GEVORKYAN Forges Loyalty with New Employee Stock Ownership Plan

BANSKÁ BYSTRICA, Slovakia – February 09, 2026 – In a significant move to align employee interests with corporate success, GEVORKYAN, a.s., a European leader in powder metallurgy, has launched its first-ever Employee Stock Ownership Plan (ESOP). The initiative allows employees to acquire company shares on preferential terms, starting with a select group of key personnel who have demonstrated long-term commitment and a profound impact on the company's trajectory.

This initial phase of the ESOP targets dozens of employees who have been with the company for more than five years. According to Dipl. Ing. Artur Gevorkyan, the company’s Chairman of the Board, the selection went beyond simple metrics of tenure. “The supervisory board’s sole criterion was the answer to the question of whether a person truly lives for this company, thinks about how to make it better, how to solve problems, and whether they can genuinely have a fundamental impact on our results,” he stated. “It was several dozen people who don’t just go to work, but who truly live the company.”

An Investment in People and Performance

The structure of GEVORKYAN's ESOP is designed to reward the deep-seated dedication that drives innovation. By offering ownership stakes to those who actively contribute to problem-solving and corporate improvement, the company is reinforcing a culture of shared responsibility. Chairman Gevorkyan clarified that this ethos is not about prioritizing work over personal life, but rather fostering “an understanding of the connection that how we work determines the reality we live.”

This strategic initiative is not a one-time event. GEVORKYAN has already announced plans for a second, broader round of share allocations scheduled for the summer of 2026, which will extend ownership opportunities to a wider group of its workforce. This phased approach allows the company to methodically integrate an ownership mindset throughout its operations.

Research consistently shows that such plans have a transformative effect on the workplace. Companies with ESOPs often report higher levels of employee engagement, motivation, and productivity. By becoming part-owners, employees gain a direct stake in the company's financial success, which can lead to enhanced job satisfaction, lower turnover, and a more collaborative environment. Studies have found that employee-owned firms are three to four times more likely to retain staff, a critical advantage in specialized industries.

A Strategic Edge in the Global Metallurgy Market

The timing of the ESOP launch is particularly noteworthy, coming as GEVORKYAN solidifies its position as a dominant force in advanced manufacturing. The company, which specializes in producing complex components from metal powders using a unique combination of technologies like sintering, metal injection molding (MIM), and 3D printing, is on a strong growth trajectory. With reported revenue growth of 25% in 2024 and a robust 35% EBITDA margin, the firm's financial health provides a solid foundation for the new ownership program.

Having successfully transitioned from the Prague Stock Exchange's PX Start market to its prestigious PX Prime market in 2023 and secured a dual listing on the Bratislava Stock Exchange in 2024, GEVORKYAN is clearly focused on expansion and market leadership. The ESOP can be viewed as a strategic tool to power this ambition. In a sector where innovation is paramount and competition is global, a workforce of employee-owners is a distinct competitive advantage. This shared-ownership culture fosters the agility and commitment necessary to serve a demanding client base of multinational corporations across more than 30 countries.

Securing Talent Amidst an Industry Boom

GEVORKYAN operates within the rapidly expanding powder metallurgy market, which was valued at over USD 26 billion in 2026 and is projected to exceed USD 32 billion by 2031. This growth is fueled by surging demand from the automotive sector, particularly for electric vehicles, as well as aerospace, defense, and the broader adoption of additive manufacturing. These industries require lightweight, high-strength components with complex geometries, a core competency of powder metallurgy.

However, this industry boom creates intense competition for a limited pool of highly skilled engineers, technicians, and operators. In this context, GEVORKYAN's ESOP is a powerful talent retention and attraction strategy. Beyond fostering loyalty, it offers a tangible path to wealth creation for employees. Research on established ESOPs indicates that employee-owners often accumulate significantly more personal wealth and enjoy greater retirement security compared to their peers in conventionally owned companies. By offering a stake in its future, GEVORKYAN is making a compelling case for being an employer of choice in the advanced manufacturing landscape.

A European Trend Towards Shared Success

While the United States has a long-established ESOP framework, employee share ownership is a growing trend across Europe. Recent data shows that over 86% of large European companies now offer some form of employee share plan, recognizing its benefits for corporate performance and employee well-being. GEVORKYAN's initiative places it at the forefront of this movement within the Central European industrial sector, potentially serving as a model for other manufacturing firms in the region.

The successful implementation of such a plan requires navigating a complex web of corporate, labor, and tax laws. GEVORKYAN's collaboration with the law firm Havel & Partners for the legal structuring of the program underscores the seriousness and professionalism of the undertaking. This expert guidance ensures the ESOP is built on a solid legal foundation, providing security for both the company and its new employee-shareholders.

By turning its most dedicated employees into owners, GEVORKYAN is not merely offering a financial benefit; it is fundamentally reshaping its corporate culture. This investment in human capital is designed to cultivate a resilient, innovative, and deeply committed workforce, ensuring the company is well-positioned to continue its leadership in the dynamic global market for years to come.