Frequentis (FQT) investor relations material

Market overview and growth drivers

• Operates in safety-critical infrastructure markets, serving over 550 governmental customers in 150 countries.

• Addressable market estimated at €4 billion out of a €14 billion total annual tender volume.

• Key growth drivers include increased government security spending, drone threats, rising air traffic, and technological advancements.

• NATO's push to raise defense spending and new airspace threats are boosting demand.

• Technological modernization is required as legacy systems cannot handle future air traffic growth.

Financial performance and growth

• Order intake rose by 35.6% and orders on hand increased by 23.0% in H1 2025, with revenues up 14.8% year-over-year, all from organic growth.

• Orders on hand reached €764m, providing a strong basis for future revenues.

• EBITDA for H1 2025 was €5.2m, with a net cash position of €68.3m and an equity ratio of 39.1%.

• Americas revenue share rose from 17% to 23% year-on-year, driven by U.S. programs.

• Revenue split remained stable: 70% Air Traffic Management (ATM), 30% Public Safety & Transport (PST).

Operational highlights and market developments

• Major new orders include digital air traffic control towers for the US Army in Germany and multi-domain communication systems for the Australian Defence Force.

• Public safety contracts include integrated control centres for German police and new communication solutions for Norwegian fire emergency call centres.

• Drone management and digitalisation projects are advancing, including automated drone operations for railways and military airspace integration.

• Mission Critical Services (MCX) are being trialed in four EU countries, with Frequentis leading one of the EUCCS consortia.

• Ongoing M&A activity has expanded the product and technology portfolio, with 10 acquisitions in six years.