Sonel S.A. – Result note 1Q’26

We view these results positively. They clearly exceeded our expectations, driven by a higher gross margin. The year-on-year decline in revenue was expected (Foxytech's deconsolidation). We positively assess the increase in margins from core operations, after several quarters of very low readings (28% vs. 23% in Q4 2025). Sales of meters (core business) continue to grow. Furthermore, costs remain under control, and the company's balance sheet remains strong (PLN 18 million in net cash, PLN 1.3 per share, unchanged quarter-on-quarter). We are negative about the continued decline in revenue from assembly services, low operating cash /low (due to an increase in working capital, primarily inventory), and Foxytech's weak results. After the /irst quarter, Sonel achieved 21% of our revenue forecast for this year (achieving this forecast is still a realistic, but ambitious, goal), approximately 27% of our projected EBIT/EBITDA pro/its, and approximately 20% of our net pro/it. Given the very likely settlement of R&D tax relief in the last quarter (as has been the case in the last few years), the achievement of our pro/it forecasts for this year (EBITDA PLN 28 million, NPV PLN 17 million) remains unthreatened.