between individual group entities.

1.23.1 Breakdown by business segment

	Industrial Systems		Hightech Components		Total segments		Holding company expenses and eliminations		Total
x €1,000	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Supply of goods	64,110	71,420	94,728	102,091	158,838	173,511			158,838	173,511
Projects	92,775	83,742	10,641	12,852	103,416	96,594			103,416	96,594
Other revenue	876	99			876	99			876	99
Net revenue	157,761	155,261	105,369	114,943	263,130	270,204			263,130	270,204
Intersegment revenue	40	8	1,715	643	1,755	651	-1,755	-651	-	-
Total segment revenue	157,801	155,269	107,084	115,586	264,885	270,855	-1,755	-651	263,130	270,204
Consumption of materials and supplies	-74,155	-73,185	-41,234	-48,989	-115,389	-122,174	1,755	651	-113,634	-121,523
Gross margin	83,646	82,084	65,850	66,597	149,496	148,681			149,496	148,681
Depreciation and impairment	-3,431	-3,391	-6,332	-6,833	-9,763	-10,224	-285	-76	-10,048	-10,300
Personnel and other expenses	-54,961	-54,081	-51,558	-55,734	-106,519	-109,815	-2,516	-3,312	-109,035	-113,127
Operating result	25,254	24,612	7,960	4,030	33,214	28,642	-2,801	-3,388	30,413	25,254
Financial income and expenses	-667	-555	-1,037	-1,323	-1,704	-1,878	975	882	-729	-996
Result before tax	24,587	24,057	6,923	2,707	31,510	26,764	-1,826	-2,506	29,684	24,258
Taxes	-6,379	-5,826	-1,480	-839	-7,859	-6,665	470	645	-7,388	-6,020
Share of result from participating interest	1,811				1,811				1,811	-
Net result from continuing operations	20,020	18,231	5,443	1,868	25,463	20,099	-1,357	-1,861	24,107	18,238

Segment assets	161,184	148,470	80,417	90,024	241,601	238,494	-19,437	-22,076	222,164	216,418
Segment liabilities	88,366	92,970	37,511	47,543	125,877	140,513	-20,969	-28,880	104,908	111,633
Investments in tangible/intangible fixed assets	1,681	2,633	3,175	4,197	4,856	6,830			4,856	6,830

1.23.2 Breakdown by geographical origin of the segments

	Netherlands		Outside the Netherlands		Total
x €1,000	2025	2024	2025	2024	2025	2024
Net revenue	212,125	213,145	51,005	57,059	263,130	270,204
Segment assets	177,566	165,230	44,598	51,188	222,164	216,418
Investments in tangible/intangible fixed assets	3,192	4,038	1,664	2,792	4,856	6,830

1.23.3 Breakdown by geographical revenue distribution by market

x €1,000	2025		2024
Netherlands	45,055	17.1%	53,469	19.8%
Rest of Europe	87,106	33.1%	87,140	32.2%
Asia	42,301	16.1%	45,320	16.8%
North America	67,157	25.5%	66,465	24.6%
South America	4,744	1.8%	7,858	2.9%
Africa	15,355	5.8%	7,719	2.9%
Oceania	1,412	0.5%	2,233	0.8%
Total	263,130	100%	270,204	100%

1.23.4 Breakdown of revenue by type

x €1,000	2025		2024
Supply of goods	160,207	60.9%	173,510	64.2%
Projects	102,047	38.8%	96,595	35.7%
Other revenue	876	0.3%	99	0.0%
Total	263,130	100%	270,204	100%

Other revenue relates to revenue from service, installation and other services.

There was no customer in 2025 that was responsible for more than 10% of revenue (2024: none).

1.23.5 Breakdown of revenue by meeting performance obligations

x €1,000	2025		2024
Performance obligations met over a period	160,207	60.9%	173,511	64.2%
Performance obligations met at a point in time	102,923	39.1%	96,693	35.8%
Total	263,130	100%	270,204	100%

1.23.6 Contract balances

The list of receivables, contract assets and contract liabilities arising from contracts with customers is shown below.

x €1,000	Note	2025	2024
Accounts receivable	1.34	40,820	38,934
Amounts received in advance	1.44	15,762	15,193
Contract assets		6,692	11,396
Contract liabilities		27,017	30,916

Amounts received in advance relate to projects that have not yet started but for which an advance payment has been received. The projects for which an advance payment was received at the end of last year were launched and/or delivered in 2025. The amounts received in advance have increased as there were relatively more projects with pre-invoicing at the end of 2025 compared to 2024. The decrease in contract liabilities was caused by having fewer projects in the early stages of production with advance billing, in contrast to 2024. The decrease in contract assets is due to the fact that, unlike 2024, there are fewer ongoing projects that have yet to be invoiced. The vast majority of contractual obligations have maturities of less than one year. The contractual obligations recognised at the end of 2024 fully led to revenue in 2025. Contract assets relate to projects on which more costs have been incurred than invoiced.

The performance obligations on current contracts are expected to be fulfilled within one year (practical expedient IFRS 15.121).

Vorige 1.22 Accounting policies for the cash flow statement

Volgende 1.24 Discontinued operations

The management report as referred to in Part 9 of Book 2 of the Dutch Civil Code monitors the elements from the foreword to the historical summary inclusive. This version of the annual financial reporting of Hydratec Industries N.V. for the financial year ending on 31 December 2025 is not presented in the ESEF format as specified in the regulatory technical standards for ESEF (Delegated Regulation (EU) 2019/815). The set of ESEF reports can be downloaded at the download page.