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2025/26 will primarily bring margin improvements - medium-term growth path certainly intact

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As previously announced, CEOTRONICS slightly exceeded its raised sales forecast for 2024/25. As the annual report shows, the scaling was significantly stronger than we had expected. The EBIT margin reached 14%, EPS €0.60 (23/24: €0.18), more than tripled, both exceeding our expectations raised in June of 12.5% and €0.57, respectively. The 2025/26 fiscal year will show only slight sales growth, with margins continuing to rise. From 2026/27 onwards – benefiting from the political framework (including ReArm Europe, German special funds for the Bundeswehr and infrastructure, and the German economy picking up from 2026) – sales (particularly in relation to external security) are likely to continue to rise. With an EV/sales ratio of 1.8, CEOTRONICS remains inexpensive for a company with a high proportion of defence business.
The equal weighting of our updated DCF and peer group analysis results in a Fair Value of €18.24.