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CESA Group reported its fourth-quarter and full-year 2025 financial results, highlighting a modest increase in revenues despite facing challenges in some segments. The company saw a 4.6% year-over-year revenue growth for the fiscal year, reaching 3.36 billion euros, while its EBITDA rose slightly by 0.5% to 240.7 million euros. However, the adjusted net results declined by 9.9% to 96 million euros. The company’s stock, SESA, experienced a significant drop of 15.21%, closing at 69.4 euros, amid investor concerns over future earnings forecasts. According to InvestingPro data, the company currently trades at a low revenue valuation multiple, suggesting potential undervaluation despite recent challenges. InvestingPro analysis indicates the company operates with a moderate level of debt, maintaining a debt-to-equity ratio of just 0.04.
Key Takeaways
- CESA Group’s FY 2025 revenues increased by 4.6% year-over-year.
- EBITDA growth was modest at 0.5%, while adjusted net results fell by 9.9%.
- The stock price of SESA dropped by 15.21% following the earnings release.
- Significant growth was noted in the Digital Green and Business Services segments.
Company Performance
CESA Group’s overall performance reflected both strengths and challenges. The company reported a 3.1% increase in fourth-quarter revenues and an 8.2% rise in EBITDA for the same period. However, its net cash position declined to 158 million euros from 211 million euros. The ICT Value Added Solution segment saw a decrease, while Digital Green and Business Services experienced significant growth, indicating a shift in market demands. InvestingPro analysis reveals the company maintains a strong current ratio of 15.61, suggesting robust short-term liquidity despite the cash position decline. For deeper insights into CESA Group’s financial health and detailed metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Financial Highlights
- Revenue: 3.36 billion euros, up 4.6% year-over-year.
- EBITDA: 240.7 million euros, up 0.5% year-over-year.
- Adjusted Net Results: 96 million euros, down 9.9% year-over-year.
- Net Cash Position: 158 million euros, down from 211 million euros.
Market Reaction
The market reacted negatively to CESA Group’s earnings release, with the stock price of SESA falling by 15.21% to 69.4 euros. This decline reflects investor concerns over the company’s future earnings potential, especially given the revised guidance projecting negative EPS for upcoming quarters.
Outlook & Guidance
Looking ahead, CESA Group has set ambitious targets for FY 2026-2027, aiming for revenue growth of 5-7.5% and EBITDA growth of 5-10%. The company plans to focus on AI and automation, with projected revenues between 3.7 billion and 3.9 billion euros and EBITDA between 265 million and 291 million euros. Operating cash flow is expected to be around 150 million euros, with annual investments of approximately 80 million euros. InvestingPro subscribers can access additional insights, including 6 more exclusive ProTips and detailed valuation metrics, to better evaluate these growth targets against industry benchmarks. The platform’s Fair Value model suggests the stock may be currently undervalued, presenting a potential opportunity for investors focused on long-term growth prospects.
Executive Commentary
Alessandro Fabroni, Group CEO, emphasized the company’s strategic focus on digital transformation and sustainable growth. "We are entering a new phase of evolution, more focused, supported by a rationalized structure," he stated. Fabroni also highlighted the importance of AI and automation in the company’s future plans, saying, "We will put AI and automation everywhere."
Risks and Challenges
- The declining net cash position may impact future investments.
- Challenges in software system integration margins could affect profitability.
- Market saturation in certain segments may limit growth opportunities.
- Macroeconomic pressures, such as inflation, could impact costs and margins.
Q&A
During the earnings call, analysts focused on CESA Group’s M&A strategy, which is shifting to a more selective approach. Questions also addressed the company’s performance in the business services and digital green sectors, as well as challenges in software system integration margins. The management provided insights into their plans for cybersecurity and AI integration to drive future growth.
Full transcript - SESA (SES) Q4 2025:
Conference Operator, KARSCO: Good afternoon. This is the KARSCO conference operator. Welcome, and thank you for joining the Full Year twenty twenty five Consolidated Results Conference Call of Teva. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions.
At this time, I would like to turn the conference over to Mr. Iacopoulosquetti, Stakeholder Relations and Head of Sustainability of CESA. Please go ahead, sir.
Alessandro Fabroni, Group CEO, CESA Group: Good afternoon, and thank you for attending the CESA Group presentation. Representing the group today are Alessandro Fabroni, Group CEO Katarina Gori, Investor Relations and Corporate Finance M and A Manager and myself, Secolder Relations and Head of Sustainability. This morning, the Board of Directors approved the consolidated financial results as of 04/30/2025, and the new industrial plan for the fiscal year 2026 and 2027. The corporate presentation is available on the Setta website and will serve as a reference throughout today’s conference call. Alessandro will begin by providing an overview of our key strategic achievements.
Good afternoon, and thank you all for joining today’s call. Today, we released the group’s full year results as of April 3025, CESA closed a year of significant transformation and considerable investments, reaffirming our ability to grow even in the challenging market conditions and confirming our role as a strategic partner for the digital transformation, consulting, and vertical application for businesses and organizations. Considering the pro form a consolidation of Green Sun in the first half, total revenues for euro 83,000,000, The f y twenty five closed with revenues equal to euro 3,360,000,000.00, up 4.6% year on year, and an EBITDA of euro 240,700,000.0, increasing by o point 5% compared to the previous year. In the q four only, revenues increased by 3.1% and EBITDA by 8.2%, confirming the positive trend of serve in the second half of the year, which saw revenue growth by 7.6% and an EBITDA increase of 5.2%, reversing the moderate 2% decline experienced in the first half and in October 2024. The FY twenty five performance consolidates the group’s solid growth established throughout the 02/2020, 2024 period, during which revenues increased from euro 1,780,000,000.00 to euro 3,200,000,000.00, and EBITDA moved from euro 94 and a half million to euro 239,500,000.0.
Over the year, we increased investments in key areas driving digital transformation, such as AI automation, digital platform, and strengthened our capabilities, closing the fiscal year with 6,500 people, up 15% year on year. Growth was mainly concentrated in the high potential sectors as business services, green, and software system integration with approximately 66% driven by m and a complete in f y twenty five. By segment, revenues performance was as follows. ICT value added solution reported euro for 2,075,000,000.000, down 3.4% year on year with a slight recovery in the second half, up o point 3%, and a 6.4% decline in q four, reflecting ongoing challenging market conditions and entirely organic performance. Digital Green, VAS, recorded a great 344,000,000, up 43% year on year, 110% in the q four only, driven by the consolidation of Green Sun from the beginning of the fiscal year and by the return to a double digit organic growth in q four only as planned.
Software and system integration sector achieved euro 876,000,000, growing 6.4%, driven by 3.5% growth in the second half and a positive 7.2% growth in q four only despite unfavorable market conditions with approximately 50% of the growth attributable to external leverage. Business services achieved euro 154,000,000, up around 35% year on year with roughly 55% organic growth boosted by the expansion in digital application and platforms dedicated to the financial services industry. Consolidated EBITDA reached euro 240,700,000.0, up o point 5% year on year compared to euro 239 and a half million the previous year, supported by a solid acceleration in the second half, growing 5.2%, and in particular, in the q four only, growing by 8.2% year on year and mainly driven by the strong performance of the digital green and business services sector. In q four twenty five alone, EBITDA stood at 64,000,000, up 8.2% with a margin of 7.6%, reflecting the solid organic recovery of Digital Green and the continued acceleration of business services. Let me now work you through the EBITDA performance by business sector, highlighting key dynamics and drivers across the group.
ICT VAS reported an EBITDA of euro 90,000,000 in f y twenty five, down 5.8% year on year and three and a half percent in the second half. Q four only show a strong recovery with a 13.9% increase year on year. The EBITDA margins equals 4.3% from the full year compared to 4.4 in the previous year by reaching a positive 4.6% in the q four already. Digital Green DAF delivered an EBITDA of euro 24,500,000.0, up 13.6% in f y by 80% in the second half and increasing by 186% in the q four only. The f y margin stood at 7.1% compared to September in f y twenty four, rising to 8.1% in q four.
This performance reflects the full year consolidation of Green Sun pro form a in the first half of report in the second half with organic growth of 7% in q four only. System Integration and Software reported an EBITDA of euro 95,000,000, down 5% year on year, 7% in the second half, and 6.8% in q four only with an EBITDA margin of 10.8% compared to around 12% year on year, reflecting the continued investments in skills, technologies, and reengineering process with margin stabilization effective from f y twenty six. Finally, business services recorded an EBITDA of euro 27,300,000.0, up 51% year on year, 60% in the second half, 35% in q four, with an EBITDA margin of 18% compared to 16% year on year, supported by revenue growth and customer expansion in digital platforms and vertical applications. The adjusted consolidated EBIT amounted to euro 185,000,000, declining 3.8% year on year with a recovery in the q four only, showing a positive increase by o point 5%. These results include amortization of tangible and intangible assets for euro 50,000,000, up 25% year on year, and provision for euro 5,100,000.0, down 21% year on year, driven by the high quality of accounts receivable supported by the without recourse factoring and securitization programs for a significant share of the business perimeter.
The adjusted group net results equaled euro 96,000,000, down 9.9%, with the second half contributing for euro 64,000,000 with a 1.9% decrease year on year. This performance reflects the combined effect of the stabilization of net financial expenses in the full year, increasing on full year basis to euro 40,000,000 compared to ’37, while at the same time showing a 10.2% improving in the q four only with significant improvement expected also in coming quarters. On the other hand, foreign losses for euro 1,400,000.0 in q four as a result of the sharp appreciation of euro US dollar rate in April 25 and the higher impact of minorities. The economic and financial results achieved confirm our solid financial position. As of April 3025, the group’s net cash position, excluding IFRS liabilities, stood at euro 158,000,000, down from euro 211,000,000 as of April 3024, reflecting significant investments for around euro 160,000,000 and dividend by debt distribution, totally approximately euro 30,000,000.
Operating cash flow in the FY ’25 was approximately equal to euro 120,000,000 supported by a solid operational performance and effective working capital management, credit risk mitigation tools, such as factoring and securitization within the EAS segment help maintain high credit quality, including the euro $233,000,000 of IFRS liabilities related to the share payments to minority shareholders and lease obligation under IFRS 16, the reported net financial position was negative for around 74,000,000 compared to positive of euro 2,700,000.0 as of 04/30/2024. Now I give the floor to Catalina to present the May resolution of the upcoming shareholders meeting on next August 27.
Katarina Gori, Investor Relations and Corporate Finance M&A Manager, CESA Group: Thank you, Alessandro. Based on these results, at the next shareholder meeting of August 27, we would propose to approve a dividend of one per share consistent with FY 2024. And in response to investors’ feedback, we are significantly increasing the share buyback program from €10,000,000 to €25,000,000 for the coming year, almost treating it to further enhance shareholder value and demonstrate our confidence in the group growth prospects. We believe that the increase in the buyback plan represents a valuable opportunity for our shareholders, considering both the weak performance of the stock market over the past twelve months and the upcoming twenty twenty six, twenty twenty seven Industrial Plan, which is mainly focused on an organic growth and cash generation. Jacopo will now take us through the ESG results for FY 2025.
Alessandro Fabroni, Group CEO, CESA Group: Good afternoon again and thank you, Katharina. In recent years, we have progressively improved our ESG performance, consolidating our strong commitment to value generation in a responsible way, in line with our good purpose to create long term sustainable value for our stakeholders, promoting innovation of companies and organizations and the well-being of people. Also in light of the new CSRD regulations and the new ESRS standard, our ESG policies are aligned within the national best practice with a strong focus on governance, environmental respect, human resources, welfare management, and economic development. In fiscal year twenty twenty five, we’re reporting again a strong improvement of our environmental performance. We decreased the waste per capita down 78% year on year.
We increased the share of green electricity purchase from third parties, about 95%, including self produced green energy, and we reduced the electricity consumption per capita, down 5% year on year. In terms of sustainability governance, we extended our quality and compliance group certifications, confirming at the same time our ESG ratings at Echobadis Gold Medal, MSCI BBB and carbon disclosure project with Abisko. In line with our ESG growth path, today, we also approved our sustainability plan for twenty twenty six, twenty twenty seven. Our strategic documents have defined priorities, targets, and specific actions to integrate sustainability in our business model, contributing at the same time to the creation of long term value for our stakeholders. The main energy targets of the plan are focused on increase of the share of the renewable energy with a target of 97 percent in fiscal year twenty twenty seven, decrease of Scope one and two emissions per capita and total emissions of revenues with an expected decrease of 5% in the next two years and to maintain at least stable the gender mix with a threshold equal to 30%.
Now I give the floor again to Alessandro. Today, our board of directors has also approved the group’s industrial plan for the fiscal years ending 04/30/2627. Building on the pro form a base of 2025, the plan was developed between April ’25 with the active involvement of all operating divisions and key people across the group by incorporating also some indications raised by our institutional shareholders. Our plan is focused on targeting strong organic growth, adopting a more selective m and a strategy by improving cash flow generation, supported by higher operating efficiency and market penetration driven by the progressed production of the so called digital enablers such as AI and automation, digital and vertical platforms. This approach will strengthen our position as a leading digital integrator and digital transformation partner of the business segment, focusing on cybersecurity, AI, automation, vertical application, and digital platforms.
Meanwhile, our business services sector will continue to expand its presence in the growing financial services market boosted by rising demand for vertical platforms and applications. Thanks to these initiatives, we expect around 5% revenue growth and 10% profitability increase over 2026 and 2027 full year driven by organic expansions across our group sectors, particularly digital green and business services, and the return to growth in ICT value added solution after a year moderate decline. Our strategy also includes the simplification and engineering of some group’s operations and the possible disinvestment of noncore assets to streamline the group and enhance the focus on our core business. I give the floor to Catalina for providing some more details about the main assumptions and targets of our industrial plan twenty twenty six, twenty twenty seven.
Katarina Gori, Investor Relations and Corporate Finance M&A Manager, CESA Group: As Alessandro mentioned, the industrial plan will primarily focus on organic growth and business transformation with the following main growth targets. Following our significant investments made over the past five year period, we will focus on group simplification and organic growth. We targeted M and A investments in digital enablers, pre engineering process and digital platform to boost our growth in foreign countries. A positive market outlook for digital industry with an expected average annual growth rate higher than 3% and the mid to high single digit growth forecast in the green photovoltaic market for corporate and organization driven by rising energy requirements. Revenues are expected to grow in the range of 5% to 7.5%, both in FY 2026 and 2027, targeting EUR €3,700,000,000 to €3,900,000,000 in FY 2027.
EBITDA is expected to grow between 510%, both in FY 2026 and 2027, targeting €265,000,000 to €291,000,000 in FY 2027, with an EBITDA margin increasing from 7.2% in FY 2025 to 7.5 in FY 2027. Group PFE adjusted is expected to increase in the range of 10% to 12.5% both in FY 2026 and 2027 targeting €116,000,000 to €121,000,000 in FY 2027. We also expect to benefit from lower financial charges from approximately 5,000,000 to €10,000,000 per year both in 2026 and 2027, driven by lower interest rates and cash flow generation. We expect a moderate growth in headcount reaching around 7,000 co workers in 2027. By segment, we expect to see annual revenue and profitability growth between 1015% in Business Services, high single digit growth in SSI and Digital Green DIS and a recovery with low single digit increase in ICT BIS.
We are targeting an annual operating cash flow of approximately €150,000,000 and plan to invest around the €80,000,000 per year mainly to support organic growth and the development of digital enablers such as AI, automation and digital platforms. The adoption of AI and automation technologies combined with the creation of internal competence centers would be a crucial strategic driver to transform our operation and increase market penetration. To give you a clearer picture of the opportunity, the Italian data and AI market is currently valued at €935,000,000 in 2024 and is projected to experience substantial growth reaching €1,250,000,000 in 2025, up 34% year on year and €1,700,000,000 in 2026, up 33% year on year. As a result of the action of our investor plan and our strong focus on organic growth, we plan to increase our payout ratio including the buyback program to 40% for FY 2026 and 2027, up from 30% in FY 2025. As part of this approach, we have proposed to raise our share buyback program to 25,000,000 compared to €10,000,000 last year as detailed in the resolution submitted to the shareholder meeting.
Now I’ll give the floor back to Alessandro for the closing remarks.
Alessandro Fabroni, Group CEO, CESA Group: So the FY ’twenty five has been a year of deep transformation and successful completion of the phase of significant investments for our group. Looking ahead, our 2026 and ’twenty seven plan sets a clear path toward renewed profitability, driven by targeted strategic actions, disciplined execution, a strong focus on growing operating efficiency. Our recent strategic investments, particularly in digital green and business services, are delivering good double digit growth, while our historical core businesses are expected to recover organic growth, both in revenues and profitability. The new m and a approach will be selective and value driven, targeting annual factor opportunities that will improve our capabilities, generate tangible synergies, and reinforce our leadership in key markets. At the same time, we are accelerating investments in AI and automation, digital enablers to achieve greater efficiency, scalability, and market penetration.
Our strategy would include following the group simplification, targeting these investments of noncore assets to streamline the organization and enhance focus on our core businesses. In summary, we are entering the new phase of evolution, more focused, supported by a rationalized structure and better positioned to deliver sustainable and profitable growth, thanks to strengthened execution capabilities and clear strategic vision. With the new industrial plan, we have laying the foundation for solid organic growth in 02/1926, 02/1927, targeting five to seven and a half percent annual growth in revenues, high single digit growth in operating profit, and double digit annual increase of net profit by reinforcing our market leadership and sustainable value generation. The positive trend of EBITDA in q four twenty five growing by 8.2%, driven particularly by business services and digital green with a good start of q one two thousand twenty six confirmed the achievability of our plan. Considering the economic and financial progressive improvement driven by our new industrial plan, we will decide to improve the payout for our shareholders from 30 to 45% by increasing in significant way our buyback plan.
Above all, in phase of a so great acceleration of digital evolution and sharp adoption of AI and automation, people will remain crucial at the core of our vision, sustainable growth and long term value creation. Thank you for your kind attention. Now we open the q and a session.
Conference Operator, KARSCO: Thank you. This is the Corcor conference operator. We will now begin the question and answer session. Star and one on the touch tone telephone. To remove yourself from the question queue, please press and two.
Please pick up the receiver when asking questions. Please go ahead.
Alessandro Fabroni, Group CEO, CESA Group: Good afternoon, and thanks for taking my questions. I have two questions, sir. The I mean, in in the in the in this quarter, it’s a a posted growing numbers compared to one year ago, but still reported numbers were a bit lower than previous indications. Can you help us in understanding what were the business areas performing slightly below expectations and what has driven the gap in the quarterly cash flow? This is the first.
The second question is forward looking. So what are the current market conditions? How was your performance in May and June so far? Are you on track with full year guidance? Thank you.
Good afternoon, Andre. Thank you for your call. So first of all, we perform under the expectation in the software system integration because we in particular, in terms of EBITDA, because we would have a good recovery in revenues. I mean, the revenues increased by around 7% in the q four only, but we continue to to work with a low EBITDA margin compared to the previous year. And so that is one area.
The other area in VAS IT, ICT, because we perform well in terms of EBITDA, but not so well in terms of revenues because we have a down by 5%. In comparison with previous quarter q three when we increased higher than 10%. So the combined effect generate penalties or a shortfall in comparison with the previous expectation. In any case, we performed really well in the other two sector. So green, because in the green as planned, we recover an organic growth, and also business services that continue to improve its marginality.
And so entering in the new fiscal year, we have a good performance in in green and good performance also in in the business services and expectation to perform growing in low single digit in IT, ICT, VAS, and to perform with a mid to high single digit growth revenue in system integration. So the plan that we discussed today, don’t plan any increase now in the EBITDA marginality, any significant increase in EBITDA marginality of software system integration. So just to maintain the level of marginality that we, at the end, performed in in the full year 02/2025. So positive outlook for q one. Thank you.
Thank you very much.
Conference Operator, KARSCO: As a reminder, if you wish to register for a question, please press and 1 on your telephone. The next question is from Alexandra Arsova of Equita. Please go ahead. Hi. Good afternoon.
Thank you for taking my questions. A question on my end on M and A strategy and also on past M and A. So how is going on the integration of past M and A, which was one of the, let’s say, main issues here you were trying to, let’s say, to improve over the past quarters? And then on the future, so what do you expect in terms of M and A strategy for the coming, let’s say, months and over the plan period? Thank you.
Alessandro Fabroni, Group CEO, CESA Group: Thank you, Alexandra. So it’s clear that the new industrial plan represents a new phase for our evolution because, first of all, for the first time, we are providing figures that don’t include the effect of the m and a. So we are considering just the m and a already announced as of today. And as a result, we reduced the amount of investment that we planned from 150. So this is the average on the previous five year period every year, to around 80,000,000.
So reason is, first of all, our great perimeter that we developed attached to the strategy of m and a in the last five year period. So now the plan is going to focus group operation on our four core businesses and to target organic growth, Thanks to the digital and average adoption, initial our organic growth, organic perimeter. And as for the integration of the previous m and a, thanks to the reengineering process that we are performing in particular in the era of software system integration, we will address that for sure growing operating efficiency that is not included in our forecast on the business plan, in particular in the first year. And so there’s an opportunity to take profit from this job that we are going to to make. So we started in in the previous ’3 February during the f y twenty five.
Conference Operator, KARSCO: Okay. Thank you. Very clear.
Alessandro Fabroni, Group CEO, CESA Group: Thank you.
Conference Operator, KARSCO: A reminder, if you wish to register for a question, please press star and one on your telephone. Any further questions, please press star and one on your telephone. Mr. Fabroni, there are no more questions. Excuse me, there’s one just one more question, a follow-up question from Andrea Randone of Intermonte.
Please go ahead.
Alessandro Fabroni, Group CEO, CESA Group: Yes. So I I see that that is time for another question. I I like to ask you about the business services and also the software system integration in in these two segments. Usually, you have a quite good visibility. So if you can comment on what are the main projects that you are you are, I mean, expecting for this year and so something that can support the guidance you have just provided more in, I mean, qualitative terms about the clients and sectors, products, or something like that?
Thank you. Thank you for the question. So first of all, in the business services, we are improving our perimeter of operation, We are adding new major customers, not only in banking area, but also in insurance one. And it is positive because there’s an opportunity to extend our digital platform adoption and so to continue to grow. So the expectation that we included in our group, that’s the plan, is to grow around 15% in revenues and EBITDA.
And so to maintain the 18% EBITDA margin, we developed a full set of digital and vertical applications for banking from treasury to wealth management up to the so called tech. So regulation application for compliance that is an area of rising low in in that phase of evolution. We are dealing with some of major Italian banks for improving our offering and to our penetration. And and so there are a a full visibility of the expectation and the trend for f y twenty six. In terms of software system integration, two, three main areas for us would be, first of all, cybersecurity because we develop a team that is operating across Europe with a great market penetration.
There’s a tremendous opportunity coming from the new framework regulation namely in Italy, n I s two. This way, the Italian language, with additional investment that will be necessary for any company in the organization to be compliant and, in particular, to be to be able to to be safe in front of potential cyber risk. Inside the cybersecurity business unit, we adopted the we already adopted the AI technology. And as a result of this adoption, we improve a lot the quality of the work life of our people, and, also, we increase a lot our operating efficiency through a project that we call Agida. That means to adopt detecting AI and automation capability inside our security operation center.
Other area of development, obviously, will consist of data science, AI, and automation. So the the mantra will be to to to put AI and automation everywhere. So in any of our delivery and any of our offering towards customers, in particular, not only inside the some of the most relevant vertical and digital platforms that in the software system integration we developed towards the many client districts. Thank you again. Thank you.
Thanks, Andrea.
Conference Operator, KARSCO: The next question is from Guido Crivellaro of a r Horizon. Please go ahead.
Alessandro Fabroni, Group CEO, CESA Group: Good afternoon. May may I ask you to give us a detail? You’ve seen a a decrease in the net financial position of about 52 or 70,000,000, depends on IFRS or not. I’ve not understood exactly the different voices that has impacted the the net financial net financial position. The CapEx, what has been spent for MMA, the impact of the working capital.
May I ask you to give a breakdown of the different voices? Thank you. So first of all, the difference between the two relation depends on I’ve heard that in particular some debt towards minorities that we reported that we accounted for referring to, in particular, business services sector that is improving, growing really well. And so we underline the expectation of growing in terms of the DDA of this specific sector. So the the fiscal year was fiscal year with investment higher than expected because we closed with €160,000,000 of investment compared to around 130 of the previous year and a new target of 80,000,000 for the new fiscal year 02/1926.
Another point another another driver was the the dividend distribution part of my back that we increased, and so we reached about €30,000,000. So that combined with 162,000,000 of investment reached the amount of 190. We generated around 120, €125,000,000 of cash in terms of cash from operation. And so we we have the worsening of 60 to 70,000,000 in terms of net financial position reported and around 60,000,000 in terms of net financial position. In terms of working capital manager, we we we had a decline because we moved from around net working capital equal to zero to net working capital for about €25,000,000.
So we recover in comparison with the situation of October because on the as of October, the gap in comparison to the previous year was a gap of about 100,000,000, more than 100,000,000. Now it’s about 50. So now we would have clear targets to improve the financial position in in the coming year and to increase our cash flow generation from 120 to €150,000,000. Obviously, I will be a benefit in the new history up also from the reduction in net financial charges that improved by 10% in q four only and we expect to improve significant way in the current quarter.
Conference Operator, KARSCO: The next question is from Simon Vanclage of Discover Capital. Please go ahead.
Alessandro Fabroni, Group CEO, CESA Group: Yeah. Thanks. I would just like to clarify on the 80,000,000 of investments that you’re planning down from a 150, I think, the past. How does this split into CapEx and sort of investments into m and a? Thank you.
Yes. Most of these investments will be CapEx and also internal development of digital platform and rapid application with the adoption of AI automation and so on the so called digital networks. We identify just $33.00 euro from m and a. And in any case, we don’t reflect the potential increase from m and a in our field in terms of 2026 or 2027 plan. Understood.
Thank you. Thank you.
Conference Operator, KARSCO: Once again, if you wish to ask a question, please press and 1 on your telephone. For any further questions, please press and one on your telephone. Mister Sabrone, there are no more questions registered at this time.
Alessandro Fabroni, Group CEO, CESA Group: So we thank you very much for all participants. And as usual, we stay available with our team for additional information. Thank you very much, and good afternoon.
Conference Operator, KARSCO: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.
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