Core Insights - Exosens reported a strong performance for the nine-month period ending September 30, 2025, with revenue growth of +23.2% year-over-year, driven by robust demand in defense markets [3][6][7] - The company is on track to meet its 2025 financial guidance, expecting high-teens revenue growth and low twenties adjusted EBITDA growth [2][24] Financial Performance - Total revenue for 9M 2025 reached €327.8 million, an increase of €61.6 million compared to 9M 2024, with a like-for-like growth of +15.1% [6][7] - Amplification segment revenue grew by +20.6% to €231.8 million, while Detection & Imaging segment revenue increased by +26.2% to €97.0 million [5][14] - Adjusted gross margin rose by +28.7% to €168.0 million, with a margin rate of 51.2%, reflecting strong performance in the Amplification segment [20][21] Strategic Initiatives - Exosens is expanding its production capacity by +40% by 2027, with a total investment of €37 million aimed at meeting increasing demand for night vision systems [10][11] - The company has made several strategic acquisitions, including NVLS and Phasics, to enhance its technological capabilities and expand its market presence [12][18] - The divestment of the Microwave Amplification business is expected to improve profitability and focus on higher-value activities [13][38] Market Trends - The defense sector continues to show strong momentum, particularly in night vision technologies, driven by geopolitical tensions and increased procurement by NATO members [9][15] - Emerging applications such as drone warfare and advanced imaging systems are creating significant growth opportunities for Exosens [3][15] - The company anticipates continued demand in the life sciences and industrial control markets, with signs of recovery in industrial investments [16][17]

Core Viewpoint - Exosens has signed an agreement to acquire Phasics, a leader in wave front sensing technology, to enhance its technology portfolio and provide innovative imaging solutions to customers [1][7]. Group 1: Acquisition Details - The acquisition of Phasics will allow Exosens to develop its multi-sensors approach and add new functionalities to its imaging business, maintaining its position at the cutting edge of technology [3]. - Phasics, founded in 2003, had sales of €8.5 million in 2024 and employs 40 people, recognized for its expertise in wave front sensing technology [4]. - The acquisition will enhance Exosens' product offerings in high-performance imaging solutions for defense, industrial control, and life sciences [7]. Group 2: Strategic Implications - The integration of Phasics is expected to accelerate its international growth by leveraging Exosens' established commercial network, particularly in instrumentation and semiconductor markets [7]. - Exosens continues to execute its bolt-on acquisition strategy, acquiring unique technology assets to reinforce its leadership across verticals and unlock value through global commercial reach and accelerated innovation [7]. Group 3: Company Background - Exosens is a high-tech company with over 85 years of experience in the innovation, development, manufacturing, and sale of high-end electro-optical technologies [6]. - The company operates on 11 sites in Europe and North America, employing over 1,800 people and is recognized as a major innovator in optoelectronics [6].

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]