Technogym S.p.A. is an Italian company specializing in the manufacturing of sports and leisure equipment, founded in 1983, and headquartered in Cesena, Italy. Technogym provides an integrated set of smart fitness equipment, digital platforms, adaptive training programs, and mobile applications, all designed to provide users with a tailored exercise experience, whether at home, in the gym, or on the move. With around 2,500 employees in 14 international branches, and 100 different countries. The company has over 100,000 Wellness centers and 500,000 private homes, training more than 70 million people with Technogym equipment.

The company operates through two customer divisions, including B2B (79.2% of H1 25 revenue) and B2C (20.8%). The company distributes its products through four distinct channels namely: Field sales (65% of H1 25 revenue), Wholesale (24.9%), Inside sales (6.6%), and Retail (3.5%). Its business is geographically segmented into five regions: Europe (46.5% of H1 25 revenue), Americas (16.8%), MEIA (13.3%), APAC (13%), and Italy (10.4%).

B2B drove revenue growth in H1 25 

Technogym released its H1 25 results on July 31, 2025, reporting a 14.1% y/y increase in revenue to €458.8m, driven by double-digit growth in customer segments: 15.1% y/y growth in B2B revenue, reaching €363.4m, supported by strong growth in Field sales and Wholesale channels, followed by 10.4% y/y increase in B2C revenue, reaching €95.3m, pushed by a robust 48.4% y/y growth in Retail segment.

Geographically, revenue in the Americas’ grew at 20.2% y/y, reaching €77m, supported by North America and LATAM. A favorable growth trend of 18.2% y/y was witnessed in revenue from Italy, reaching €47.7m followed by 15.4% y/y increase in the European region, supported by Spain, the UK, and Portugal, reaching €213.4m.

EBITDA increased by 27.2% y/y to €84.8m, with its margin expanding 19bp to 18.5%; this growth is attributed to growth in sales volumes, improved product mix, and cost reductions reached through revision of business arrangements with select suppliers, and initiatives to redesign products. Net income rose by 34.4% y/y to €43.6m, driven by sound financial management.

During H1 25, the company reported FCF of €70.7m, with 86% recurring cash conversion rate, driven by robust cash inflow from operations and efficient net working capital management.

Technogym collaborates with ŌURA

Technogym has partnered with ŌURA, marking a significant advancement in personalized fitness and wellness technology. Integrating Oura Ring’s recovery data such as sleep stages, heart rate variability (HRV), etc. with Technogym App would enable users gain deeper insights into their physiological readiness. This collaboration allows dynamic adjustment of training intensity and type based on real-time recovery measures and boosts Technogym’s AI Coach capabilities.

This partnership places Technogym as a leader in data-driven fitness, boosting its ecosystem of offerings. It confirms the company’s brand as an innovator in preventative health and performance optimization. In addition, it would boost the company’s value proposition, bolster premium pricing strategies, and positively contribute to long-term growth and profitability.

Robust FCF growth

Technogym has demonstrated robust performance over FY 21-24, achieving a revenue CAGR of 13.8%, reaching €901m in FY24. This growth was driven by robust rebound in B2B segment post pandemic, bolstered by investments in corporate wellness and hospitality sector. In addition, the company’s increased focus on digital innovation and geographic expansion over this period accelerated top-line performance.

Furthermore, EBITDA registered a CAGR of 19.9%, reaching €152m. Consequently, margins improved by 244bp to reach 16.9%. Net income rose at a CAGR of 11.3% to €87m.

Over FY 21-24, the company experienced a rise in FCF from €9.6m to €113m, bolstered by growth in cash flow from operations, rising from €93.2m to €155m. In addition, cash and cash equivalents rose from €174m to €269m and total debt declined from €131m to €111m, consequently the gearing ratio improved, declining from 42.2% to 28.6% in FY 24.

In comparison, ABEO SA, a regional peer, reported a lower revenue CAGR of 6.6% over FY 22-25, reaching to €249m in FY 25. EBITDA declined at a CAGR of minus 0.7% to €20.8m, with margin of 8.4%. In addition, net profit declined at a CAGR of minus 4.1% to €6.3m in the same period.

Stock returns outpaces that of peer

Technogym’ stock has risen by 62% over the past year, indicating strong performance and investor gains over the period. In comparison, ABEO delivered negative returns of minus 7%. In addition, Technogym declared a dividend of €0.8, with a rate of return of 7.7% in FY 24.

Technogym is currently trading at P/E of 28.2x, based on the FY 25 estimated EPS of €0.5, which is higher than its 3-year historical average of 22.9x and ABEO (6.8x). The company is currently trading at an EV/EBITDA of 13.7x, based on the FY 25 estimated EBITDA of €206.6m, which is higher than its 3-year historical average of 10.6x and that of ABEO, which is trading at 5x.

The stock is monitored by 10 analysts with five having ‘Buy’ ratings and five having ‘Hold’ ratings for a target price of €14. However, given that the stock is currently trading close to the analyst's target price, any dip in the near future could provide investors with a buy opportunity for the stock.

Analysts project a revenue CAGR of 8.3% for FY 24-27, reaching €1.1bn in FY 27. EBITDA is estimated to rise at a CAGR of 11.4%, reaching €246.6m, with margin expanding by 176bp to 21.6%. Net income is projected to rise at a CAGR of 15.3%, reaching €133.3m, with a margin of 11.7%. Likewise, for ABEO, the EBITDA is estimated to increase at a CAGR of 14.1% and net income is projected to increase at a CAGR of 34.4% over FY 25-28.

Overall, Technogym has delivered consistent growth propelled by its premium fitness equipment and global presence. The company’s focus on innovation and wellness with the addition of healthiness vision strengthens its brand positioning. Looking ahead, expansion into growing markets and enhancement of fitness offerings could drive future growth.

However, the company could face risks from infrequent consumer demand, intensifying competition, potential supply chain disruptions affecting production and distribution. In addition, regulatory changes and currency fluctuations could significantly pressure margins and profitability.