Frequentis (FQT) Austria on Air Conference summary

Business Performance and Market Overview

• Order intake rose by 35.6% to €309.0m and orders on hand increased by 23.0% to €763.8m in H1 2025, with revenues up 14.8% year-over-year to €236.8m, all organic growth.

• Addressable market is estimated at EUR 14 billion annually, with the current portfolio covering EUR 3.8 billion; ongoing investments in M&A and R&D aim to expand this share.

• Revenue split remains 70% ATM (civil/defense) and 30% PST, with Americas share rising to 23% and European share at 61%.

• Over 90% of customers are government entities, with strong growth in the Americas region and major contracts secured in public safety and air traffic management.

• Order intake and orders on hand shifted toward PST, now 48% and 43% respectively, up from 36% in H1 2024.

Technology and Innovation

• Investments focus on drone management systems (UTM), 5G MCX solutions, AI assistance, cloud solutions, and SaaS to address evolving security and communication needs.

• UTM solutions aggregate multi-sensor data to identify and classify drones, supporting countermeasures; currently deployed in the Baltics with expansion expected.

• 5G MCX is positioned to replace aging TETRA and GSM-R networks, enabling secure, high-bandwidth data transfer for public safety and other sectors.

• R&D spending is about 6% of revenues (EUR 30 million annually), fully expensed, with a similar amount funded by customers and project funds.

• M&A strategy has led to 10 acquisitions in six years, expanding the product and technology portfolio.

Strategic Outlook and Project Execution

• Orders on hand of €764m provide a strong basis for full-year 2025 and beyond, with management targeting low double-digit percentage growth in order intake and at least 10% revenue growth for 2025.

• EBIT margin is expected at 6.5%-7.0%, with strong pipeline visibility through 2026.

• Seasonality impacts project closures, with most margins realized in Q4 due to public sector patterns.

• Large-scale projects, such as the U.K. emergency services contract, are expected to complete in three to four years; MCX opportunities are being pursued in Europe and Asia.

• Capex is about €12m and R&D expenses are expected to remain at 2024 levels.