Kudelski HY EBITDA loss narrows on European customer expansion
Kudelski HY EBITDA loss narrows on European customer expansion
Overview
Switzerland digital security provider's half-year revenue fell 1.5% yr/yr to USD 171.8 mln
Core Digital Security segment returned to growth, up 0.7% yr/yr for first time in 5 yrs
Group EBITDA loss narrowed to USD 11.5 mln from USD 19.1 mln yr/yr
Outlook
Kudelski expects stronger H2 2026 revenues, supported by Core Digital Security seasonality and double-digit IoT growth
Company sees full-year 2026 Cybersecurity revenues lower than 2025
Management targets break-even free cash flow for H2 2026, reflecting improved profitability
Result Drivers
EUROPEAN CUSTOMER EXPANSION - Core Digital Security growth attributed to expanded scope of business with key European pay-TV and media customers
AUTOMOTIVE PARTNERSHIPS - IoT segment growth driven by expanded partnerships with financial service providers in the automotive sector and increased unit sales
MDR BOOKINGS GROWTH - Cybersecurity segment saw strong bookings growth in Managed Detection and Response, though revenue declined as bookings are recognized over time
Company press release: ID:nEQ1jfd7za
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 EBITDA |
| -$11.50 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Reuters Recommended Reads
Aug 25 - IT service provider Tialis H1 revenue falls on delayed orders, contract losses
Aug 24 - Israel's BATM H1 revenue rises on higher carrier ethernet sales
Aug 24 - Swiss industry fears tariff gap to European Union could hurt US exports
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)