PREATONI: Revenue Up by 58%, but Debt Weighs on Net Income
PREATONI Group announces its 2025 results, marked by a robust operational momentum, with revenue soaring by 58% to €106.2 million and free cash flow turning positive at €17.2 million. However, a financial expense of €5.8 million brings the net income down to just €1.8 million, revealing a company facing profitability challenges despite improved cash generation.
Revenue Growth Across Sectors
The group recorded a revenue of €106.2 million in 2025, up from €67.1 million in 2024, achieving an annual growth of 58%. This increase is driven by both business divisions. The real estate development reported a revenue of €53.2 million (up from €18.1 million in 2024), boosted by steady deliveries of the Kalaranna, Uus-Kindrali in Tallinn, and City Villas in Vilnius projects. The Hospitality/Tourism sector grew more modestly to €53.0 million (+8.2% compared to 2024's €48.9 million), benefiting from a strong tourism dynamic in Italy and Egypt. The gross margin more than doubled, from €17.1 million to €36.4 million, a 2.1-fold increase. The group's EBITDA surged from €1.9 million to €25.3 million, with an EBITDA margin of 23.8% compared to 2.9% a year earlier.
Significant Improvement in Free Cash Flow
The group's free cash flow made a dramatic turnaround, from (€4.2) million in 2024 to €17.2 million in 2025, improving the cash position from €5.1 million to €15 million. This improvement reflects a gross self-financing margin of €21.6 million (up from €8.2 million in 2024) and a positive change in working capital needs of €2.6 million. However, the balance sheet remains burdened by a net debt of €73.6 million as of December 31, 2025, down by €11.7 million from 2024. Gross financial debts contracted to €88.8 million (including €31.2 million in bond loans) from €95.5 million a year earlier. This debt burden generates a negative financial result of (€5.8) million, absorbing a significant portion of operational gains and reducing the consolidated net income to €1.8 million.
Future Growth and Strategic Plans
For the 2026-2028 period, PREATONI Group aims for an average annual revenue growth exceeding 5% coupled with an EBITDA margin above 20%, assuming no major geopolitical disruptions. Real estate development is expected to benefit from good visibility thanks to a stock of products available for sale valued at €18 million at the end of 2025 and the continued marketing of projects in Vilnius, Tallinn, and Riga. The group also secured new construction permits in January 2026 and started the construction of Musketäri Majad in Tallinn. For the hospitality/tourism sector, the group has not observed any significant slowdown in bookings despite the Middle Eastern geopolitical context, although the long-term impact remains difficult to quantify. A transfer to Euronext Growth is planned for the first half of 2026.
