Report
Barco Key question ahead: Is the order slowdown temporary?
Barco's FY25 results were broadly in line with market expectations, demonstrating the company's ability to grow sales and margins despite a challenging macro environment. However, the performance also revealed vulnerabilities—most notably a significant decline in order intake and a sharp reduction in the order book, both of which signal weakening forward demand and warrant close attention.Cinema was the strongest division, while Healthcare underperformed. EBITDA slightly exceeded expectations, primarily due to cost savings rather than operational leverage, as gross margins came in below forecasts. We hope Barco can demonstrate that these cost efficiencies are sustainable without undermining its long-term growth potential.
We updated our model (Hold; new € 13.2 Target Price vs. € 14 previously) as Barco's management expects both revenue and margin growth in FY26, with most progress weighted toward 2H26. Longer term, Barco reaffirmed its 2028 ambitions: €1.1bn in revenue, a 15% EBITDA margin, and a further increase in recurring revenue as the business continues to shift from Capex-driven to OpEx-driven models.
Underlying
Barco NV
Provider
KBC Securities
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Guy Sips
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