Secunet Security Networks (YSN) Q2 2025 earnings summary

Executive summary

• Achieved strong revenue growth of 19% year-over-year in H1 2025, reaching €171.7 million, with EBIT surging by 414% to €7.2 million and positive developments in both national and international markets.

• Strategy focuses on security, sovereignty, and customer needs, with expansion into cloud-native platforms, internationalization, and defense and space sectors as key growth areas.

• High order backlog maintained at €192.5 million despite a 6% decrease from year-end 2024, reflecting strong H1 and late German federal budget; most orders expected in Q4.

• Growth observed in both public and business sectors, with public sector accounting for 87%-89% of revenue.

• CEO transition: Marc-Julian Siewert appointed as CEO effective July 1, 2025, bringing strategic and international experience.

Financial highlights

• Revenue increased from €144.3 million in H1 2024 to €171.7 million in H1 2025, driven by strong Q1 and growth in all segments.

• EBIT rose from €1.4 million to €7.2 million year-over-year, outpacing revenue growth due to fixed cost leverage and favorable product mix.

• International revenue grew by 40%, with foreign sales share rising from 9% to 11%.

• Cash and cash equivalents were €25.3 million as of June 30, 2025, down from €57.7 million at year-end 2024, reflecting dividend payments and procurement.

• Operating cash flow impacted by increased inventories and dividend payment; equity ratio at 40.3%.

Outlook and guidance

• 2025 outlook confirmed: revenue of approximately €425 million, EBIT margin of 9.5%-11.5%, EBITDA margin of 14.5%-16.5%, and targeted dividend per share of €2.73.

• Q4 anticipated to be the strongest quarter due to public sector contract seasonality and late federal budget approval.

• Spending momentum from government and defense sectors expected to last through the decade, with some potential shifting to 2026 and beyond.

• Strategic focus on public sector innovation, defense, cloud, and international expansion.