WEDEL (dpa-AFX) - Defense supplier Vincorion has secured a significantly higher volume of orders amid the ongoing military spending boom. Order intake in the first quarter nearly quadrupled compared to the same period last year, reaching 149.4 million euros, the market newcomer announced in Wedel on Thursday. This brings Vincorion's total order book to approximately 1.2 billion euros, covering more than 90 percent of its projected annual revenue. CEO Kajetan von Mentzingen cited robust demand and reaffirmed the company's full-year targets.
As previously reported, revenue rose by 40 percent to 69 million euros at the start of the year. Adjusted earnings before interest and taxes (EBIT) increased by nearly a third to 12.4 million euros. However, the corresponding margin contracted to 18.0 percent, down from 19.4 percent in the prior-year quarter. Free cash flow also weakened compared to a year ago, slipping into negative territory.
For the current fiscal year, revenue is still expected to reach between 280 million and 320 million euros. In 2023, revenues amounted to approximately 240 million euros. Vincorion anticipates an operating margin (EBIT margin) in the range of 18 to 19 percent. 'Following our successful IPO, we are well-positioned to sustain our profitable growth story, and we remain confident in meeting our annual guidance,' stated CFO Dieter Holst.
Vincorion went public at the end of March with an issue price of 17 euros per share. The company was part of the Thuringian technology group Jenoptik until 2022, when it was acquired by British investor Star Capital. The timing proved lucrative for the private equity firm as demand for defense equipment surged. While they monetized their investment through the IPO, they remain the majority shareholder.
Following the preliminary data released in late April, Vincorion's share price rallied sharply. On Thursday, it reached an all-time high of 23.78 euros during intraday trading. Profit-taking subsequently set in, pulling the price back to 22 euros. This gives the company a market capitalization of 1.1 billion euros.
As a defense contractor, Vincorion manufactures mechatronics, generators, and other power solutions. Its products are integrated into tanks and air defense systems, including the Leopard 2 main battle tank, the Puma infantry fighting vehicle, and Patriot missile systems. The company name, Vincorion, is a portmanteau of the Latin 'vincere' (to conquer) and the constellation Orion. The company employs approximately 900 full-time staff./niw/tav/zb
