Europlasma reports €1.019 million in cash and warns of going-concern risks
Key Facts
Europlasma warned in its first-half results published on 30 October 2026 that treasury difficulties threaten the group’s ability to continue operating in the short term. The company said continued operations depend on its ability to raise the expected liquidity, execute the bond financing and carry out restructuring measures. Cash and cash equivalents stood at €1.019 million on 30 June 2026, compared with €7.453 million on 31 December 2025. The decline puts limited liquidity at the center of the warning, but does not mean the company has declared bankruptcy or defaulted. Europlasma said its treasury forecasts cover liquidity needs for the following twelve months, while financing and restructuring assumptions remain uncertain.
The company is relying on bond financing with a maximum nominal amount of €45 million, of which it said €42 million remains available in tranches. That balance is not cash available immediately or guaranteed financing, however; drawing future tranches is conditional. Europlasma therefore linked its ability to continue operating to securing the expected liquidity through this financing and implementing its restructuring plan. It said failure to raise that liquidity could cast doubt on its ability to continue operating. This reliance highlights the difference between the remaining nominal value of the financing and the group’s actual cash balance.
The results showed consolidated revenue falling to €22.259 million in the first half of 2026 from €32.914 million in the comparable period of 2025. The EBITDA loss widened to €21.140 million from €10.905 million in the first half of the previous year. Net loss for consolidated companies was €29.189 million, compared with €28.174 million. The figures reflect a deterioration in operating performance, with the company linking the pressure to factors affecting its industrial units. Operating activities also recorded negative cash flow of €11.201 million during the period.
Europlasma attributed the decline to accounting for FDB Industries’ fixed costs throughout the first half, after the company had been included for only two months in the comparable period, and to a production shutdown after a fire. It said raw-material supply constraints at Valdunes Industries slowed train-wheel production. At Les Forges de Tarbes, production declined and the scrap rate for hollow bodies increased. The company attributed this improvement to a decline in receivables and inventory, and also added €2.5 million from a sale-and-leaseback of land in Tarbes.
The group recorded negative cash flow from operating activities of €11.201 million, while cash flow from investing activities was positive €684,000 and cash flow from financing activities was positive €4.076 million. Even so, these positive cash flows from investing and financing did not prevent cash from falling to €1.019 million at the end of June, from €7.453 million at the end of December 2025. Total debt was €26.8 million on 30 June 2026. Net debt reached €25.8 million, up from €12.8 million on 30 June 2025. The comparison shows net debt rising as cash contracted and revenue declined.
In a separate development involving a subsidiary, a ruling issued on 26 October 2026 opened judicial reorganisation proceedings for Les Forges de Tarbes. The proceedings do not concern a bankruptcy filing by Europlasma SA, but rather its industrial subsidiary. Le Journal des Entreprises reported that the subsidiary generated revenue of €19.8 million in 2025, according to Europlasma, and that the proceedings allow operations to continue while a recovery plan is prepared. The group said the proceedings’ effect on its business and its ability to prepare a sale of its defence business remains uncertain. These developments add to the group’s reliance on restructuring alongside raising bond financing.
Europlasma said it had begun a restructuring process aimed at strengthening operating performance, improving organisation and controlling costs. The company linked the process to efforts to address the pressures evident in its first-half results and liquidity. It stressed that its ability to continue operating depends on the successful execution of the bond financing and restructuring measures. It also warned that failure to raise the expected liquidity creates doubts about its ability to continue operating. The company said it would keep the market informed about progress on the restructuring.