InTiCa Systems Reports Continued Financial Challenges in 9M 2025, Revises Full-Year Guidance

InTiCa Systems SE reported continued financial challenges in its interim report for the first nine months of 2025, with group sales declining 8.7% year-on-year to EUR 50.6 million compared to EUR 55.4 million in the same period last year. The company's EBIT worsened significantly to negative EUR 2.1 million from negative EUR 0.4 million in the first nine months of 2024, reflecting persistent market difficulties that have forced management to revise its full-year guidance downward.

The company's performance reveals a stark divergence between its two main business segments. The Mobility segment showed some resilience with sales increasing 5.3% to EUR 46.0 million, while the Industry & Infrastructure segment experienced a dramatic 61.0% decline to just EUR 4.6 million. This segmental imbalance underscores the broader challenges facing industrial electronics manufacturers amid uncertain economic conditions and shifting market demands.

Despite the negative earnings performance, operating cash flow remained positive at EUR 3.9 million, though below the prior year's EUR 4.7 million, indicating effective working capital management amid difficult circumstances. The equity ratio declined slightly to 27.9% from 29.8% at the end of 2024 but remains at what the company describes as a solid level. The complete interim report for 9M 2025 is available for download from the Investor Relations section of InTiCa Systems' website at https://www.intica-systems.com.

CEO Dr. Gregor Wasle acknowledged the challenging environment while highlighting some positive developments. Despite the difficult conditions, sales actually rose slightly year-on-year in the third quarter alone, and the company has secured several long-term follow-on orders. However, he noted that the sales shortfall continues to impact the earnings situation significantly, requiring ongoing transformation efforts.

The company's order situation remains concerning, with orders on hand standing at EUR 74.2 million as of September 30, 2025, substantially below the prior-year level of EUR 86.0 million. Approximately 93% of these orders are concentrated in the Mobility segment, highlighting the company's dependence on automotive and transportation markets. Management anticipates that order offtake will remain subdued in the fourth quarter, contributing to the decision to revise guidance.

On November 20, 2025, the Board of Directors revised its financial guidance for the current year, reflecting weaker-than-expected business performance and persistently negative market conditions. The company now expects group sales to be at the lower end of the previously announced EUR 66.0 million to EUR 72.0 million range. More significantly, EBIT guidance was substantially downgraded from the lower end of the minus EUR 0.5 million to EUR 1.5 million range to between minus EUR 1.5 million and minus EUR 2.5 million.

To address these challenges, InTiCa Systems is pursuing multiple strategic initiatives. The company appointed Bernd Reichle as the new CFO in early November to strengthen financial management and support ongoing transformation efforts. The transformation process launched in 2024 includes cost savings measures, productivity enhancements, supplier structure diversification, and strategic expansion of the product portfolio. The company is also negotiating contract extensions of up to ten years for major product groups and benefiting from the local-to-local trend, particularly with US companies utilizing InTiCa's Mexican operations.

Looking toward future growth, the company reports initial success in expanding into new business areas, including development contracts for stationary power generating facilities for data centers and electric drives for maritime applications. However, these initiatives remain in early stages and are not expected to contribute significantly to sales in the current year. The company emphasizes that its current multi-year planning is fully financed, providing some stability during this transitional period.