SBO delivers resilient Q1 performance amid global uncertainty

Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed in the leading index ATX of the Vienna Stock Exchange, faced a challenging market environment shaped by declining oil prices, trade tensions, and shifting spending patterns in the industry. SBO’s performance was resilient with mixed dynamics across its divisions.

Bookings of MEUR 108.3 remained below the previous year (1-3/2024: MEUR 118.6) and slightly below Q4 2024 (MEUR 110.8). Sales reached MEUR 129.2 (1-3/2024: MEUR  146.7), with a 29.7% sales decline in Precision Technology (PT) being partly offset by a 10.5% growth in Energy Equipment (EE). The Group’s order backlog amounted to MEUR 124.1 at the end of March (31 December 2024: MEUR 141.8).

Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to MEUR  26.4 (1-3/2024: MEUR  28.8), as lower capacity utilization in the PT division was only partially offset by higher earnings in EE. EBITDA margin increased to 20.4% (1-3/2024: 19.6%) Profit from operations (EBIT) decreased to MEUR  18.3 (1-3/2024: MEUR  20.6), with an increased EBIT margin of 14.2% (1-3/2024: 14.0%).

Profit before tax totaled MEUR 17.4 compared to MEUR  19.2 last year. Profit after tax reached MEUR 13.0 (1-3/2024: MEUR 15.0), resulting in EUR 0.83 earnings per share (1-3/2024: EUR 0.95).

Solid balance sheet, cash flow further improved

Operating cash flow significantly increased to MEUR  22.7 (1-3/2024: MEUR  9.7) and also free cash flow rose substantially to MEUR  13.3 (1-3/2024: MEUR  2.5), mainly due to lower working capital requirements. Capital expenditure for property, plant and equipment and intangible assets (excluding right of use assets) totalled MEUR  10.1, including investments in the facility expansions in the Middle East and Vietnam.

SBO maintained its excellent financial position in the first quarter of 2025. The company’s cash and cash equivalents increased further to MEUR  323.0 as of 31 March 2025 (31 December 2024: MEUR  314.7), almost entirely driven by the free cash flow. Equity stood at MEUR  484.6 as of 31 March 2025 (31 December 2024: MEUR  492.7), slightly impacted by currency translation effects, resulting in an equity ratio of 49.8% (31 December 2024: 50.0%). Net debt was reduced to MEUR  47.1 (31 December 2024: MEUR  56.0), further improving the company’s gearing to 9.7% (31 December 2024: 11.4%).

Outlook

The market environment for SBO remains challenging heading into the second quarter of 2025. Low oil prices, global trade tensions and continued tariff uncertainty lead to reduced spending weighing on demand in several regions. In the Precision Technology division, the market uncertainty prolonged the “wait-and-see” approach of customers resulting in lower bookings. SBO is actively managing this environment by continuing to adjust its production capacity and cost base and by mitigating the risk of tariffs where applicable. The Energy Equipment division sees an increasingly cautious market sentiment in the US, given the low oil prices. SBO stays focused on navigating dynamic demand fluctuations by driving operational efficiency measures while continuing its expansion in international growth markets.

SBO is executing on its strategy. This includes diversification into other industrial sectors, market expansion across high-growth regions, continuous investment in technology leadership and a strong emphasis on operational excellence. The Annual General Meeting held in April approved the change of the company name to “SBO AG,” which is expected to become legally effective upon entry in the commercial register at the end of the second quarter. Together with the new corporate identity, this underlines SBO’s forward-looking orientation.

Despite short-term uncertainties, SBO remains confident thanks to the positive long-term outlook for the global energy sector. Growing demand, increasing attention to energy security, and ongoing energy transition driven by sustainability requirements continue to create new opportunities. SBO’s high cash position and financial stability provide a solid foundation for the execution of its growth strategy.

SBO’s key performance indicators at a glance