Frequentis (FQT) Status Update summary

Financial performance highlights

• 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 driven by organic growth.

• Orders on hand reached €764m, providing a strong revenue base for the full year and beyond.

• Net cash stood at €68.3m, with an equity ratio of 39.1%.

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

• Strong revenue growth in the Americas, with Europe still the largest market.

Operational and market developments

• Significant new orders in both ATM and PST, including US Department of Defense digital tower and major public safety contracts in Germany, Norway, UK, and Italy.

• ATM and PST order intake and orders on hand are now more balanced, reflecting diversification.

• Continued investment in R&D (about 6% of revenues), with focus on innovations like drone management, 5G comms, AI assistance, and cloud solutions.

• Ongoing M&A strategy has expanded the product and technology portfolio, with 10 acquisitions in 6 years.

Strategic outlook and guidance

• Management targets low double-digit percentage growth in order intake and at least 10% revenue growth for 2025.

• EBIT margin is expected to be around 6.5–7.0%, with capex of about €12m and R&D expenses at 2024 levels.

• Financial policy aims to maintain net cash at a minimum of 10% of group revenues and an equity ratio above 35%.

• Market growth is estimated at 4–5% per year, with the group outpacing the market at 9.6% average revenue growth over five years.