Frequentis (FQT) H2 2025 earnings summary

Executive summary

• Achieved double-digit growth in order intake (up 17% to EUR 680 million) and revenues (up 21% to EUR 580.1 million) for 2025, with entirely organic growth and strong capacity utilisation.

• EBIT reached EUR 46.8 million (8.1% margin), supported by an EUR 8 million one-off claim settlement in Public Safety & Transport.

• Net cash position at year-end was EUR 104.7 million, including EUR 87 million in customer prepayments.

• Orders on hand reached nearly EUR 800 million, ensuring strong capacity utilisation for the coming year.

• Global headcount increased by over 200, reaching approximately 2,600 employees.

Financial highlights

• Revenues grew 20.8% year-over-year to EUR 580.1 million; EBIT rose 45.7% to EUR 46.8 million; profit for the year increased to EUR 33.7 million.

• EBITDA reached EUR 66.9 million (margin 11.5%), and EPS increased to EUR 2.13.

• Dividend of EUR 0.30 per share proposed for FY2025, up 11.1%.

• Equity ratio at 38.6%, with total assets up 29% to EUR 509.3 million.

• Net working capital at 21.8% of LTM revenues, driven by higher inventories and contract liabilities.

Outlook and guidance

• Targeting around 10% revenue growth and EBIT margin of about 7% for 2026.

• CapEx planned at EUR 15 million; R&D expenses to remain at about 6% of revenues, with a long-term goal to reduce to 5%.

• Guidance subject to risks from inflation, IT hardware shortages, protectionist measures, and geopolitical tensions.

• Conservative outlook due to supply chain uncertainties and hardware supply constraints.

• Orders on hand at year-end 2025 stand at EUR 795 million, supporting future growth.