In 1H26A, EdgeLab recorded a Value of Production of €0.40m, compared with €0.80m in 1H25A, reflecting the timing mismatch between progress on orders and invoicing. This resulted in no sales revenue during the half-year, compared with €0.03m in 1H25A, together with a lower contribution from other components. In particular, the positive change in work in progress amounted to €0.35m, compared with €0.50m in 1H25A, mainly reflecting the continuation of procurement and assembly activities for U-Tracker L and design activities relating to the NAVARM-LDAUV programme, measured on the basis of costs incurred, without recognising commercial margins. Other revenue and income fell from €0.27m to €0.04m, mainly due to the lower contribution of R&D grants, down from €0.27m to €0.01m owing to the different timing of funded projects, while the remaining €0.03m mainly comprised the tax credit associated with the listing. Overall, the half-year was characterised by continued investments in the industrialisation of the U-Tracker range, small-series production of proprietary platforms and the strengthening of the international commercial presence, in line with the intended use of the funds raised at the time of listing.
EBITDA stood at €-0.65m, versus €-0.13m in 1H25A, with an EBITDA margin on Value of Production of -164.9%, compared with -16.6% in the corresponding period. The result mainly reflects the contraction in Value of Production against a substantially stable operating structure maintained to support industrial and commercial activities. Total operating costs increased from €0.93m to €1.05m, mainly driven by higher raw material costs, net of changes in the related inventories, which rose from €0.10m to €0.19m in connection with increased component procurement for small-series production of U-Tracker L and higher purchase prices. Service costs remained almost unchanged at €0.45m, compared with €0.44m, supporting specialist processes, technical activities and international business development. Personnel costs were similarly stable at €0.39m, compared with €0.38m, confirming the decision to retain the engineering expertise and production capacity required to support future growth.
EBIT, after depreciation, amortisation and impairment of €0.07m, mainly related to intangible assets, amounted to €-0.73m, compared with €-0.20m in the corresponding period. Net Income also stood at €-0.73m, compared with €-0.20m in 1H25A, against a substantially neutral financial result and no income taxes.
On the balance sheet, NFP remained cash-positive at €1.61m, compared with €2.20m as at 31 December 2025. With a structure substantially free of bank debt, the decline in liquidity mainly reflects working-capital needs related to maintaining the production structure and procurement required to advance orders. In particular, inventories rose from €0.48m at year-end 2025 to €0.93m, as a result of continued work on U-Tracker L and the accumulation of materials and components intended for small-series production. The consequent increase in trade working capital, from €0.73m to €1.02m, was partially offset by a decrease in trade receivables from €0.35m to €0.20m thanks to collections during the period, and by a modest rise in trade payables from €0.10m to €0.12m. Overall net working capital, however, remained broadly stable at €0.72m, compared with €0.78m at year-end 2025, primarily benefiting from a reduction in other current assets from €0.47m to €0.14m, mainly due to lower tax receivables, and a slight increase in other current liabilities. Net fixed assets declined from €0.58m to €0.53m, largely due to amortisation of intangible assets.
The market environment continues to offer favourable prospects, supported by increased defence spending, the growing need to protect strategic subsea infrastructure and the expansion of civilian applications for autonomous robotics. According to Markets & Markets, the global AUV market is expected to grow from $1,788.00m in 2023 to $4,916.00m by 2028, representing a CAGR of 22.4%. Against this backdrop, EdgeLab aims to leverage the modularity of its platforms, its technological flexibility and a competitive performance-to-price ratio compared with major international operators, focusing in particular on markets with growing demand and a more limited presence of established domestic manufacturers.
From an operational standpoint, during the half-year EdgeLab continued work on the EUT (Expendable Underwater Target) and MTE (Mobile Target Effector) programmes, developed in cooperation with Bharat Forge Limited and Mazagon Dock Shipbuilders Limited and intended for the Indian Navy. Both programmes are substantially complete from a technical standpoint, while the final trials required by the customer (Field Evaluation Trial) remain to be carried out for both EUT and MTE. Their timing depends on the scheduling by the Indian Navy. Completion of these trials would allow the orders to be finalised and the remaining contractual instalments to be collected, while also creating opportunities for subsequent serial production of the devices in India. In parallel, industrialisation of the U-Tracker range continued, particularly for the U-Tracker Pro and U-Tracker L platforms, which feature greater added value and account for some of the main commercial opportunities.
R&D activities also continued during the half-year, helping expand the capabilities of the proprietary platforms and their areas of application in civilian and defence markets. AUTOMA, funded under Italy’s National Recovery and Resilience Plan (PNRR), was completed in January and enabled the development of automatic marine-species recognition and classification systems through the integration of autonomous vehicles, advanced sensors and artificial-intelligence algorithms. Within the MTCOM project, testing at the Port of La Spezia was successfully completed, validating environmental and operational monitoring systems based on autonomous units coordinated through a private 5G network. Work also continued on THETIDA, which focuses on protecting underwater cultural heritage, with surveys carried out in June using U-Tracker IV on the wreck of a Roman-era vessel near Gallinara Island. In July, a mission to Portugal successfully tested a hyperspectral camera integrated into the platform to monitor the state of preservation of a B-24 Liberator aircraft wreck. Work also continued on SHARK, a project funded by the National Underwater Domain Hub (Polo Nazionale della Subacquea), focused on developing advanced underwater navigation technologies.
On the commercial front, EdgeLab intensified its internationalisation initiatives, focusing particularly on European defence and maritime security markets. In February, the Company signed a strategic agreement with Turrim Sp. z o.o., appointed exclusive sales representative for Poland, a market characterised by rising investment in protecting Baltic Sea infrastructure. The agreement was followed in May by a trade mission to Warsaw, Gdynia and Gdańsk, during which discussions were initiated with industrial operators and institutions regarding potential collaborations in autonomous systems and advanced navigation technologies, including in the field of training. In June, EdgeLab also participated in the OPEX exercise in Mangalia, on the Black Sea, demonstrating the capabilities of U-Tracker IV to representatives of the Romanian Navy. Trials confirmed the vehicle’s manoeuvrability and versatility under realistic operating conditions, including through a fibre-optic connection configuration for direct transmission of sensor data, receiving positive feedback and fostering new commercial opportunities. These initiatives form part of the strengthening of the international representation network, already active in India, Poland, Bangladesh and Chile, with further discussions underway in Europe and Latin America.
Following the close of the half-year, EdgeLab recorded further contractual progress. In July, the Company signed a €0.09m contract with a leading Italian shipbuilding and defence group for the preliminary design of LARS (Launch and Recovery System) systems, intended for launching and recovering autonomous underwater vehicles, with completion expected in 2H26. The approval process for the study and design activities relating to the NAVARM-LDAUV programme was also finalised, with €0.11m to be recognised as revenue in the second half. In parallel, the Company continued strengthening its organisational and governance arrangements, updating its Internal Dealing and inside-information management procedures and evaluating strategic opportunities for growth, including through external acquisitions.
Overall, the 1H26A results reflect a phase of industrial consolidation and commercial development, during which EdgeLab continued to invest in proprietary platforms and international expansion, while the associated economic benefits remain dependent on the timing of order completion and invoicing. In 2H26, the Company will continue executing orders, with an expected contribution from recognising NAVARM-LDAUV and LARS activities and from the possible conclusion of ongoing commercial negotiations. Looking ahead to 2027, increased availability of the U-Tracker Pro and U-Tracker L platforms and intensified demonstration activities, including participation in international events such as Ocean Business and SEAFUTURE, should help monetise investments made over recent years. The progressive completion of the industrialisation process and the consolidation of the sales network therefore represent the Company’s main development priorities, with the aim of strengthening revenue generation and improving profitability over the medium term. Despite operational progress, the uncertainties highlighted in the previous update remain, linked to the geopolitical environment and still-limited visibility on the timing of final trials for certain strategic orders. Consistent with our previous research, we therefore maintain the equity value assessment, target price and risk profile Under Review. |
