PWO expects a further decline in revenue at its German site in 2026, accompanied by cost increases that will weigh on the Group's EBIT

Oberkirch, January 16, 2026 – During the preparation of the 2026 budget, it is becoming increasingly clear that, due to the current framework conditions and customers' planning, revenue at our German production site is expected to decline further while costs increase. This development is negatively affecting the PWO Group's revenue and, more importantly, its earnings before interest and taxes (EBIT). Although our international subsidiaries may offset part of this decline through sales growth, the significantly increasing operating losses at the German site will still considerably reduce the overall Group's consolidated EBIT.

For 2026, we currently expect revenue of around EUR 500m and consolidated EBIT before currency effects in a range of EUR 13–17 million. Further key figures will be published as soon as the outlook for 2026 becomes more concrete.

For 2025, we continue to expect EBIT before currency effects in the range of EUR 23‑28 million (with the upper half of the forecast range being very ambitious) and revenue of around EUR 510m.

For the 2026 financial year, the Executive Board's forecast reflects 2 opposite factors: possible revenue and EBIT growth at our international locations on one hand and an increasing deterioration of performance and profitability at the German production site on the other hand.

Call-off plans from key customers of the German production site indicate further declines in 2026. These customers report falling orders at their own German locations. Competitive pressures continue to shift production to countries with more favorable industrial conditions. Unfortunately, the "autumn of reforms" announced by the German Government has not materialized. The necessary course corrections by the governing coalition, which were intended to initiate economic change in Germany and strengthen our industry, are still not visible.

As a result, the German PWO site is expected to see a further decline in revenue in fiscal year 2026 which, as mentioned above, could only be partially offset by growth at our international subsidiaries, but is likely to have a significant negative impact on the Group's earnings before interest and taxes (EBIT) before currency effects in 2026.

To prevent a redundancy plan for economic reasons and in the hope of an improvement in the business environment in Germany, the German site has proposed activating the employment-protection clause foreseen in the collective agreement. If the works council and the union accept this proposal, a redundancy plan can be avoided in 2026.

EBIT before currency effects is not a key figure according to International Financial Reporting Standards (IFRS). Information on the derivation of this figure can be found on page 33 of the 2024 Annual Report. It is available on the PWO Group website at https://www.pwo-group.com/en/press-and-investors/mediacenter/reports-and-publications/.

PWO AG
The Executive Board

Contact:
Charlotte Frenzel
Corporate Communications & Investor Relations
T. +49 179 / 6904 237
M.: [email protected]

PWO AG
Industriestraße 8
77704 Oberkirch
pwo-group.com