Brockhaus Technologies (BKHT) Q1 2025 earnings summary

Executive summary

• Focuses on acquiring and growing technology champions in the German Mittelstand, emphasizing high margins, cash conversion, and long-term growth potential.

• Demonstrates a 20+ year track record of superior returns, with IRRs up to 53% and gross multiples up to 2.8x across private equity funds.

• Operates as a technology group with a scalable, sustainable business model and direct management equity exposure.

• Revenue grew 7% year-over-year to €42.4m in Q1 2025, but EBITDA dropped sharply to €0.6m from €11.1m in Q1 2024 due to higher costs and delayed revenue recognition.

• Publication of 2024 financial statements and AGM postponed due to ongoing audit and internal investigation at a foreign IHSE subsidiary.

Financial highlights

• Preliminary 2024 revenue reached €205m, with adjusted preliminary EBITDA of €66m (32% margin).

• Q1 2025 group revenue was €42.4m, up 7% year-over-year; adjusted EBITDA was €2.4m, down from €11.4m in Q1 2024.

• Total cash and cash equivalents stood at €42m at the end of March 2025.

• Cost of materials rose 51% year-over-year, and personnel expenses increased 39% due to acquisitions and growth initiatives.

• Cash flow from operating activities declined to €-7.1m (Q1 2024: €5.2m), mainly due to lower EBITDA and delayed lease receivable forfeiting.

Outlook and guidance

• 2025 expected to start slowly, with revenue growth driven by increased resale of bikes at lease-end and continued internationalization.

• Strategic focus on expanding market penetration, increasing usage rates, and broadening the product offering through acquisitions and platform enhancements.

• Organic revenue growth and strong profitability expected for 2025, but medium-term outlook for 2025 withdrawn; specific forecast to be published with the 2024 Annual Report.