Frequentis (FQT) H2 2024 earnings summary

Executive summary

• Achieved double-digit growth in order intake, orders on hand, and revenues for 2024, with revenues reaching EUR 480.3 million and EBIT up 20.5% to EUR 32.1 million.

• Order intake rose 15.7% to EUR 584 million; orders on hand exceeded EUR 700 million, providing strong visibility into 2025.

• EBIT margin increased to 6.7%, with net profit at EUR 23.5 million and EPS up 19.3% to EUR 1.66.

• Dividend of EUR 0.27 per share proposed, up 12.5% from the previous year.

• Growth driven by both Air Traffic Management (ATM) and Public Safety & Transport (PST) segments, with significant contract wins in Europe, UK, Malaysia, and Australia.

Financial highlights

• Revenues increased 12.4% year-over-year to EUR 480.3 million, marking the fourth consecutive year of double-digit growth.

• EBIT margin improved to 6.7%; EBITDA at EUR 54.1 million (+22.5%); net cash position at year-end was EUR 81.8 million, with an equity ratio of 44.3%.

• Book-to-bill ratio was 1.22; more than half of orders on hand expected to convert to revenue in 2025.

• Segment split: ATM contributed 70% of revenues, PST 30%; ATM accounted for 68% of order intake and 64% of orders on hand.

• Americas showed fastest regional growth at nearly 30%; Europe remained the largest market at 62–66% of revenues.

Outlook and guidance

• Targeting further order intake growth and approximately 10% revenue growth in 2025, with EBIT margin guidance of 6.5%–7%.

• Over EUR 380 million of orders on hand expected to convert to revenue in 2025; remaining orders to be realized in 2026 and beyond.

• Capital expenditures expected at EUR 12 million; R&D expenses to remain stable at EUR 30 million.

• Guidance subject to inflation, order/revenue timing, tariffs, and protectionist measures.