Secunet Security Networks (YSN) Q1 2025 earnings summary

Executive summary

• Group revenue increased by 35.9% year-over-year in Q1 2025, marking a strong start to the year.

• EBIT and EBITDA margins turned positive in Q1, with EBIT improving to €1.8 million from -€5.6 million and EBITDA margin rising to 8.4% from -2.6%.

• Both public and business sectors contributed to growth, with notable expansion in Germany and international markets, including projects with EU and NATO.

• Order backlog remains high and stable, with some orders received earlier than expected, supporting a solid outlook.

• The annual forecast for 2025 is confirmed, despite uncertainties related to the German government budget.

Financial highlights

• Group sales rose to €78.3 million in Q1 2025, with significant year-over-year growth, especially in the public sector.

• EBIT margin reached 2.3% (up from -9.7%), and EBITDA margin increased to 8.4% from -2.6%.

• Cost of sales increased in line with revenue; other costs remained on budget and comparable to last year.

• Cash and cash equivalents at quarter-end were €53.2 million, up from €35.9 million a year earlier.

• Cash balances remain stable, with a planned reduction due to upcoming dividend payments.

Outlook and guidance

• Annual revenue forecast of €425 million is confirmed, with targeted EBITDA margin of 14.5%-16.5% and EBIT margin of 9.5%-11.5%.

• Dividend proposal of €2.73 per share for the annual shareholder meeting.

• No plans to adjust margin guidance despite strong Q1; any excess EBIT would be reinvested, mainly in cloud and post-quantum projects.

• Strategic focus on sustainable, profitable growth, with continued investment in cloud infrastructure and post-quantum cryptography.

• Guidance assumes stable industry conditions and public sector investment behavior.