Frequentis (FQT) Austrian Select Conference summary

Business and Financial Performance

• Achieved double-digit revenue growth for the fifth consecutive year, with a 21% increase in 2025 and a four-year CAGR of 15%.

• Order intake rose by 20.8%, and orders on hand reached €794.9m, ensuring strong capacity utilization into 2026.

• EBIT margin improved to 8.1%, with EBIT up 45.7% and net cash at €104.7m, mostly from customer advances.

• Revenue growth was entirely organic, with Air Traffic Management accounting for 69-70% and Public Safety & Transport for 30-31% of revenue.

• Americas region saw notable revenue expansion, now representing 27% of total revenues, and defense contributed 17-18% of total revenues in 2025.

Strategic Initiatives and Innovation

• Transitioning Air Traffic Management from hardware-centric to software-centric, aiming for virtualized, data center-based solutions.

• Focused on innovations in 5G-based critical communications, drone management, AI assistance, and cloud solutions.

• About 6% of revenues allocated to company-funded R&D, with an additional 6% from customers and project funds.

• Mission-critical services (MCX) rollout in the UK for 300,000 emergency service personnel, enhancing real-time safety.

• Offering advanced drone airspace management and remote digital tower solutions, with exclusive FAA certification pending and the European drone market expected to exceed €10bn by 2030.

Market Drivers and Customer Trends

• Over 90% of customers are government entities, providing stability and low cyclical exposure.

• Growth driven by rising security needs, increased mobility, and technological advancements.

• Orders on hand and order intake are well-diversified between ATM and PST, with a slight increase in PST share.

• Customers are increasing investments in infrastructure and defense, driving demand for safety-critical applications.

• Global presence with 2,600 employees across 63 nationalities and operations in over 150 countries.