Exosens exceeds 2025 guidance, driven by strong Defense momentum in night vision and digital imaging; New mid-term outlook: Accelerating our profitable growth path

Core Insights - Exosens has exceeded its 2025 revenue guidance with a strong growth of 22.1%, reaching €468.2 million, primarily driven by robust demand in the Defense and Surveillance sectors, which accounted for 75% of total revenue [4][13] - The company has demonstrated significant profitability improvements, with adjusted EBITDA increasing by 26.6% to €151.6 million, achieving a sector-leading margin of 32.4% [4][35] - Exosens is targeting continued double-digit growth in 2026, with projected revenue between €520 million and €540 million and adjusted EBITDA between €168 million and €178 million [46][52] Financial Performance - Revenue for 2025 was €468.2 million, up from €383.4 million in 2024, reflecting a 22.1% increase [10][13] - Adjusted gross margin rose to €234.0 million, a 24.2% increase from €188.4 million in 2024, with the margin percentage improving to 50.0% [31][10] - Net profit from continued operations more than doubled to €70.2 million, a 106.0% increase compared to €34.1 million in 2024 [38][39] Business Segments - Amplification revenue reached €319.2 million, representing 68% of total sales, with an 18.4% growth driven by increased demand for night vision applications [14][13] - Detection & Imaging revenue grew by 28.0% to €150.5 million, supported by acquisitions and strong performance in Defense and Surveillance markets [21][13] - The company completed three acquisitions in 2025, enhancing its capabilities in Surveillance and expanding its technology portfolio [7][19] Market Dynamics - The Defense sector is experiencing heightened demand for night vision technologies, particularly due to geopolitical tensions and evolving military requirements [15][16] - Exosens has secured significant contracts, including a €500 million deal with OCCAR for supplying night vision tubes to the German armed forces [16][7] - The company is investing €37 million to expand production capacity by 40% by 2027, targeting growth in both European and U.S. markets [17][46] Innovation and R&D - Exosens launched a breakthrough 5G image intensifier tube, improving performance benchmarks in night vision technology [18][7] - R&D expenses increased by 19.8% to €35.7 million, reflecting the company's commitment to innovation in imaging technologies [41][10] - The company is focused on developing advanced imaging systems for various sectors, including Defense, Industrial Control, Life Sciences, and Nuclear [41][7] Strategic Outlook - Exosens aims for medium-term organic revenue growth in the mid-teens and adjusted EBITDA growth above 15% [48][47] - The company plans to maintain a disciplined approach to capital allocation, focusing on long-term value creation through targeted acquisitions [50][51] - A proposed cash dividend of €0.30 per share for the 2025 fiscal year reflects the company's commitment to returning value to shareholders [45][51]