Operator

Good afternoon, this is the conference operator. Welcome, and thank you for joining the F.I.L.A First Quarter 2026 Results Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Cristian Nicoletti, CFO. Please go ahead, sir.

Cristian Nicoletti
Chief Financial Officer

Ladies and gentlemen, good afternoon. I am Cristian Nicoletti, CFO of F.I.L.A. Group. The group CEO, Massimo Candela; and the group COO, Luca Pelosin, will also participate in today's conference call.

Let's start with a brief overview on our financial results for the first quarter of 2026. I would like to underline that Q1 2026, in line with budget expectation, reflects progressive shift in F.I.L.A. business seasonality to meet the quarters of the year. Also considering the consolidation of Seven Group, which has low revenue seasonality and a negative EBITDA contribution in Q1.

Reported results also reflect the weakness of the euro versus the U.S. dollar. On organic basis, excluding the negative tariff impacts, the group EBITDA increased, delivering a very satisfactory level of profitability.

We are pleased with the free cash flow to equity performance, which excluding the Seven Group cash absorption, stood at negative EUR 40.9 million (sic) [ EUR 48.9 million ], improving versus the EUR 55.5 million in Q1 2025.

Regarding the net bank debt, the increase at the end of March reflects the full consolidation