PWO AG: PWO expects a further decline in revenue at its German site in 2026, accompanied by cost increases that will weigh on the Group’s EBIT

EQS-Ad-hoc: PWO AG / Key word(s): Forecast/Results Forecast PWO AG: PWO expects a further decline in revenue at its German site in 2026, accompanied by cost increases that will weigh on the Group’s EBIT 16-Jan-2026 / 16:00 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group. The issuer is solely responsible for the content of this announcement. PWO expects a further decline in revenue at its German site in 2026, accompanied by cost increases that will weigh on the Group’s EBIT

Oberkirch, January 16, 2026 – During the preparation of the 2026 budget, it is becoming increasingly clear that, due to the current framework conditions and customers’ planning, revenue at our German production site is expected to decline further while costs increase. This development is negatively affecting the PWO Group’s revenue and, more importantly, its earnings before interest and taxes (EBIT). Although our international subsidiaries may offset part of this decline through sales growth, the significantly increasing operating losses at the German site will still considerably reduce the overall Group’s consolidated EBIT.

For 2026, we currently expect revenue of around EUR 500m and consolidated EBIT before currency effects in a range of EUR 13–17 million. Further key figures will be published as soon as the outlook for 2026 becomes more concrete.

For 2025, we continue to expect EBIT before currency effects in the range of EUR 23‑28 million (with the upper half of the forecast range being very ambitious) and revenue of around EUR 510m.

For the 2026 financial year, the Executive Board’s forecast reflects 2 opposite factors: possible revenue and EBIT growth at our international locations on one hand and an increasing deterioration of performance and profitability at the German production site on the other hand.

Call-off plans from key customers of the German production site indicate further declines in 2026. These customers report falling orders at their own German locations. Competitive pressures continue to shift production to countries with more favorable industrial conditions. Unfortunately, the "autumn of reforms" announced by the German Government has not materialized. The necessary course corrections by the governing coalition, which were intended to initiate economic change in Germany and strengthen our industry, are still not visible.