Ekinops Q1 2025 revenue slightly up at 28.5 mEUR (+1%)

PARIS, April 10, 2025 /PRNewswire/ -- EKINOPS (Euronext Paris: EKI) (FR0011466069 - EKI), a leading supplier of telecommunications solutions for telecom operators and enterprises, reports its Q1 2025 consolidated revenue (January 1 to March 31, 2025).

In Q1 2025, Ekinops' reported consolidated revenue of 28.5 mEUR, showing a slight increase of +1% vs. Q1 2025, in line with Group's expectations, despite a marked decline in activity in North America (-20%). Excluding North America (which accounted for 20% of total activity during the period), Ekinops' sales grew by +7% in Q1 2025. At constant exchange rates, quarterly revenue remained stable compared to the same period last year.

Access sales up +11% in Q1, decline in Optical Transport

In line with FY 2024, sales for Access solutions grew by +11% in Q1 2025, driven by strong growth in EMEA region (Europe - excluding France - Middle East & Africa), particularly in Germany, and continued growth in France. Sequentially, Access activity saw a +19% increase in Q1 2025 vs. Q4 2024.

On the other hand, sales of Optical Transport equipment decreased by -16% in Q1 2025, still impacted by telecom operators' cautious investment and inventory clearing policies in a challenging market environment.

Driven by network function virtualization solutions, SD-WAN, and service offerings, Software & Services saw a +17% increase in revenue for the quarter. Software & Services now account for 18% of the Group's total revenue in Q1 2025, compared to 15% a year earlier and 18% for FY 2024.

Sales growth in France and EMEA in Q1 2025, decline in North America

FY 2025 begins with a strong performance for Ekinops in France, with quarterly revenue up +4%, following a strong 2024 (+15% in Q1 and +18% for the full year). In its domestic market, Ekinops continues to benefit from solid sales growth of Access solutions (+9%). By end-March 2025, France accounted for 44% of the Group's total revenue (vs. 43% a year earlier). Internationally, Ekinops reported a slight -2% decline in sales at the start of the year, which now represent 56% of its total activity (vs. 57% a year earlier and 59% in FY 2024).

In North America, quarterly sales totaled 5.6 mEUR, vs. 7.0 mEUR a year earlier. However, sales remained stable compared to Q4 2024. As in 2024, the U.S. market continues to be marked by a cautious approach from operators, amid slowing bandwidth demand growth and a lack of new network rollouts by telecom operators. This region now accounts for 20% of the Group's quarterly revenue, vs. 25% a year earlier.

Following the end of FY 2024, the EMEA region (Europe - excluding France - Middle East & Africa) saw a significant increase in activity (+21% in quarterly sales), driven by double-digit growth in both Access solutions and Optical Transport equipment. Ekinops generated 36% of its business in EMEA in Q1 2025, vs. 30% a year earlier and 37% for the full FY 2024.

The Asia-Pacific region accounted for less than 1% of activity in Q1 2025 (vs. 3% a year earlier and 2% in FY 2024).

Outlook

Q1 2025 performance is in line with Ekinops' expectations, with a continued slowdown in North America, solid growth in France, and strong progress in EMEA, both in Access and Optical Transport.

By continuing to focus on a recovery in the telecom market while implementing the first actions of the new strategic plan, Bridge, Ekinops aims to gradually return to growth in 2025, particularly in North America, amid a market environment that remains complex and demanding.

Impact of new U.S. tariffs

In light of the announcement of new U.S. tariffs, Ekinops is exploring various options to adapt its commercial strategy. The company generates approximately 20% of its revenue in the United States.

Ekinops reminds that all manufacturing and assembly operations for the equipment sold in the U.S. are carried out exclusively in Europe, at its own production facility in Belgium (Louvain) or through three leading industrial partners (Electronic Manufacturing Services or "EMS"), all of which have production sites in France or the European Union.

Ekinops is thus one of the few global suppliers to manufacture its equipment in Europe, whereas a significant portion of the production of some major global telecom equipment manufacturers is based in Asia.

Full financial calendar can be found here.

All press releases are published after Euronext Paris market close.

EKINOPS Contact
Didier Brdy, Chairman and CEO
[emailprotected]

Investors
Mathieu Omnes, Investor relation
Tel.: +33 (0)1 53 67 36 92
[emailprotected]

Press
Amaury Dugast, Press relation
Tel.: +33 (0)1 53 67 36 74
[emailprotected]

SOURCE Ekinops