EVS (1K) | Buy | Q1 reveals too many IFs for comfort

Research evidence excerpt

EVS (1K) | Buy | Q1 reveals too many IFs for comfort

en weaker given Net financial debt (m) -86.7 -112.8 -133.4

acquisitions add c.EUR15m on an annualised basis, although EVS does not FCF (m) 37.3 45.7 40.2

disclose how much of this is secured early in the year. EPS adj. and ful. dil. 2.58 2.53 2.86

▪In our view, much of the 13% share price recovery since peak Iran/AI, at the end of ConsensusNet dividendEPS 3.271.20 2.861.20 3.480.00

March concerns is likely to reverse today. In our view, the rebound was partly

FY to 31/12 12/26E 12/27E 12/28E driven by management rebuilding confidence with investors during roadshows

P/E adj and ful. dil. 14.2 14.5 12.8

(link) in its ability to convert pipeline into secured revenue, something the Q1 EV/EBITDA 7.8 7.4 6.3

update fails to demonstrate. We therefore expect the stock to de-rate at opening. EV/EBIT 10.5 10.1 8.5

▪Management also states that FY26 is expected to be significantly back-end FCFDividendyield yield 7.1%3.3% 8.7%3.3% 7.7%0.0%

loaded. This increases the dependency on a strong commercial conversion rate ND(F+IFRS16)/EBITDA -1.3 -1.8 -1.9

over the latter quarters in our view, something the company doesn’t fully control. Gearing -34.4% -41.7% -45.5%

▪Management flagged that EVS recorded higher visitor traffic at the NAB Las Vegas ROIC 24.7% 24.7% 28.4%

trade show, despite lower overall event attendance. In our view, the decline in EV/IC 3.0 3.0 2.8

NAB attendance offers a glimpse into the softer capex environment. Sector Most Pref. Sector Least Pref.

ASML ams OSRAM

▪CFO Veerle De Wit will leave the company in July 2026, with Christophe Piron Infineon Ericsson

appointed as interim CFO. Nokia X-FAB Nordic Semiconductor

Lowering our estimates

▪We lower our FY26 EBIT estimates by 12% on the back of weaker conversion,