Exosens delivers strong H1 2025 performance in a highly-dynamic Defense market; Fully on track to 2025 guidance

Core Insights - Exosens reported strong performance in H1 2025, achieving a revenue growth of +20.1% year-on-year, driven by robust demand in the Defense sector [3][5][4] - The company is on track to meet its 2025 guidance, expecting continued revenue growth in the high-teens and adjusted EBITDA growth in the low twenties [2][28] - Strategic acquisitions of Noxant and NVLS are expected to enhance Exosens' product offerings and innovation capabilities in Defense applications [5][10][15] Financial Performance - Revenue for H1 2025 reached €224.5 million, up from €186.9 million in H1 2024, marking a +20.1% increase [4][5] - Adjusted EBITDA increased by +23.8% to €69.5 million, with an adjusted EBITDA margin of 30.9%, up from 30.0% in H1 2024 [21][22] - Net profit surged to €27.9 million in H1 2025, compared to €2.9 million in H1 2024, reflecting a significant improvement in profitability [23][24] Segment Performance - Amplification segment revenue grew by +17.6% to €162.9 million, driven by increased demand for night vision applications [7][5] - Detection & Imaging segment revenue rose by +23.6% to €62.3 million, with a solid recovery in Q2 2025 after a challenging Q1 [12][5] - Adjusted gross margin improved to €111.5 million, representing a +22.3% increase compared to H1 2024, with a margin rate of 49.6% [16][20] Market Dynamics - The Defense market continues to show strong momentum, particularly in areas such as drone warfare and advanced night vision technologies [3][8] - Exosens is positioned as a key supplier of high-performance image intensifier tubes to NATO armies and Tier-1 allies, with increasing procurement of night vision systems [8][9] - The company is executing a €20 million investment plan to expand production capacity in response to growing global demand [9][26] Strategic Initiatives - Exosens is assessing further capacity increases to meet accelerating demand in the Defense sector [3][9] - The company plans to maintain a leverage ratio around 2x while pursuing selective external growth strategies [29][27] - Continued investment in R&D, totaling €17.0 million in H1 2025, aims to drive innovation in next-generation technologies [25][26]