Research, Breaking News 26 Jun 2025
BREAKING NEWS

On June 24, 2025, Marzocchi Pompe SpA, an Italian company specialized in the design and production of high-performance gear pumps and motors for industrial, mobile, and automotive applications, announced the commissioning of two new assembly and testing lines dedicated to the Elika 1P and Elika 2 product families at its Zola Predosa (BO) facility. The new production islands, designed according to lean manufacturing principles and equipped with automated component storage systems, are already configured to accommodate in the future the production of the Elika 1 range, which is currently under development. Furthermore, all new modular Elika pumps will be assembled at a dedicated workstation located within the same facility. This transfer of operations will free up resources and capacity at the historic Casalecchio di Reno plant, which will continue to host the production of the Elika 3 and Elika 4 families—characterized by smaller volumes—as well as support the production of traditional product lines. These will indirectly benefit from an improved overall balance of production capacity. This production upgrade is part of Marzocchi Pompe’s broader growth strategy, focused on technological development and process efficiency in order to strengthen the company’s competitiveness, including through the patent protection of the Elika range. It is worth noting that, despite a 2024 marked by declining revenues and an EBITDA affected by volume contraction and rising costs, the company has continued to invest, allocating approximately 8.0% of its revenues to strategic initiatives. In a market environment that remains uncertain, the rationalization of production capacity is a key step in supporting a competitive recovery ahead of an anticipated market rebound. Based on the information provided in the press release, we confirm our recommendation: Target price € 5.00, Rating BUY and Risk Medium. |