EQS-News: Digitalisation specialist proves resilience in turbulent times

init continues to grow steadily in the third quarter

• Revenue up 34 per cent – EBIT rises by as much as 73 per cent
• Outlook for 2025 financial year confirmed: revenue of EUR 340 million to EUR 370 million and EBIT between EUR 32 million and EUR 35 million

Following the third quarter, init Innovation in Traffic Systems SE (ISIN DE0005759807) remains on track to meet its growth targets for 2025. Despite the challenging global economic climate, init recorded revenue growth of almost 34 per cent in the third quarter and increased its operating profit (EBIT) to EUR 8.7 million. "In view of the general economic climate, the development of earnings and cash flow from operating activities is particularly encouraging, with the latter more than quadrupling to over EUR 33 million in the first nine months of the financial year compared to the previous year," the Management Board said in its quarterly review. Despite global uncertainties, the Management Board therefore continues to expect to achieve the annual targets raised in July.

In the third quarter of 2025, the global economy was burdened by geopolitical conflicts, protectionism, and climate disasters. "In this environment, init’s business model has proven to be robust. Our global, integrated and diversified approach clearly leads to a high degree of resilience. Some slight weaknesses in individual business activities were offset by growth in major projects, particularly in North America. To further increase this resilience and improve long-term profitability, we are currently implementing additional structural and process improvements," said the Management Board.

According to the latest available figures, the init group generated revenues of EUR 85.1 million in the third quarter of 2025 (Q3 2024: EUR 63.6m). It should be noted that the third quarter of the previous year only included a proportion of the revenues of the DILAX group, which was acquired on 6 September 2024. Even without this consolidation effect, however, revenues would have increased by 29.7 per cent. At EUR 226.9 million, revenue in the first nine months of 2025 was around 27 per cent above the previous year's figure (EUR 178.1m).

Order intake continued to grow compared to the already strong previous quarter. In the third quarter, new orders totalling EUR 64.3 million were acquired (Q3 2024: EUR 57.3m), with significant momentum coming from follow-up orders from customers in North America. The nine-month cumulative view of order intake shows a decline to EUR 215.1 million compared to the outstanding figure from the previous year (30 September 2024: EUR 362.3m). However, this is distorted by the fact that init was awarded two major projects in the first quarter of 2024 (Atlanta, Georgia, and TfL, London), each with a volume in the triple-digit million range. As at 30 September 2025, the order backlog remained at a high level of around ERU 341.6 million (30 September 2024: EUR 392.5m).

Margins improved significantly in the quarter

Gross profit reached EUR 32.8 million in the third quarter of 2025 (Q3 2024: EUR 22.2m), up 48 per cent on the previous year. The gross margin of 38.6 per cent is also above the previous year's figure of 35.0 per cent. This increase is due to the first deliveries for major ongoing projects in the USA, strong follow-up business and measures to improve productivity.

Earnings before interest and taxes (EBIT) rose by almost 73 per cent to EUR 8.7 million in the third quarter of 2025 (Q3 2024: EUR 5.0m). The EBIT margin thus amounted to 10.2 per cent in the third quarter (Q3 2024: 7.9 per cent).

Cumulatively, earnings before interest and taxes (EBIT) rose by around 30 per cent to EUR 15.2 million as of 30 September 2025 (30 September 2024: EUR 11.7m).

Cash conversion remains solid in the financial year

In addition to the initial impact on revenue and earnings, these major ongoing projects have had another significant positive effect: the agreed advance payment terms have quadrupled cash flow from operating activities to EUR 33.3 million in the nine-month period (30 September 2024: EUR 8.0 million). In the current reporting period, operating cash flow amounted to EUR 8.1 million (Q3 2024: EUR 8.0 million), meaning cash conversion remains solid.

Given these results, the Management Board continues to expect that the targets raised in July 2025 for the full year 2025 will be achieved, with revenues in the range of EUR 340 million to EUR 370 million and operating earnings before interest and taxes (EBIT) between EUR 32 million and EUR 35 million.

Nevertheless, management continues to work intensively on increasing productivity and aligning structures with future business requirements. The first positive effects were evident in the EBIT margin, which, at 10.2 per cent in the third quarter of 2025, was above the long-term target. However, further measures are being prepared and implemented.

The complete quarterly statement is available on the website.