Exosens delivers strong revenue growth in Q1 2025 in a dynamic defense market environment; Fully on track to 2025 guidance

Core Insights - Exosens reported strong revenue growth in Q1 2025, achieving €104.9 million, a 21.1% increase compared to Q1 2024, driven by robust demand in Defense markets [7][8][10] - The company is on track to meet its 2025 guidance, expecting high-teens revenue growth and low twenties adjusted EBITDA growth [3][23] Financial Performance - Total revenue for Q1 2025 was €104.9 million, up €18.3 million from Q1 2024, with a like-for-like growth of 18.0% [6][7] - Amplification revenue reached €81.7 million, reflecting a significant growth of 29.1% year-over-year, primarily due to increased demand for night vision applications [9][10] - Detection & Imaging revenue slightly declined to €24.0 million, down 1.0% compared to Q1 2024, impacted by temporary challenges in the Telops segment [11][12] Margin Analysis - Adjusted gross margin increased by 28.1% to €52.6 million in Q1 2025, with a margin rate of 50.1%, up 270 basis points from the previous year [8][17] - The Amplification segment's adjusted gross margin grew by 39.5% to €40.8 million, with a margin rate of 49.9% [18] - Detection & Imaging segment's adjusted gross margin remained stable at €11.8 million, with a margin rate improvement to 49.3% [19] Market Dynamics - The demand for Exosens' products is bolstered by increasing geopolitical tensions and sustained investments from NATO and Tier-1 allies [4][10] - The company anticipates continued growth in its Defense-related activities, with expectations for the Detection & Imaging segment to recover and accelerate throughout 2025 [12][23] Strategic Developments - Exosens completed the acquisition of Noxant, enhancing its capabilities in high-performance cooled infrared imaging, particularly for Defense and Surveillance applications [13][14] - The integration of Noxant is underway, expected to be finalized by the end of June 2025 [14] Governance and Shareholder Updates - Bpifrance Investissement is proposed for appointment to the Board of Directors, following an increase in its stake to 7.2% of Exosens' share capital [20][21] - The company maintains a leverage ratio target of around 2x while pursuing its growth strategy [24]