paragon: Preliminary results for the first nine Months of 2025 – Forecast for the Automotive Segment raised

Delbrück, November 3, 2025 – paragon GmbH & Co. KGaA [ISIN DE0005558696] today published preliminary nine-month figures and clarified its outlook for the 2025 fiscal year. Despite the decline in revenues due to the sale of the starter battery business and reduced customer call-offs, efficiency gains and strict cost discipline enabled the EBITDA margin to be increased to 15.0% and the EBIT margin to 5.7%. Contrary to all the negative news from the industry, the Delbrück-based automotive supplier confirms the annual sales forecast of €115 to €120m for its core automotive business, which was last published on August 19, 2025, on the occasion of the half-year results, and raises the EBITDA forecast for 2025 from approximately €18.0m to approximately €19.0m. As previously reported, however, the start- up phase of the new additional business with consumer products is taking significantly longer than originally expected due to delays in the activation of distribution channels. Most recently, severe weather in China also hampered the supply chain that had already been established. The company has therefore changed its plans and does not expect this business segment to ramp up sustainably until next year.

• Preliminary figures show revenues in the automotive segment at €83.4m in the first nine months (previous year: €106.3m) – decline mainly due to the sale of the starter battery business and lower call-off levels over the course of the year

• Group EBITDA virtually stable at €12.5m despite lower sales (previous year: €12.9m) – EBITDA margin rose to 15.0% (previous year: 12.1%)

• Group EBIT improved from €3.9m in the prior-year period to €4.8m – EBIT margin now at 5.7% after 3.7% (prior year)

• Noticeable upturn in business with long-standing major customer Porsche and Chinese customers in the second half of the year – ongoing cost savings continue to have a positive effect on earnings development

• paragon considers itself well equipped to deal with the current chip crisis; possible indirect effects of supply bottlenecks at OEMs are being monitored on an ongoing basis

• Due to this positive development, the company is raising its forecast for the Automotive segment for 2025 and now expects EBITDA of around €19m with revenues between €115m and €120m

• Sales planning for the newly created Consumer Products segment has been adjusted due to external conditions; this has no impact on the stable development of the automotive businesswho already pursued the vision of making great sound accessible to everyone with the “Arcophon.”