Brockhaus Technologies (BKHT) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 reached €181.6 million, up 3.6% year-over-year, mainly driven by increased bike resales at BikeLeasing and platform expansion, despite a challenging economic environment.

• Adjusted EBITDA declined by 28.4% to €48.7 million, and adjusted EBIT fell by 33%, mainly due to increased investments in BikeLeasing's transformation and higher personnel and operating expenses.

• BikeLeasing is transforming into a multi-benefit platform and expanded internationally with a minority stake in US-based Ridepanda.

• Security Technologies (IHSE) revenue declined 12% to €21.3 million, but gross profit margin rose due to a stronger defense business, which now accounts for 45% of IHSE revenue.

• Profit for the period dropped sharply to €0.7 million from €13.1 million in 9M 2024.

Financial highlights

• Group gross profit margin was 64.1%, down from 68.2% in 9M 2024.

• Adjusted EBITDA margin dropped to 26.8% from 38.8% in the prior year; adjusted EBIT margin fell to 23.9% from 36.6%.

• Free cash flow before taxes was €17.5 million, below the prior year due to lower operating income and increased refinancing backlog.

• Net debt stood at €45.0 million, with a leverage ratio of 0.99x adjusted EBITDA, well below the 2.5x internal limit.

• Cash and cash equivalents at period end: €37.8 million, down from €48.4 million at year-end 2024.

Outlook and guidance

• Full-year 2025 revenue expected between €225 million and €235 million, representing 10%-15% organic growth.

• Adjusted EBITDA guidance for 2025 is €50–55 million, reflecting higher personnel and operating expenses for strategic growth initiatives.

• Management expects to reach cash compounding mode in 2026, supported by regular distributions and loan repayments.