- Consolidated revenues at € 912.2 million, -1.7% vs first half 2024; +1.4% on a like-for-like basis and with constant exchange rates
- Operating performance of the subsidiaries significantly higher than in the first half of 2024, lower income from the management of the financial investment portfolio
- Consolidated net income from continuing operations, was € 26.6 million (€ 27.7 million in 2024); consolidated net income net of minority interests, came to € 14.2 million
- Net financial position of the parent company was positive and € 22 million higher at € 363.3 million
Milan, 1 August 2025 – The Board of Directors of CIR S.p.A. – Compagnie Industriali Riunite (“CIR”, the “Group” or the “Company”), which met today under the chairmanship of Rodolfo De Benedetti, has approved the Semi-Annual Interim Report as of 30 June 2025 as presented by Chief Executive Officer Monica Mondardini.
Consolidated results
Consolidated revenues for the first half of 2025 came in at € 912.2 million, 1.7% lower than those of 2024 (€ 928.2 million), but 1.4% higher on a like-for-like basis and at constant exchange rates. KOS’s revenues were unchanged but showed an increase of 5.1% on a like-for-like basis, while Sogefi reported a 3% decline in its revenues or -1.2% at constant exchange rates, due to market trends in Europe.
The consolidated gross operating margin (EBITDA) for the first half of 2025 came in at € 141.4 million (15.5% of revenues), up from € 134.4 million in the same period of 2024 (14.5% of revenues). The increase in EBITDA was due to the improvement in the operating profitability of both KOS and Sogefi.
The consolidated operating result (EBIT) came to € 58.1 million, versus € 49.5 million in the first half of 2024, in line with the evolution of the EBITDA.
The parent company’s portfolio of financial asset recorded positive net financial income of €3.2 million, with a return of 0.8%, compared to €17.3 million in the first half of 2024 and a return of 4.6%. The 2025 return, particularly that of the private equity portfolio, was negatively affected by the depreciation of the dollar against the euro.
The net result of continuing operations, came to € 26.6 million, compared to € 27.7 million in 2024. The net result of the Group’s continuing operations totalled € 14.2 million (€ 19.8 million in the first half of 2024).
The net result of the Group, including the discontinued operations and net of minority interests, came in at € 14.5 million, versus net income of € 114.3 million in the first half of 2024, of which € 94.5 million related to the discontinued operations. It should be remembered that during the first half of 2024 Sogefi’s Filtration division was sold, giving rise to a significant capital gain, and the sale of the real estate complex in Via dell’Orso 8, Milan by CIR S.p.A. was also completed.
The first half of 2025 saw the generation of free cash flow before IFRS 16 from the continuing operations for an amount of € 11.4 million. Despite the greater flows of self-financing, the FCF was lower than that of 2024, which came to € 31.0 million, due to the greater absorption of working capital and the higher amount of net investment in fixed assets.
At 30 June 2025, before the application of IFRS16, the positive consolidated net financial position before IFRS 16 of € 190.9 million (versus + € 202.6 million at 31 December 2024 and + € 316.2 million at 30 June 2024) consisted of the following:
- A financial surplus for CIR and its financial subsidiary CIR Investimenti of € 363.3 million, up € 22 million from € 341.3 million at 31 December 2024, thanks to the receipt of dividends for € 23 million from the subsidiaries KOS and Sogefi;
- The total net debt of the industrial subsidiaries of € 172.4 million, which increased by € 33.7 million compared to 31 December 2024 (€ 138.7 million), after the distribution of dividends of € 39.0 million in the first half of the year and taking into account the recurring increase in working capital during the first half for both operating businesses.
Financial payables for rights of use, as per IFRS 16, totalled € 797.5 million at 30 June 2025 and thus the total consolidated net financial debt amounted to € 606.6 million (€ 615.0 million at 31 December 2024).
The equity of the Group stood at € 793.4 million at 30 June 2025, compared to € 791.2 million at 31 December 2024, posting an increase of € 2.2 million.
KOS
In the first half of 2025 KOS reported revenues of € 403.6 million, in line with the corresponding period of the previous year and up by 5.1% on a like-for-like basis (excluding the revenues of first half 2024 from the Suzzara hospital management, which came to an end in June 2024).
In Italy, the nursing homes (RSAs) reported a 5.8% rise in revenues thanks to the greater number of occupants in the facilities already operating (with an occupancy rate that rose from 92.9% in the first half of 2024 to 94.3%), and to a sustainable increase in fees and to the contribution of recently opened facilities. Rehabilitation, Psychiatric, non-residential and Acute Care reported an overall increase in revenues of 0.5%.
In Germany, revenues rose by 9.0%, with an occupancy rate of 90.6%, 1 percentage point higher than the previous year, and a substantial increase in fees agreed upon with the relative entities in a context of continuing increases in the labour costs for healthcare workers.
EBIT came to € 31.1 million, equal to 7.7% of revenues, up from € 27.9 million, 6.9% of revenues, in the first half of 2024.
Net income came in at € 7.9 million, up from € 5.0 million in the first half of 2024. It should be noted that, mainly due to the timing of tariff increases in Germany during the year, the second half typically records a more than proportional result compared to the first.
Free cash flow before IFRS16 was stable, with an increase in working capital of € 23.4 million resulting from the increase in receivables with the Public Administration, due to the rise in revenues and to the intra-annual recurring trend of these receivables.
The net debt before IFRS16 stood at € 153.5 million at the end of June 2025, compared to € 129.6 million at 31 December 2024, after investments in development of € 2.8 million and dividends of € 21.1 million, of which € 12.2 million paid to CIR.
The net debt including the receivables for rights of use totalled € 911.5 million at 30 June 2025, versus € 902.2 at 31 December 2024.
Sogefi
The consolidated revenues of the Sogefi group totalled € 508.6 million compared to € 524.1 million in first half 2024, posting a decline of 3.0%; at constant exchange rates revenues were down by 1.2%: -7.5% in Europe due to the weakness of the market, +5.6% in North America, +8.3% in South America and +9.9% in China.
EBIT, amounting to € 32.7 million, rose compared to the first half of 2024 (€ 27.8 million), with an EBIT margin of 6.4% of revenues, versus 5.3% in first half 2024.
Net income from continuing operations came to € 19.8 million, compared to € 10.8 million in first half 2024 (net income, including discontinued operations and net of the minority shareholder portion, totalled € 18.7 million versus € 145.8 million in the first half of 2024, which contained the net income of Filtration division for the first five months of the year and the net capital gain realized on the sale).
The free cash flow of continuing operations before IFRS 16 was a positive € 10.7 million, down from € 21.9 million in first half 2024. The lower FCF compared to the previous period was due to non-recurring cash flows reported in 2024 as the balance of intercompany payables by Filtration division before it was sold.
Net debt before IFRS 16 stood at € 19.3 million at 30 June 2025, compared to net debt of € 9.5 million at 31 December 2024, after dividend payments were made for a total of € 17.9 million, of which € 10.7 million to CIR.
Net debt including payables for rights of use stood at € 59.3 million at the end of June 2025, compared to net debt of € 55.0 million at 31 December 2024
Financial Management
In the first half of 2025 the financial markets were characterized by a high level of volatility and a marked weakness of the US currency, which against the euro lost 12.2% between the end of 2024 and 30 June 2025.
The parent company’s portfolio of financial assets, managed mainly by the subsidiary CIR Investimenti, reported net financial income of € 3.2 million, with a return of 0.8%, compared to € 17.3 million in the first half of 2024 with a return of 4.6%. More specifically, the return on “easily convertible assets” (shares, bonds, hedge funds) was 1.6%, while the private equity portfolio, mostly dollar denominated, suffered a loss of € 2.3 million, -3.9%, caused by the trend of the euro/dollar exchange rate.
Significant events that have occurred since 30 June 2025
As far as the Parent Company and its subsidiaries KOS and Sogefi are concerned, there have been no significant events that could affect the economic, patrimonial and financial information described.
Outlook for the year
As far as KOS is concerned, there is expected to be further consolidation of occupancy levels thanks to the gradual recovery of the regions that have not yet returned to full operativity and also to the growth of the facilities that have recently started operating. Provided there are no facts or circumstances that cannot at present be predicted, KOS’s operating results for 2025 should show a significant improvement on those of 2024,
As for Sogefi, visibility as to the performance of the automotive market in coming months is severely compromised by the difficulty in predicting the results of the tariffs.
On the basis of the latest S&P Global (IHS) estimates of world vehicle production and assuming a certain stability in commodity and energy prices, Sogefi confirms for 2025 its forecast of a mid-single-digit decline in revenues and a slightly higher EBIT margin than that recorded in 2024, excluding any non-recurring charges not expected at present and any new events/circumstances that could have a negative impact on the automotive market. However, a more significant decline in volumes over the next few months as a result of the tariffs cannot be ruled out.
As regards management of the financial assets of the holding company, given the continuing uncertainty linked to the geopolitical, macroeconomic and financial environment, the markets are expected to be subject to a high level of volatility.
