| FY25A marked a year of profound reorganization for SolidWorld, characterized by the launch of a broad review of the corporate perimeter aimed at reducing administrative duplication and easing structural fixed costs, as well as reshaping the revenue generation model. The direction identified by the Group is that of an organizational model based on specialized Business Units, coordinated by an operating holding responsible for strategic direction, financial control, technological development and commercial support. Within this framework falls the integration of Solid Innovation into the Parent Company in December to centralize software and AI capabilities, the reorganization of real estate management through Solid Energy Real Estate, the unification of the biomedical division through the integration of Bio3DModel and Bio3DPrinting in January 2026, and, more recently, the acquisition of 100.0% of Miralis, aimed at strengthening the Group’s presence in PLM and industrial digitalization activities. At year-end, SolidWorld reported sales revenues of € 57.53 million, substantially stable compared to € 57.85 million in 2024, confirming a core business that maintains stable volumes. Production value amounted to € 63.17 million, broadly in line with our estimates of € 63.50 million and down compared to € 66.21 million in 2024, which benefited from a € 5.30 million extraordinary item related to the development of the Electrospider project. Among other revenues, we highlight higher capitalized internal costs, which increased to € 3.73 million from € 1.43 million in 2024. 2025 also marked a significant acceleration in the evolution of the Group’s software offering, with the launch of AI-Centric CAD, integrating Artificial Intelligence into design processes. This marks a shift from a traditional CAD approach, where users manually design each feature (cubes, splines, etc.), to a conversational, assisted design model that allows designers to interact more directly with the software, supported by specialized virtual assistants across different stages of technical and creative work: Aura (information search), Leo (design and creative support), and Mary (scientific research, e.g. complex equations and high-precision technical data). This evolution was accompanied by a transformation of the underlying technological infrastructure. During the year, the software was progressively migrated to a cloud architecture, eliminating the need for customers to rely on dedicated hardware. The process continued in early 2026 with the release of SOLIDWORKS 2026, introducing major AI-based functional enhancements to automate and optimize industrial design processes, and the new version Integr@ 2026, the proprietary software for integrating technical data and industrial processes within the digital factory. The revenue profile remains highly concentrated in the Industrial pillar, which accounted for 99.0% of consolidated revenues in 2025, in line with 2024. Within this pillar: The Software line generated € 39.40 million, accounting for 69.0% of the division total, up 1.2% compared to € 39.00 million in FY24A. Within the line, maintenance revenues amounted to € 20.30 million, down 2.4% from € 20.80 million in 2024, while license sales declined to € 14.80 million from € 15.40 million in the previous year. Conversely, rental licenses (SaaS) increased to € 3.00 million from € 1.20 million in FY24A, marking a +155.0% growth. The transition from one-off license sales to software rental has inevitably compressed short-term revenue recognition and margins, but is improving business quality by making revenues more recurring, predictable and scalable over the medium to long term. The Hardware segment recorded revenues of € 15.60 million, compared to € 16.30 million in 2024, with a 27.3% share of industrial revenues versus 28.3% in the previous year. This trend was mainly driven by a slowdown in capital expenditure decisions by manufacturing companies, which throughout much of 2025 awaited greater clarity on incentives related to the Transition 5.0 framework. Additive Manufacturing reached € 1.90 million, up 28.5% compared to € 1.50 million in 2024, with a 3.5% share of industrial revenues (vs 2.7% previously). This confirms the increasing importance of this activity within the Group’s industrial profile, also supported by the consolidation of Due Pi Greco, a company specialized in product design, engineering, additive manufacturing and 3D printing of high-performance industrial components for advanced applications. The progressive integration of this company has strengthened SolidWorld’s presence in the defense and aerospace sectors, where demand for advanced design, additive manufacturing and specialized components is supported by structurally favorable dynamics, including the European defense spending plan involving hundreds of billions at the continental level. In this context, during 2025 Due Pi Greco developed projects in automotive simulators and drone systems, progressively consolidating its role in high-tech segments; a path that received its first tangible industrial recognition at the beginning of 2026, with its inclusion in Leonardo’s supplier register, further strengthening its position in a market characterized by high entry barriers and growing demand for advanced digital solutions. Investments in the biomedical segment also continued throughout 2025, confirming it as a long-term development pillar for the Group. In this area, progress was made in the industrial and scientific validation of Electrospider, the 3D bioprinting platform developed for regenerative medicine applications, with early signs of commercial opening in international markets. At the same time, application development activities continued, culminating in the creation of a biomimetic tracheal patch capable of replicating the structure of human tissue, while Bio3DModel obtained ISO 13485 certification, a key milestone in strengthening the Group’s position in the medical sector. From a profitability standpoint, EBITDA amounted to € 2.73 million, compared to € 6.46 million in FY24A, with an EBITDA margin of 4.3%, down from 9.8% in the previous year. The decline reflects the combined effect of three main factors: increased absorption linked to investments in the biomedical and defense segments, the initial impact of the transition to the SaaS model, which defers revenue recognition, and costs incurred for corporate reorganization and industrial structure consolidation. On an adjusted basis, EBITDA stood at € 2.33 million, with a margin of 3.7%, after extraordinary items including € 0.80 million in income and € 0.39 million in charges. EBIT, after depreciation, amortization and provisions totaling approximately € 5.12 million, was negative at € -2.39 million, compared to € 2.17 million in FY24A, while Net Income amounted to € -2.79 million compared to € -1.83 million in the previous year. Net Financial Position stood at € 15.57 million of debt as of December 31, 2025, compared to € 14.59 million as of December 31, 2024. While increasing versus year-end, the figure shows an improvement compared to € 16.64 million recorded at June 30, 2025. However, a note of caution remains on the accounting side: in the report on the 2025 statutory and consolidated financial statements, RSM declared its inability to express an opinion due to the lack of sufficient audit evidence on certain materially relevant items. In particular, the main issues concern the recoverability of equity investments and non-current receivables from Group companies, based on 2026–2028 plans deemed not adequately supported and inconsistent with historical performance and negative actual cash flows; the verification of certain intangible assets, including patents, capitalized costs and goodwill; the lack of adequate support for the recoverability of deferred tax assets; the valuation of certain receivables from related parties, particularly Bio3DPrinting; as well as additional accounting issues related to the treatment of a pro-solvendo acquired DTA tax credit. These are accompanied, for the statutory accounts, by remarks on the investment in Immobiliare Costa Alta and, for the consolidated accounts, issues related to the failure to consolidate Tecnologia & Design economically up to the date of loss of control and to the valuation of certain tangible assets linked to Immobiliare Costa Alta. In light of these elements, despite a clear industrial and organizational progress achieved in 2025, we consider it appropriate to temporarily suspend our estimates and the equity value assessment of the Company. Pending greater visibility on the full reliability of the accounting framework and on the potential financial impacts of the auditor’s remarks, we place the target price and recommendation Under Review. |
