EVS Broadcast Equipment S.A.

EVS reported H1 2026 revenue of EUR 107.2 million, gross profit up 10%, EBIT of EUR 15.6 million, and net profit of EUR 16.5 million, up 24% year on year. Cash flow from operations was EUR 13 million versus a EUR 3 million outflow in the prior-year period, a EUR 16 million improvement. Management said H1 revenue was a record despite adverse geopolitical and FX conditions, while gross margin was pressured by unfavorable exchange rates and a few large lower-margin trade-in deals. Forward guidance was reaffirmed at EUR 220 million to EUR 240 million in revenue and EUR 40 million to EUR 50 million in EBIT, with the dividend also confirmed.

Serge Van Herck framed the quarter as evidence that the PlayForward strategy is building both resilience and future growth. He emphasized a record commercial pipeline, stronger recurring revenue, broader product ecosystem adoption, and progress in adjacent markets such as defense and security through Live Vision Systems. His tone was upbeat but measured: he acknowledged Middle East disruption and margin pressure, but said the company is preparing for 2027 with a cost containment plan and stronger revenue visibility.

Christophe Piron focused on the financial mechanics behind the quarter. He said revenue rose to EUR 107 million, cash flow from operations improved to EUR 13 million from a EUR 3 million loss, and net profit growth was helped by stronger financial results, especially the USD treasury position, plus a lower tax rate. He also said margin pressure came from T-Motion dilution of roughly 0.7%, FX, and three large deals that reduced gross profit by EUR 2.58 million, and that OpEx rose 12% partly due to T-Motion and 104 additional staff, including 43 from T-Motion. He stressed that the cost containment plan is being implemented to bring costs back toward 2025 levels, excluding T-Motion.

Analysts pressed on three main areas: the impact of a forthcoming server transition on LSP demand, the sharp decline in LSP orders, and the need for a second-half order-intake acceleration. Management said customers are still upgrading existing XT-VIA systems, software additions like Zoom keep current platforms attractive, and a future hardware server is being worked on but no timing was given. On LSPs, management argued the market is broadly flat and that EVS is not losing share; the decline reflects pressure on LSPs and regional mix, not a structural loss of position. On conversion, CFO Christophe Piron said conversion rates are stable versus the last three years, and management said the sales push is mainly to smooth the order wave earlier in the year rather than because of panic.