CeoTronics Update: Three Records, One Caveat
Preliminary FY2025/26 print
To read our full disclaimer, click here.
CeoTronics makes communication systems for environments where comms failure costs lives: military, police, firefighting, aviation, hazardous industry.
Roughly 94% of components are built in-house in Germany, which protects IP, secures the supply chain for defence procurement, and locks in switching costs once systems are embedded in a force’s helmets and radios.
The thesis in one line: this has quietly shifted from a lumpy, cyclical hardware maker into a largely contracted business with multi-year framework deals, right as Europe enters a decade-long rearmament cycle. The recurring base sits just above two thirds of revenue, the order book is at record highs, and the market still prices it like an old-school defence contractor.
On June 1, the company released preliminary figures for fiscal year 2025/2026 (ended May 31, 2026).
The rest of this update is for paid subscribers. Below, I break down the three records, the flat revenue caveat that needs context, the margin question I want answered, and what it all means for the thesis.