Frequentis (FQT) Austria on Air Conference summary

Business Overview and Market Trends

• Specializes in safety-critical control center applications for air traffic, military, public safety, and maritime, serving mainly government clients globally.

• Global market for safety-critical control rooms estimated at €14 billion annually, with drivers including increased security needs, rising mobility, and technological change.

• Addressable market currently €3.8 billion, with efforts to expand through innovation and acquisitions.

• Market growth is estimated at 4-5% per year, while the group achieved 9.6% average revenue growth over five years.

• Revenue split remained stable: 70% from Air Traffic Management, 30% from Public Safety & Transport.

Financial Performance and Contract Highlights

• Order intake rose by 35.6% and orders on hand increased by 23.0% in H1 2025, reaching €309.0m and €763.8m, respectively.

• Revenues grew 14.8% year-over-year to €236.8m, with growth entirely organic.

• Double-digit revenue growth and a more balanced geographic order allocation, with U.S. share rising from 17% to 23%.

• Secured major contracts in public safety (e.g., Thuringian State Police, Germany) and air traffic management (e.g., U.S. Department of Defense, FAA digital tower program).

• Maintains a strong equity ratio and net cash position, with net cash at €68.3m and equity ratio at 39.1%.

Strategic Initiatives and Innovation

• Investments in M&A and R&D target expansion into new segments, such as drone management and 5G MCX solutions.

• R&D investment is about 6% of revenues, with a similar amount funded by customers and project funds; annual R&D spend of €30 million is fully expensed.

• M&A strategy has led to 10 acquisitions in six years, expanding the product and technology portfolio.

• Focus areas include drone management, 5G-based communications, AI assistance, cloud solutions, and SaaS.

• Technological shifts, such as migration from TETRA to 5G/MCX and adoption of cloud and service-oriented architectures, are shaping future offerings.