Drone Volt published its complete H1 25 results, which showed improvement in underlying results despite being superficially burdened by one-off charges. In particular, the restructuring charges might have led the group to slightly downgrade its guidance, although the positive EBITDA objective should still be reached as soon as H2 25. We thus reiterate our Buy recommendation on this now well-funded company, surfing on the focus on drone sovereignty and defence/security spending spree.
The sales were slightly revised upwards to €4.187m (€4.136m previously), still representing an 82% decline yoy, but the gross margin was revised downwards to €1.770m (vs €1.828m previously), thus representing a decline of -22% yoy.
The EBITDA came in at €-1.5m, marking a deterioration from the €-1.1m from H1 24.
The EBIT decreased to €-7.1m from €-3.5m, due notably to a €4.2m charge related to the liquidation of Aerialtronics.
The level of net debt improved yoy from €4.1m to €2.4m, while the level of equity increased slightly to €12m compared to €10.4m at the end of 2024, thanks to the €7m raised in H1 25.
Despite good commercial momentum, the group downgraded its guidance as EBITDA>0 is now only expected for 2H 25 (vs FY 25 previously).
Strong underlying results
On top of a slight revision of the gross profit, the EBITDA decline came from restructuring costs which offset the €0.5m of cost savings recorded during the first half on wages and external expenses. Without these restructuring costs, we can see an improvement in EBITDA, meaning that reaching a positive EBITDA is clearly close.
Similarly, without the negative contribution from liquidated Aerialtronics, EBIT would have improved by €0.6m, reinforcing our conviction that underlying results are improving.
A confirmed recovery of financial strength
On top of the good balance sheet figures, the financial strength exhibited thanks to the latest €12.4m capital increase is visible through the following rapid acquisition of a French company specialised in LIDAR. This quick implementation of new external growth is a real testament to financial health.
The name of the company was not disclosed, which makes it difficult to assess this acquisition quantitatively. However, this addition fits well into Drone Volt’s strategy of focusing on higher-margin businesses as it also offers services, training and sells homemade hardware and software. More specifically, the Drone Volt Expert team will be reinforced by LIDAR solutions, new employees and contractors to complete its French network, a positive development given the shortage of labour force the company was facing for this offer. It will also enable the integration of LIDAR technologies on its own drones while keeping the European-made plea unchanged for its Kobra, for instance.
A slightly downgraded outlook
Despite good commercial momentum, the group downgraded its guidance as EBITDA>0 is now only expected for 2H 25 (vs FY 25 previously), probably because of the downward revision of gross profit coupled with underestimated restructuring expenses.
We nonetheless remain confident in the prospects of the company given the recent contracts signed, even with a major energy provider such as Total Energies, as well as the launch of production of the Drone Volt Kobra in the US, which should reinforce the competitiveness of the group in this important market.
We will integrate these figures into our model, which will affect our EPS figures for 2025 given the €4.2m one-off charge, but our recommendation is unlikely to change given the strong underlying trend and intact commercial traction.
