Basler (BSL) Q4 2025 earnings summary

Executive summary

• Achieved strong financial recovery with revenue of EUR 224.5 million, at the upper end of guidance, and a return to profitability after two loss-making years.

• Bookings and billings grew 22–23% year-over-year, significantly outperforming the market, with strong order momentum in Q4 and notable growth in the US and China; Europe began to recover in the second half.

• Gross margin improved to 47.4% (from 45.1%), despite significant FX headwinds.

• Free cash flow reached EUR 18.5 million, supported by inventory reduction and up from EUR 1.4 million prior year.

• Sustainability progress included a 15% reduction in carbon footprint (location-based) and 63% (market-based) since 2022, with new PV system installation.

• New management team effective January 2026, with defined CEO, CFO, and CTO roles.

Financial highlights

• Revenue: EUR 224.5 million, up 22% year-over-year; China contributed 26% (up from 23%).

• Gross profit rose 28% to EUR 106.4 million; gross margin improved by 2.3 percentage points to 47.4%.

• EBIT margin: 7.2%, at the high end of guidance; EBT margin 7.2%, EBIT margin 7.9%.

• Free cash flow: EUR 18.5 million, above target, despite higher receivables.

• Net income was EUR 11.6 million, compared to a EUR 14.2 million loss in the prior year; EPS improved to EUR 0.38 from -EUR 0.46.

Outlook and guidance

• 2026 revenue guidance: EUR 232–257 million; EBIT margin expected between 6.5% and 10%.

• Q1 2026 expected to start strong, with EBIT margin above guidance corridor.

• Midterm (2028) target: EUR 275 million revenue, >13% EBIT margin, ~15% CAGR, and 70% cash conversion rate.

• Guidance reflects geopolitical risks, currency volatility, and cost of living adjustments.