EVS SA (formerly EVS Broadcast Equipment SA)

Income statement

Sources and notes:

• FY2024–FY2025 figures come from the FY2025 results PR, with FY2024 restated.

• FY2021–FY2023 figures come from TipRanks except FY2023 EBIT. The company's FY2023 PR states EUR 41.1M; TipRanks shows EUR 41.45M.

• FY2024 and FY2025 EBITDA are calculated as EBIT plus depreciation and write-offs from the cash-flow statement (FY2024: 13.1; FY2025: 13.6). FY2021–FY2023 EBITDA is from TipRanks.

• FY2021 growth is measured against FY2020 revenue of EUR 88.1M (TipRanks).

Margins (%)

Revenue CAGR FY2021–FY2025: 10.9% (EUR 137.6M to EUR 208.1M).

Management-cited CAGR since 2019: more than 12% (FY2025 PR, CEO comment).

Half-year income statement (latest periods)

Source: H1 2026 PR: The 1H25 opex figure is derived from the stated +12.3% growth to EUR 56.9M. Investing.com's slide summary cites EUR 57.8M; the company PR figure is used here.

Cost structure (FY2024–FY2025)

FY2025 tax included a EUR 1.2M prior-year catch-up linked to a FY2023 assessment. The normalised rate was 7.9%. EVS benefits from Belgium's Innovation Income Deduction (IID), which was also cited for the lower H1 2026 tax charge of EUR 0.7M.

Balance sheet

Notes:

• FY2024 is the adjusted comparative. FY2023 equity is the restated 1 January 2024 opening figure (reported before restatement: EUR 191.3M). FY2023 cash is the 1 January 2024 opening cash in the FY2024 cash-flow statement.

• FY2024 WCR is derived from the stated +11.7% increase.

• Financial debt consists almost entirely of IFRS 16 leases. The last bank-loan instalment (EUR 0.56M) was repaid in June 2025, when the Axon-related facilities expired.

• Equity represented 72% of total assets at end-2025.

Cash flow

H1 2026 net cash from operating activities was EUR 17.0M, compared with an outflow of EUR 0.5M in H1 2025 (H1 2026 PR).

Ratios

All ratios are analyst calculations from the FY2025 PR figures. NOPAT uses the effective tax rate. DSO excludes EUR 15.0M of non-current trade receivables (FY2025); including them would push DSO to about 170 days.

Commentary on trends, inflections and drivers

Revenue. Growth was driven by three engines.

LAB expansion: LAB revenue grew 17.3% in FY2025 to EUR 122.2M, with record LAB order intake in Q1 2026.

North America "double down": Americas revenue grew 24.4% in FY2025 (29.8% at constant currency), and US revenue rose from EUR 53.6M to EUR 70.9M.

Acquisitions: Axon (2020), MOG (2024) and T-Motion (Q4 2025) all added revenue. Telemetrics alone would have added EUR 12.5M of revenue on a full-year basis.

The "even-year/odd-year" pattern linked to BER has been progressively neutralised. FY2023 and FY2025, both odd years, still set records. The key FY2026 inflection is negative. H1 2026 was a record at EUR 107.2M, but September order intake collapsed. About 25% of the expected Q4 pipeline slipped into 2027 and some opportunities were cancelled. This forced guidance down to EUR 190–205M, implying -1% to +6% versus FY2025 despite roughly EUR 11M of BER and a full year of T-Motion. On an organic, ex-BER basis, the implied figure is a decline.

Gross margin. Gross margin peaked at 72.3% in FY2024. It declined to 70.8% in FY2025, of which 0.6 points came from T-Motion integration and the rest from tariff costs (EUR 2.1M of tariffs added to the cost base). It then fell to 68.5% in H1 2026, driven by T-Motion consolidation, adverse EUR/USD (about half the decline), price pressure on large trade-in and upgrade deals, and higher operating costs booked in cost of sales. A new price list was introduced in May 2026 to offset component and RAM inflation.

Operating leverage. Opex grew 7.0% in FY2025 and 12.3% in H1 2026 (6% excluding T-Motion), with average FTE up 9%. EBIT margin compressed from 27.0% (FY2021) to 20.8% (FY2025) and 14.6% (H1 2026). Management launched a cost-containment plan in August 2026, halting all non-business-critical spending, with full effect expected in FY2027. Third-party analysts (Test-Achats Invest) estimate the FY2026 EBIT margin could fall to about 12% after the revenue cut. This is an external estimate, not company guidance.

Net profit. Net profit has been flattered by a low tax rate (IID regime; 6.8–10.6% effective) and FX treasury gains. H1 2026 net profit rose 24.4% while EBIT rose only 5.5%, owing to a EUR 1.8M improvement in the financial result and lower tax.

Cash. FY2025 OCF fell 57% to EUR 27.7M as trade receivables rose EUR 25.5M on heavy Q4 deliveries in North America. The large multi-year "Big Tech" contract receivable profile and conversion differences also weighed. H1 2026 showed recovery to EUR 17.0M OCF. The working-capital burden is structurally high, with WCR at 49% of sales at end-2025 (42% in FY2024).

Balance sheet. The balance sheet is fortress-like: EUR 58.4M net cash at end-2025 and no bank debt. Total equity is EUR 232.6M, or about EUR 17.3 per outstanding share. This is close to the share price after the October 2026 crash, on a book-value basis.

Management guidance (as of 19 October 2026)

Consensus before the warning: analysts forecast about 11% revenue growth for FY2026 (Investing.com, August 2026), a figure now superseded.

Test-Achats estimates: before the warning, FY2026 EPS of about EUR 2.95 at the guidance midpoint; after it, an EBIT margin of about 12%. These are external estimates.

Bull case

1. Timing, not demand. Management says about 25% of the Q4 pipeline moved to 2027 rather than being lost, and that most opportunities are still pursued. Together with a long-term order book up EUR 22.2M year-to-date and a pipeline about 20% higher, FY2027 could rebound sharply, helped by the full-year cost plan.

2. Valuation floor. At about 3.5x TTM EV/EBITDA, about 1.1x book, a 6% dividend yield and EUR 58M net cash with no debt, the market is pricing EVS as structurally impaired despite a 70%+ gross-margin franchise and ROIC above 20% in FY2025.

3. Ecosystem proof points. The FIFA World Cup 2026 VIA MAP deployment, Choreon's award and LAB record order intake show that the portfolio broadening (MediaInfra, MAM, robotics, digital publishing) is gaining traction in larger, stickier deals.

Bear case

1. Structural deceleration. Strip out BER (about EUR 11M) and T-Motion (about EUR 12–15M annualised) and the revised guidance implies organic revenue declining in FY2026, ending the base-growth narrative.

2. Margin compression is not cyclical. Gross margin fell 410bp in H1 2026 and opex rose 12%. T-Motion dilution, trade-in pricing pressure, FX and component inflation could leave EBIT margins in the low-to-mid teens even after cost cuts.

3. Visibility and credibility deficit. A back-end-loaded model, the 2025 order-book restatement, guidance confirmed in August and cut in October, and CFO turnover may keep the shares on a de-rated multiple until several quarters of delivery.

Key catalysts and monitorables (next 12 months)

Analyst verdict

EVS enters late 2026 as a high-quality niche franchise facing its first genuine earnings reset of the PLAYForward era. The long-run record is strong. Revenue compounded at about 11% from FY2021 to FY2025 to a record EUR 208.1M. Gross margins stayed near 70%, the balance sheet carries EUR 58M of net cash and no bank debt, and the company has broadened from replay into infrastructure, content management, AI and robotics. Its technology remained the operational backbone of both 2026 mega-events, and VIA MAP's role at the FIFA World Cup is a credible proof point for the digital-publishing adjacency.

The 7 October 2026 profit warning, however, exposes three structural fragilities that the market had underweighted. First, order intake is lumpy and back-end-loaded, so a single weak month (September) can derail a year. Second, margin compression is multi-causal: T-Motion mix, trade-in pricing, FX, opex growth and component inflation. Third, non-BER organic growth now appears to have stalled in 2026. The CFO transition and the 2025 order-book restatement add to the credibility gap.

The equity has repriced brutally, falling 47% year-to-date to about 1.1x book, roughly 3.5x trailing EV/EBITDA and a 6% yield. That valuation already discounts a materially lower earnings base, and the net-cash balance sheet sharply limits downside risk to the franchise itself. The investment debate therefore hinges on whether the slipped pipeline converts in H1 2027 and whether the cost plan restores EBIT margins toward 18–20% without BER support.

Our stance is cautiously constructive on a 12–24 month view, but not before evidence. The 17 November 2026 trading update, specifically the new EBIT guidance, Q3 order intake and secured-revenue coverage for 2027, is the decisive near-term test. Investors should demand proof of order conversion before underwriting a re-rating; until then, the dividend and balance sheet provide support, not upside.