This article first appeared on GuruFocus .
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Revenue:Increased by 12% year-over-year in the first half of 2026, with Q2 revenue approximately 20% above the previous record quarter.
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Gross Margin:Group gross margin reached 47.1%, a 4.6 percentage point expansion compared to the first half of 2025.
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Adjusted EBITDA:Reached EUR18.4 million, with a margin of 22.4%, a 10.8 percentage point expansion year-over-year.
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Adjusted EBIT:Reached EUR14 million, with a margin of 17%, a 10.7 percentage point expansion year-over-year.
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Order Intake:Increased to EUR108.6 million in the first half of 2026, up from EUR43.6 million in the prior year.
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Order Backlog:Strong at EUR105 million as of mid-year.
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Segment Revenue (Clean Energy):Grew by 22.7% in the first six months, with significant impact from shipments to Ukraine of about EUR22 million.
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Segment Gross Margin (Clean Energy):Well above 50% at 52.6%.
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Segment Gross Margin (Clean Power Management):Slight drop to 28.3% due to lower revenue.
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Operating Cash Flow:EUR4.6 million, a significant improvement from the prior year.
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Cash Position:Freely available cash of EUR44 million, with a net cash position of EUR41.2 million at the end of the first half.
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Guidance:Revenue narrowed upward to EUR166 million to EUR175 million; adjusted EBITDA expected between EUR31.5 million and EUR34 million; adjusted EBIT expected between EUR21.5 million and EUR25.5 million.
Release Date: August 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record-breaking first half of 2026 with revenue up 12% year-over-year and Q2 revenue 20% above the previous record quarter.
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Adjusted EBITDA doubled and adjusted EBIT more than tripled year-over-year, driven by strong product mix and operating leverage.
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Order intake surged to EUR108.6 million, 2.5 times higher than last year, with a solid backlog of EUR105 million providing good visibility.
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Successful market entry into Ukraine with significant shipments (EUR22 million) and plans for training, localization, and expansion to other armed forces.
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Strategic acquisitions and partnerships (Siqens assets, General Dynamics collaboration) expand product portfolio and market reach, with new opportunities in defense and AI-based security systems.
Negative Points
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Clean Power Management segment underperformed due to softer demand from its largest customer and lower revenue, leading to higher unit costs and a drop in gross margin.
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US business lags in volume despite customer diversification, with intense competition and slower-than-expected scaling.
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Supply chain constraints for specific components could limit Q4 revenue potential, though guidance remains confident.
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Operating cash flow impacted by increased working capital, particularly higher accounts receivable (DSO at 139 days) due to strong end-of-quarter sales.
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Uncertainty around repeat Ukraine orders and 2027 outlook, with financing delays and need for further assessment in autumn.
Q & A Highlights
Q: What is the reason for the more conservative adjusted EBITDA guidance for H2 2026, given the remaining EUR20 million in Ukrainian order sales? A: CFO Daniel Saxena explained that the lower end of the guidance reflects potential expenses and uncertainties that may or may not occur in H2. This includes the impact of lower revenues from the Clean Power Management segment, which has higher production overhead, potential impairments on capitalized R&D expenses, higher IT spending related to the ERP system introduction in Q4, and investments in building up support and service functions in Ukraine.
Q: Do you foresee the large Ukrainian order being repeated for other armed forces in 2027? A: CEO Peter Podesser stated that the company is focused on creating a short- and long-term basis for repeating and perpetuating business in Ukraine by ensuring users can properly deploy the products. They are expanding their customer base within the armed forces and exploring repeat possibilities. While financing from Germany and Europe has been delayed due to leadership changes, the financial means are expected to be available in autumn. A clearer picture for 2027 is expected in the September-October timeframe.
Q: What is the revenue impact of supply chain constraints in Q4, and what is lacking? A: CEO Peter Podesser clarified that the constraints are not related to their own production capacity but to specific components for their products that are still in the order phase, with some deliveries expected by end of September not yet arrived. He confirmed that the current guidance is safe and that supply chain constraints are factored into the lower end of the forecast.
Q: Can we expect the rest of the Ukraine contract to be delivered in Q3? A: CEO Peter Podesser stated that due to the urgency on the customer side, they expect to execute on virtually most of the remaining contract by the end of September, with some residual revenues possibly in Q4. He confirmed a significant portion will be delivered in Q3, leading to another very strong quarter.
Q: You mentioned success in broadening the US customer base but lagging in volume. What hinders customers from ordering larger volumes? A: CEO Peter Podesser explained that while they have all top players in the CCTV market integrating their EFOY product, the US market is more competitive and head-to-head compared to Europe. Customers are fighting for the same projects, making them less aggressive in volume forecasts. While they had a head start with LiveView Technologies, others are catching up, which is slowing them down on an intermediate basis, but the growth potential remains significant.
Q: When do you expect further large orders from defense, be it from Ukraine or other armed forces, to gain visibility into 2027? A: CEO Peter Podesser noted a signaling effect from Ukraine, with armed forces from North America, Asia, and the Middle East observing and learning. He expects an impact on their business, with first OEM programs scaling geographically in Europe in 2027. They are also invited to the US for a development program for a new generation of portable systems, and see promising reinitiation of programs in India. Significant upside is also expected from the Middle East.
Q: Is the H2 guidance entirely based on backlog, and what is the current backlog expected to carry into next year? A: CEO Peter Podesser stated that about EUR25 million of revenue is expected to carry into 2027. The residual part needed for the midpoint of the guidance comes from the industrial fuel cell business, especially civilian security and CCTV, which has shorter order cycles of 8 to 12 weeks and is factored into the forecast.
Q: Do you expect the softness in the Clean Power Management segment to persist, and what is the timeline for new use cases like drone defense lasers? A: CEO Peter Podesser explained that the softness is due to a key customer's end markets, particularly semiconductors, not delivering the expected pickup. They maintain a conservative outlook for the year but see an uptick in forecasts towards year-end. For the defense laser business, they expect first shipments into programs by 2027, as the platform is industrially matured and ready for adaptation, with serious interest beyond the initial OEM partnership.
Q: What are your thoughts on gross margin development in Q3 and Q4? A: CFO Daniel Saxena stated that Q3 will see a very strong gross margin, likely around the level of Q2, due to the strong Ukraine deliveries. Q4 will still see a good gross margin, but it depends on what can be delivered and in which markets, primarily due to parts availability rather than order backlog. The range for Q4 is from good to strong.
Q: What is the expected revenue contribution from the adoption of the clean power supply platform for defense applications in the coming years? A: CEO Peter Podesser stated that on a midterm basis, they expect a lower double-digit business from this opportunity. However, procurement cycles are slow at the beginning and then scale. They are starting with a conservative approach for 2027 and will see how fast scaling goes, leveraging their proven dual-use product strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
