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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
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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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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