Financial developments

Result for 2025

In 2025, a revenue is realised of €263.1 million. Revenues decreased with €7.1 million compared to 2024 (€270.2 million). The Industrial Systems segment experienced a marginal increase in revenue, while the Hightech Components segment showed a marked decrease in revenue compared to the previous year. The margin (56.8%) improved in 2025 against 2024 (55.0%).

Operating costs (total operating costs minus consumption, materials and consumables) amounted to € 119.1 million in 2025, which is € 4.3 million lower than in 2024. This amount includes one-off expenditure of € 1.6 million, related to project costs for the closure of the Helvoet site in Hellevoetsluis. In the operating costs of 2024 of € 123.4 million, one-off expentidures of € 3.5 million was included. These one-off expenditures were related to project costs to prepare for the closure of Helvoet’s site in Hellevoetsluis (€ 2.1 million), costs for the proposed delisting (€ 1.2 million) and acquisition costs (€ 0.2 million).

Overall, the normalised operating costs for 2025 of €117.5 million decreased with €2.5 million compared to 2024. The decrease was mainly attributable to the Hightech Components segment, the Industrial Systems showed a marginal increase in the normalised operating cost.

The operating result is € 30.4 million for 2025, which is an increase of €5.2 million compared to last year. The normalised result for 2025 is € 32.0 million, which is an increase of €3.3 million compared to 2024. The 2025 tax rate was 24.9%, in line with 2024 (24.8%). The net result in 2025 was € 24.1 million, an increase of € 5.9 million on the previous year (€ 18.2 million). The net result for 2025 also includes the share in the net result of Proqraft Holding B.V. of € 1.8 million.

Cash flow

The operating cash flow in 2025 was €33.5 million (2024: €37.5 million), a decrease of €2.8 million compared with 2024. Despite a higher EBIT, the decrease is mainly due to changes in operating capital and provisions.

The cash flow in investing activities decreased with € 15.7 million compared to 2024, the decrease is caused by the purchase of a 60% share in 2024 of Proqraft Holding B.V. participation, which resulted in a higher cash outflow in 2024.

Moreover, payment of dividends, repayment on long-term loans and lease liabilities have resulted in a financing cash flow of € 12.9 million. The net cash flow was € 16.4 million positive compared with € 1.6 million negative in 2024.

Financial position

In 2025, the balance sheet total increased to € 222.2 million (2024: €2 16.4 million). This increase is mainly explained by a sharp increase in the bank position. In addition, tangible fixed assets and contract assets decreased.

The increase in the balance sheet total in the liabilities is caused by an increase in shareholders’ equity and provisions. On the other hand, both non-current and current liabilities decreased. The credit facility was €39.5 million as at 31 December 2025 (31 December 2024: €41.0 million), Hydratec did not withdraw any balances as at the balance sheet date (31 December 2024: €0.0 million). The credit facility also covers the bank guarantees issued.

Solvency at the end of 2025 was 52.8% compared with 48.4% in 2024 and has markedly increased. The debt/EBITDA ratio amounts to 0.31 at the end of the year, which is well within the agreements set out in the bank covenant.

Financial result of Industrial Systems

Revenue at Industrial Systems was 1.6% higher in 2025 than 2024. Within this segment, Rollepaal’s and Lan’s revenue both increased caused by a well-filled order book at the beginning of the year and a good order intake throughout 2025. On the other hand, revenue of Royal Pas Reform decreased compared to 2024. Revenue within this segment proved to be volatile in 2025 too.

Expressed as a percentage, the margin remained at the same level at 53.0%.

Costs were 1.6% higher in 2025 than in 2024 due to collective bargaining adjustments and a limited increase in the number of FTEs, as well as inflation. As the cost increase was offset by higher revenue, the operating result for 2025 of € 25.3 million increased modestly compared with the previous year (2024: € 24.6 million), which is 16.0% (2024: 15.9%) of revenue, i.e. above our target.

Financial result of Hightech Components

Hightech Components’ revenue decreased with € 8.5 million compared to 2024. This is due to a decrease in revenue in the mobility and food sectors. The gross margin increased as a percentage compared with last year, which meant that – despite the lower revenue – the absolute gross margin remained in line with 2024.

In 2025, operating costs came to €57.9 million, a decrease of €4.7 million compared to the previous year. This is the result of strict cost management and consolidation of production sites in the Netherlands on the one hand, and lower one-off costs in 2025 (€1.6 million) compared with 2024 (€2.1 million) on the other hand.

Normalised operating costs for 2025, adjusted for one-off expenditure of € 1.6 million related to project costs for the closure of the Helvoet site in Hellevoetsluis, have decreased by € 4.2 million compared with those for 2024. This is mainly because of lower personnel costs (€ 2.6 million), lower depreciation costs (€ 0.5 million), lower cost of sales (€ 0.6 million) and lower premises costs (€0.5 million). Despite challenging market conditions, the normalised operating result of € 9.6 million showed a sharp improvement on the previous year (2024: € 6.1 million).

Proposed dividend

Earnings per share in 2025 amounted to €18.55 (2024: €14.04). The proposal to the General Meeting of Shareholders is to set the dividend for the 2025 financial year at €8 per share. This dividend payment is in line with the policy of paying out at least 40% of the result after tax, excluding one-off income. The net result after the dividend for 2025 will be added to the other reserves.

Outlook and expectations

Hydratec started 2026 with a well-filled order book. The market position of the companies in their own niche is as strong as ever. In 2026, our equity stake in Proqraft Holding B.V. was increased to 80%. As a result, Eqraft® will be fully consolidated from 2026.

We do not expect any changes in our personnel, investment and financing policies in 2026. However, in view of macroeconomic developments such as volatile exchange rates, trade restrictions, supply chain uncertainties and inflation, it is not possible to make any concrete statements about 2026.

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.