EVS Broadcast Equipment 1Q slightly below expectations but EVS remains cautiously optimistic

EVS highlighted 1Q25 was slightly below its own expectations, primarily due to the deferral of certain customer deliveries from March to April. EVS stressed that this timing-related impact does not alter their underlying business momentum. EVS indicated that customer demand remains robust across all regions, providing continued confidence in its FY25 guidance. about achieving its FY25 revenue objectives though, given the macro-economic tensions, the tariff discussions and the weakening dollar.
As some customers delaying their shipments, 1Q25 was not demonstrating EVS' own expected growth. As the end 1Q25 secured revenue (this includes the already recognized revenue as well as open orders on hand that will be recognized as revenue in FY25) was €125.1m (+ €4.7m y/y excl. BER), EVS sustained its revenue guidance of €195-210m (KBCSe € 201m).
We welcome EVS indicated that OpEx was under control. Nevertheless we will update our model as -based on the 1Q25 results and in line with its FY25 revenue guidance- EVS now issues a FY25 EBIT guidance of € 35.0m to–€43.0m while we were at €43.6m. We maintain our Buy rating and € 46 Target Price.