Secunet Security Networks (YSN) Q2 2025 earnings summary

Executive summary

• Achieved strong sales and EBIT growth in H1 2025, with sales revenue rising 19% year-over-year to €171.7 million, driven by strong Q1 deliveries and positive developments in both national and international markets.

• EBIT increased to €7.2 million from €1.4 million, with EBIT margin improving to 4.2% from 1.0% year-over-year, outpacing revenue growth due to fixed cost leverage and favorable product mix.

• Net income for H1 2025 reached €5.0 million, up from €1.0 million in H1 2024; EPS rose to €0.77 from €0.16.

• Strategy focuses on security, sovereignty, and customer needs, with expansion into cloud-native platforms and internationalization; defense and space sectors identified as key growth areas.

• Public sector accounted for 87%-89% of sales, with significant growth in both public and business segments.

Financial highlights

• Revenue for H1 2025 significantly higher than H1 2024, with EBITDA increasing 74% to €16.7 million year-over-year.

• Cash flow from operating activities was -€9.0 million, mainly due to inventory build-up; cash and cash equivalents decreased to €25.3 million, reflecting dividend payments and procurement.

• Equity ratio declined to 40.3% from 41.9% at year-end 2024.

• Order book stood at €192.5 million as of June 30, 2025, compared to €205.3 million a year earlier.

• International sales share rose from 9% to 11% on a higher revenue base.

Outlook and guidance

• 2025 outlook confirmed: revenue of approximately €425 million, EBIT margin of 9.5%-11.5%, EBITDA margin of 14.5%-16.5%, and targeted dividend per share of €2.73.

• Q4 anticipated to be the strongest quarter due to public sector contract seasonality; most orders expected in Q4.

• Spending momentum from government and defense sectors expected to last through the decade, with peak timing uncertain.

• Special funds and new federal budget to drive growth, with some potential shifting to 2026 and beyond due to late budget approval.