EDAG Group achieves positive EBIT in the first quarter of 2026

EDAG Engineering Group AG:
EDAG Group achieves positive EBIT in the first quarter of 2026

• Revenue decline of 10.8 percent due to persistently challenging market environment
• Positive EBIT of EUR 1.9 million in the first quarter of 2026
• Positive Free Cash‑Flow of EUR 6.7 million
• Restructuring and efficiency measures as well as strategic diversification, particularly in the defence sector, contribute to business stabilization

Arbon, May 7, 2026 – EDAG Engineering Group AG, one of the world’s leading independent engineering service providers with experts in Mobility, Defence, Industry and Public Solutions, today published its results for the first quarter of 2026. During the first quarter, the EDAG Group continued to operate in a demanding market environment characterized by factors such as geopolitical uncertainty and subdued investment momentum.

Order intake in the period under review amounted to EUR 195.3 million (prior year: EUR 229.7 million), while the order backlog increased to EUR 366.1 million as of 31 March 2026, compared with EUR 336.2 million as of 31 December 2025. Against the backdrop of continued weak demand, particularly in the mobility industry, EDAG Group revenues declined by 10.8% year on year to EUR 171.8 million in the first quarter (Q1 2025: EUR 192.6 million).

Despite the decline in revenue, the EDAG Group was able to improve its operating performance. EBIT increased to EUR 1.9 million, compared to EUR 1.6 million in the prior year quarter. The EBIT margin improved to 1.1 percent (Q1 2025: 0.9 percent).

The Vehicle Engineering and Electric/Electronics segments achieved a significant increase in EBIT despite declining revenues. In contrast, the Production Solutions segment recorded lower revenue and earnings, primarily as a result of customer restraint regarding plant engineering projects.

Strategic diversification at EDAG Group was consistently advanced further in the first quarter of 2026. In particular, the Defence business developed noticeably positively, recording a significant year‑on‑year increase in revenues. As a result, this area continues to gain importance and contributes to stabilizing the business model in a volatile market environment.

As of March 31, 2026, the EDAG Group’s headcount decreased to 7,947 employees (March 31, 2025: 8,949). While the reduction in Germany continued, international delivery structures, particularly in India, were further expanded.

“The first quarter of 2026 continued to be characterized by a challenging market environment. This makes it even more important that, despite declining revenues, we were able to achieve a positive EBIT and further improve our margin. Our restructuring, efficiency and diversification measures are taking effect. This creates the foundation for a gradual stabilization over a financial year that is still expected to be challenging,” explained Holger Merz, CFO of EDAG Group.

“The recent quarterly performance underlines the progress we are making in the strategic development of EDAG. Alongside our core business, the Industry and Defence segments are gaining increasing importance. In the area of industrial offerings for mid‑sized companies, we are driving our customers’ digital transformation through metys¹ and our cooperation with Deutsche Telekom, delivering scalable, AI‑based solutions. In doing so, we are deliberately strengthening our diversification and opening up new growth potential,” added Harald Keller, CEO of EDAG Group.

For fiscal year 2026, the EDAG Group continues to expect a challenging market environment. Accordingly, the company anticipates revenue development within a corridor of around +/- 5 percent. At the same time, EDAG expects a return to positive adjusted EBIT of up to around 3 percent. Planned investments are expected to be in a range of around 2 to 3 percent.

¹ Proprietary industrial metaverse platform with an integrated AI‑factory approach. The platform connects engineering, production planning and operational systems within a seamless, data‑driven ecosystem. This creates transparency, robust decision‑making foundations and a significantly higher speed of execution.

About the EDAG Group

The EDAG Group is a globally leading, independent engineering service provider with experts in mobility, defense, industry, and public solutions. The company combines engineering excellence with the latest technological trends and provides comprehensive support to clients in the development of complex products, systems, and production solutions in an increasingly interconnected environment.

With an interdisciplinary team of some 8,000 experts, a global network of around 70 locations, and over 55 years of engineering experience, the EDAG Group pursues a unique 360-degree development approach that encompasses modern mobility solutions as well as industrial applications, safety-critical systems, and complex development and transformation projects for the public sector.

Across industries, the EDAG Group develops products, production facilities, and plants that holistically integrate and digitally connect all manufacturing-related processes. Innovative strategies, data-driven development approaches, and a powerful digital infrastructure form the foundation for forward-looking solutions — from highly automated industrial environments and resilient defense systems to sustainable concepts for public sector clients. The interdisciplinary approach and a strong partner network enable an optimal customer experience for an international client base comprising leading companies, institutions, and public sector clients.

The company has been listed on the stock exchange since 2015 and generated sales of € 714 million in 2025.

For more information, see the EDAG Group website: www.edag.com
 

Pressekontakte:

Investor Relations
Christian Schütze
Head of Investor Relations
Mobile:     +49 (0) 175- 8020 226
Email:        ir@edag-group.ag
www.ir.edag.com

Public Relations
Felix Schuster 
Head of Marketing & Communications
Mobile:   +49 (0) 173 - 7345473
Email:      communications@edag.com
www.edag.com

Predictive statements and forecasts

This communication contains predictive statements. These statements are based on current estimates and forecasts made by EDAG Group Management and the information currently available to its members. The predictive statements given here are not to be regarded as guarantees for future developments and results mentioned therein. The future performance and results will in fact depend on a number of factors; they involve various risks and uncertainties, and are based on assumptions which may prove to be incorrect. EDAG undertakes no obligation to update the predictive statements made in this communication.