SLR Group GmbH, a leading supplier of high-quality ductile iron components, has reported its final audited results for fiscal year 25/26, revealing a significant increase in both sales volume and earnings. The company generated net sales of EUR 213.3 million, a 10% rise from EUR 194.0 million in the previous year. Total ductile iron components sold climbed to 107 kilotons, up from 95 kilotons in FY 24/25. Adjusted EBITDA rose slightly to EUR 17.8 million, a 3% increase from EUR 17.3 million, while the adjusted EBITDA margin reached 8.4%, compared to 9.0% a year earlier. Unadjusted EBITDA also improved to EUR 15.9 million from EUR 15.6 million.
The results matter because they demonstrate SLR Group's ability to grow volumes and revenue in a challenging market environment, while also highlighting pressure on profitability. The slight margin decline indicates that while demand for ductile iron components remains strong, operational efficiencies need improvement. This is particularly important for the company's bondholders and investors, as SLR Group has a EUR 75 million Nordic bond listed on the Frankfurt Stock Exchange and Nasdaq Stockholm. The final audited annual report is now available on the company's website at slr-gruppe.de/en/investor-relations.
Looking ahead, SLR Group has issued an optimistic forecast for fiscal year 26/27. The company expects total production and tons sold to range from 115 to 120 kilotons, with net sales projected between EUR 235 million and EUR 245 million. Adjusted EBITDA is forecasted to reach EUR 20 million to EUR 22 million. This guidance assumes that production volume at the Elsterheide site will increase by at least 15% compared to the previous year. The focus on Elsterheide is central to the company's strategy to improve margins as volumes rise. CFO Gunnar Halden commented, “Our focus in the new fiscal year is clearly on the Elsterheide site. With targeted measures to optimize our production processes, we aim to increase operational efficiency there and adapt even better to the shifting product mix. Elsterheide will thus become a key driver in improving our margin as volumes rise.”
CEO Jörg Rumikewitz added context on the market outlook: “The start to the new fiscal year was still subdued. The measures we have initiated to optimize production processes are taking effect step by step - in line with our planning, we expect a significantly stronger second half of the fiscal year. Despite a persistently challenging agricultural market, and with construction expected to stabilize at the same time, we remain confident about the new fiscal year. We aim to consistently increase our output and further expand our business with key customers.” The agricultural market has been a headwind for SLR Group, as its ductile iron components are used primarily in large off-highway agricultural, infrastructure, and construction equipment. A stabilization in construction, combined with efficiency gains, could provide a dual boost to earnings.
The implications of these results and forecasts extend beyond SLR Group. As a key supplier to market-leading OEMs and Tier 1 suppliers in Europe and North America, the company's performance is a bellwether for the industrial and agricultural machinery sectors. The planned 15% production increase at Elsterheide signals confidence in recovering demand. For investors, the forecast of higher adjusted EBITDA suggests that margin improvement initiatives are expected to yield tangible results. The full release is available via www.newmediawire.com.
