Sabaf S.p.A. reported second-quarter 2026 sales of €73.6 million, up 3.5% year-over-year or 4.4% at constant exchange rates, though the Italian burner and valve maker saw shares slip 2.65% to $11 on the news.
The company, which operates in residential gas burners and components for domestic appliances, delivered an EBITDA of €10.7 million in Q2, slightly below the €10.9 million posted a year earlier. The quarter also marks a notable contraction in net income, which fell to €0.9 million from €3.2 million in Q2 2025. EBITDA margin improved to 14.5% from 13.6% in Q1 as the firm pressed ahead with pricing adjustments negotiated largely from the start of the second half.
Regional performance told a divergent story. Sales in the Africa and Middle East region jumped 30%, partly because deliveries postponed during the first quarter by the conflict in Iran were shifted into Q2. Asia posted a 17% gain, driven by the ramp-up of Sabaf's Indian plant; the valves business there is running at full capacity, and capacity-expansion plans aim to raise annual throughput from roughly €3 million to €5 million during the second half. A custom burner product for India is in testing, with commercial sales expected to begin in 2027.
Latin America, led by Brazil, posted double-digit growth with the Brazilian plant operating at full capacity, while Mexico's first-half sales reached approximately €4.5 million — up about 20% versus the same period last year. Second-half Mexico revenue is expected to reach at least €8 million, supported by a new product platform. The Mexican plant added a fourth die-casting machine this year and is planning a fifth for early 2027, which would boost capacity by roughly 25%.
In mature markets, the picture was more muted. CEO Gianluca Beschi noted that appliance sales in the United States and Europe remain roughly 10% below 2019 levels. Mass-market demand in the U.S. was weak, but the high-end segment held up better. Beschi highlighted currency headwinds throughout the half, citing a weak dollar against both the euro and the regional currencies of Brazil and Mexico, and said the high-end market was less exposed to inflationary pressures than broader mass demand.
On the balance sheet, Sabaf entered the second half with a net financial position of €85.2 million, comprising €60 million in pure debt, €19 million tied to the MEC minority liability, and €6 million in lease-related obligations. The group paid €7.5 million in dividends during the quarter.
Sabaf also pointed to progress at MEC, the American company it acquired in 2023, reporting that the division now runs with an EBITDA margin above 15% — roughly double the level when Sabaf took control three years ago. Beschi confirmed that new pricing agreements have been secured, mostly effective from the start of H2, though some negotiations remain ongoing.
Sabaf's shares closed at $11, down 2.65%, trading roughly 7.3% above its 52-week low of $10.25 and about 25.2% below its 52-week high of $14.70.
