Dear Shareholders, Dear Colleagues, Partners and Friends,
In 2025, the Company’s production programme continued to be based on the stable manufacture of welded structures and components for road construction machinery, mining equipment, forestry and woodworking machinery, as well as machinery for the plastics industry.
At the same time, the Company continued to expand its product and customer portfolio, particularly in areas that had played a complementary or developmental role in recent years. This primarily involved the development of welded structures and components for the railway industry, which we regard as a promising segment with significant growth potential.
The transformation of the Company continued throughout 2025. Its objective is to strengthen PPS Group’s position within the supply chain and gradually shift the perception of the Company from that of a component manufacturer to that of a technological partner for major multinational customers.
Our ambition is not merely to supply individual parts and components, but increasingly to offer complete and functional modules with higher added value. At the same time, we have built on our tradition of in house development and revived the design and prototyping of our own engineering solutions.
In 2025, PPS Group introduced the design and engineering concept of a new universal front loader intended for agriculture, municipal services, construction and logistics. This project represents another step in implementing our strategy of strengthening our proprietary product portfolio.
Despite the fact that the Company’s revenues have declined over the past two years from the record level of EUR 93 million achieved in 2023 to approximately EUR 65 million, we have adopted a number of measures aimed at maintaining a reasonable level of profitability and EBITDA generation.
The decline in revenues was primarily caused by the turbulent development of the global economy. Several of our long standing multinational customers recorded production declines ranging from 20% to 40%, which naturally affected order volumes as well. Nevertheless, in 2025 we succeeded in stabilising employment levels and maintaining a stable workforce of permanent employees.
The Company remained profitable despite facing lower order volumes and increasing pressure from customers to reduce product prices over the past two years. PPS Group recognises that its future must be built primarily on its own capabilities, innovation and production diversification. Alongside the development of our own products, we therefore consider it essential to strengthen our activities in both the defence and railway sectors.
(Annual Report of PPS Group, a.s. for 2025)