Original-Research: CENIT AG (von GBC AG): BUY

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Original-Research: CENIT AG - from GBC AG

13.05.2026 / 11:30 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of GBC AG to CENIT AG

Company Name: CENIT AG

ISIN: DE0005407100

Reason for the research: Research Comment

Recommendation: BUY

Target price: EUR 16.00

Last rating change:

Analyst: Cosmin Filker; Marcel Goldmann

Q1 revenue in line with expectations, EBITDA improves significantly; target

price and rating confirmed

In the first three months of 2026, CENIT AG achieved a significant

improvement in its operating metrics. While revenue rose only slightly to

EUR52.47 million (PY: EUR51.51 million), the cost-saving measures implemented in

previous reporting periods led to a noticeable improvement in EBITDA to

EUR5.03 million (PY: -EUR2.44 million).

The slight increase in revenue, which is in line with expectations, is

attributable in particular to the further rise in revenue from proprietary

software sales by 4.7% to EUR4.62 million (PY: EUR4.41 million) and in

consulting/service revenue by 4.5% to EUR23.15 million (PY: EUR22.15 million).

In contrast, revenue from third-party software fell to EUR24.58 million (PY:

EUR24.92 million), which, in addition to a slight decline in the customer

base, is attributable to the continuing SaaS trend. Driven by market

conditions, the trend continued whereby increases were achieved particularly

in the high-margin revenue segments.

The rise in high-margin revenue led to a slight improvement in gross profit

to EUR31.40 million (PY: EUR30.70 million) and in the gross profit margin to

59.8% (PY: 59.6%). Below gross profit, the cost-saving measures achieved

following the completion of the restructuring program become apparent. CENIT

AG recorded a significant reduction in personnel expenses in particular,

down to EUR22.69 million (PY: EUR28.74 million). In addition to the higher

number of employees, the prior-year figure was impacted by extraordinary

expenses of EUR3.35 million incurred in connection with the restructuring

measures. Consequently, EBITDA rose to a new Q1 record of EUR5.03 million (PY:

-EUR2.44 million), and the corresponding EBITDA margin to 9.6% (PY: -4.7%).

The sharp rise in EBITDA is also reflected in the subsequent profit figures,

which likewise set new records for a first quarter. EBIT increased to EUR2.97

million (PY: -EUR5.44 million), and net income rose to EUR2.51 million (PY:

-EUR4.71 million).

Of particular note is the once again high cash flow from operating

activities amounting to EUR13.76 million (PY: EUR11.66 million). Typically, the

company receives substantial customer payments at the beginning of the year

for services to be rendered during the year. Compared to the end of the

fiscal year on December 31, 2025, contract liabilities increased to EUR40.63

million (31.12.25: EUR21.61 million). This led to a corresponding decrease in

working capital and, conversely, to an increase in cash and cash equivalents

to EUR28.64 million (31.12.2025: EUR16.22 million).

With the publication of the quarterly report, CENIT's management team, under

the new leadership of Martin Thiel (CEO) and Dr Johannes Fues (CFO), has

confirmed the forecast published in the 2025 Annual Report. For the current

financial year 2026, consolidated revenue of at least EUR210 million and

EBITDA of at least EUR18 million are still expected.

Whilst revenue has remained in line with expectations, the significant

improvement in earnings, driven by sustained cost reductions and performance

improvements, provides an excellent foundation for achieving the EBITDA

guidance targets. In our view, the confirmation of the earnings guidance is

due to the company's currently conservative approach. The first quarter has

shown that even with low revenue growth, achieved with a significantly

reduced workforce, substantial cost savings and thus earnings improvements

can be realised. On this basis, the coming quarters are also likely to show

above-average earnings improvements, making an upward revision of guidance

during the year probable.

Until then, we are maintaining our forecasts for the current and coming

financial years. For 2026, our figures of EUR214.74 million for revenue and

EUR19.13 million for EBITDA are slightly above the lower end of the forecast

range communicated by the company. Accordingly, we are also maintaining our

DCF valuation model unchanged. With a fair value of EUR16.00 per share, we

continue to assign a "BUY" rating.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=d185d281eb2ede337ba84c4bf2ca671a

Contact for questions:

Contact for questions:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Disclosure of potential conflicts of interest pursuant to Section 85 WpHG

and Art. 20 MAR The company analysed above has the following potential

conflict of interest: (5a,6a,7,11); A catalogue of potential conflicts of

interest can be found at: https://www.gbc-ag.de/de/Offenlegung.htm

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Date (time) Completion: 13.05.2026 (07:58 am)

Date (time) first transmission: 13.05.2026 (11:30 am)

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2326972 13.05.2026 CET/CEST

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