Exosens (EXENS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 21.1% year-over-year to €104.9m, with like-for-like growth of 18.0%, driven by strong demand in Defense markets and robust Amplification segment performance.

• Amplification revenue surged 29.1% to €81.7m, fueled by increased production and demand for night vision products from NATO and Tier-1 allies.

• Detection & Imaging revenue declined 1.0% to €24.0m, mainly due to temporary headwinds at Telops; excluding Telops, segment revenue grew 16%.

• Adjusted gross margin rose 28.1% to €52.6m (margin rate 50.1%, up 270bps), led by Amplification growth and improved yields.

• Noxant acquisition closed in March 2025, strengthening cooled infrared imaging capabilities for Defense and Surveillance; NVLS acquisition expected in Q2 2025.

Financial highlights

• Total Q1 2025 revenue: €104.9m (+21.1% vs. Q1 2024); like-for-like growth +18.0%.

• Amplification segment: €81.7m (+29.1%); Detection & Imaging: €24.0m (–1.0%).

• Adjusted gross margin: €52.6m (+28.1%), margin rate 50.1% (+270bps).

• Amplification gross margin: €40.8m (+39.5%), margin rate 49.9% (+370bps).

• Detection & Imaging gross margin: €11.8m (stable), margin rate 49.3% (+50bps).

Outlook and guidance

• On track to meet 2025 guidance: revenue growth in high teens, adjusted EBITDA growth in low twenties.

• 2024–2026: high-teens adjusted EBITDA CAGR, cash conversion ratio 70–75%, leverage ratio around 2x.

• Detection & Imaging growth expected to accelerate through 2025 as market headwinds subside.