Phoenix Mecano AG reported QQ1 2025 revenue of EUR 188.6 million, with a gross margin of 51.0% and an operating margin of 5.65%, culminating in net income of EUR 6.95 million and basic earnings per share (EPS) of EUR 7.47. Year-over-year (YoY) revenue declined 1.46% and net income fell 19.19%, while sequential (QoQ) comparisons show a stronger deterioration in profitability with operating income down 15.71% and net income down 19.90%. The company maintains a robust gross margin despite a revenue headwind, underscoring favorable product mix and ongoing cost discipline, but faces near-term pressure from higher operating expenses and capex intensity. Free cash flow remained negative at EUR -3.9 million as capex exceeded operating cash flow, driven by investments in property, plant and equipment and dividends that exceeded current period net income. Balance sheet liquidity remains solid with EUR 86.8 million in cash and cash equivalents and a net debt position of EUR 50.7 million, reflecting prudent balance sheet management in a cyclical Industrials environment.