Secunet Security Networks (YSN) Q4 2024 earnings summary

Executive summary

• Achieved record sales for the eleventh consecutive year, reaching €406.4 million, with strong growth in public sector (up 7%) and international business (up 14%).

• EBIT reached €42.5 million, with a margin of 10.5%, and a dividend of €2.73 per share was proposed.

• Significant product milestones included SINA Cloud approval for classified information, SINA Mobile for Android, and Highspeedkonnektor 2.0 in eHealth.

• Workforce grew to over 1,000 employees, with continued selective hiring to support new markets.

• First approval of quantum-resistant encryption products for "SECRET" classification.

Financial highlights

• Sales revenue reached €406.4 million, surpassing €400 million for the first time, with a 16% CAGR over the last 10 years.

• EBIT at €42.5 million, supporting a dividend per share of €2.73 and a payout ratio of 50%.

• Strong cash inflow, with cash and cash equivalents rising 39.8% to €57.7 million and robust cash position.

• Equity ratio stable at 41.9%, with no bank liabilities.

• International sales increased to €40.1 million, with additional indirect international sales via partners.

Outlook and guidance

• Revenue guidance for 2025 set at €400–425 million, with an EBIT margin target of 9.5–11.5%.

• Order backlog exceeds €200 million, supporting future growth.

• Continued focus on R&D, portfolio enhancements, and expansion in cloud, eHealth, and international markets.

• Medium-term EBIT margin target of 15%, with 12% achievable as early as next year depending on market developments.

• Dividend per share proposed at €2.73, maintaining a 50% payout ratio.