Masterflex reports new record result for the first half of 2025 – full-year forecast confirmed

Masterflex SE (ISIN: DE0005492938) published its 2025 half-year report today and can look back on a successful first half of the year despite an economic environment negatively impacted by trade and geopolitical factors. With a slight increase in revenue, Masterflex was particularly successful in achieving new record earnings.

New record results – operating EBIT margin rises to 14.7%
Consolidated revenue for the first six months of the 2025 financial year was EUR 53.4 million, up 3.4% on the previous year's figure of EUR 51.6 million. The Group achieved a 5.3% increase in operating EBITDA to EUR 10.6 million (previous year: EUR 10.1 million). Operating earnings before interest and taxes (operating EBIT) grew by 4.7% to EUR 7.9 million (previous year: EUR 7.5 million). Overall, the Masterflex Group thus achieved an operating EBIT margin of 14.7% based on consolidated revenue, compared with 14.6% in the same period of the previous year and 13.0% in financial year 2024. Consolidated net income was slightly above the previous year's figure at EUR 4.9 million (previous year: EUR 4.8 million). Accordingly, consolidated earnings per share also increased from EUR 0.50 to EUR 0.51.

The robust development in the current year once again highlights the Masterflex Group's strong position in the market for innovative hose and connection systems. This was achieved despite heterogeneous dynamics in the individual customer industries. From a regional perspective, sales development in Asia was weak due to economic conditions, as well as geopolitical and trade policy circumstances. Revenue growth was primarily driven by individual European countries, as well as Brazil and the US.

The positive earnings performance is the result of several factors, including the increased contribution of high-margin products to revenue growth, greater efficiency in production, and continuous improvements in purchasing. These effects are reflected in a significant decline in the cost of materials ratio and a moderate increase in the personnel cost ratio, which is due to inflation, increased volume, and the expansion of the workforce at the new location in Morocco. The main positive factors at the consolidated net income level were the significant 22.8% decline in financing costs due to scheduled repayments of financial liabilities, a more favorable interest rate environment, and improved credit terms resulting from restructured group financing.

However, two special effects that were not included in the 2024 financial year had a counteracting effect. Currency losses from Asia due to the weak yuan amounted to EUR 0.4 million, and costs for setting up the Morocco site, which were consolidated for the first time, amounted to EUR 0.3 million. These effects had a negative impact of EUR 0.7 million in total. Adjusted for these factors, operating EBIT would have amounted to EUR 8.6 million.

“After adjusting for the impact of currency fluctuations and the Morocco site, our earnings would have grown by double digits – as would our margin. The fact that we were able to achieve a moderate increase in margins and record results demonstrates that our ongoing efficiency efforts and focus on higher-margin revenue are paying off,” comments Mark Becks, CFO of the Masterflex Group.

Solid financial situation
The Masterflex Group remains in a robust financial position. Compared to the 2024 balance sheet date, financial liabilities were reduced by EUR 1.1 million to EUR 19.4 million. Although cash and cash equivalents have fallen by around EUR 1.3 million compared to the 2024 year-end figure, they remain at a high level of EUR 10.3 million. This decrease is primarily due to the EUR 2.6 million dividend payment following the Annual General Meeting on 12 June 2025, which approved an 8% increase in the dividend to EUR 0.27 per share. Net debt remained virtually unchanged at EUR 9.1 million, with a ratio to EBITDA of 0.5, indicating a very solid level. The higher consolidated equity of EUR 64.9 million (31 December 2024: EUR 63.6 million) as a result of positive earnings development, as well as the consolidated equity ratio of 68.2% (31 December 2024: 67.7%), reflect the Masterflex Group's high and growing solidity.

Operational and strategic highlights in the first half of 2025
The Masterflex Group has also achieved several important milestones in the past six months. The Group began construction of a new plant in the MIDPARC free trade zone near Casablanca, Morocco. Starting in 2026, the plant will manufacture highly specialized hose systems for the aviation industry. These expanded production capacities will create the basis for potentially doubling revenue with customers in this industry segment.

In addition, the Group has further developed its product portfolio with innovative solutions such as the hygienic Master PUR DualFlow spiral hose, the digitally connected AMPIUS hose system, and biodegradable materials.

“We are particularly proud of the development of a hose solution made from biodegradable, cradle-to-cradle-compliant polymer. This enables us to create closed material cycles that eliminate environmental impact while providing sustainable solutions for our customers – customers for whom the transition to a circular economy will increasingly become a business necessity in the coming years due to stricter regulations and the responsible use of resources,” explains Dr. Andreas Bastin, CEO of the Masterflex Group.

Progress in implementing the HERO@ZERO future strategy has led to the signing of a significant development and framework agreement with an international industrial customer. This lighthouse project marks an entry into new material and assembly technologies and specifically expands the value chain in the LIFE and TECH markets. Masterflex expects it to generate an additional EUR 5 million in annual recurring revenue from 2027 onwards, increasing to EUR 10 million at full capacity.

“We have returned to our growth trajectory this year and set the course for sustainable growth with HERO@ZERO. Our order intake and backlog were stable in the first half of 2025. We have made decisive progress in product development as part of our HERO@ZERO future strategy. We are expanding internationally and building capacity to support the growth of our aviation business. Despite these efforts, we are on track to achieve record results in the 2025 financial year. We are on track to achieve our short- and medium-term goals,” said Dr. Andreas Bastin.

Outlook 2025 confirmed
Despite the economic conditions, order intake remained stable in the first half of 2025. The order backlog as of 30 June 2025 was EUR 20.1 million, compared with EUR 19.8 million at the end of 2024 and EUR 20.3 million at the end of the first quarter of 2025. Building on the positive development in the first half of 2025, the Management Board is confident about the second half of the year and the coming years. The development in the 2025 financial year to date is in line with projections, enabling the Management Board to confirm the outlook communicated in the 2024 Annual Report. For the financial year 2025, the Group continues to target revenues in the range of EUR 100 million to EUR 105 million and EBIT in the range of EUR 12 million to EUR 15 million.

Key figures

* unaudited

The half-year report as of 30 June 2025 is available online at https://www.masterflexgroup.com/investor-relations/financial-reports-of-masterflex-se/ 

Conference Call/Webcast

A conference call/webcast will be held for press representatives, analysts and institutional investors on 06 August 2025, 10:00 am (CEST). The current investor presentation of the business figures for the first half of 2025 will be published on www.masterflexgroup.com.

To participate, please register here: Masterflex SE – Earnings Call HY 2025