EVS Broadcast (EVS)

EVS Broadcast has been a great success right after I started my position and has done nothing since then. Right now it is the third smallest position in my portfolio at 6.7% weight and I haven’t build a very high conviction in my year of ownership. That means it’s time to revisit the thesis, if it’s going to plan, what my return expectations are and what could impact the sentiment of the stock.

As a Belgian company, EVS does not report quarterly results, rather a H1 and H2 full update and revenue updates in Q1 and Q3. The order book was the highlight with 14% normalized growth (the BER segment of EVS serves mega events like the Olympics and football world cup, so it’s on a bi-annual cycle), showing large contract wins including the football world cup and Olympics for 2026. Revenue declined 6% because of some delayed H1 orders, driven by the Trump tariff mania in Q2 and growing managed projects (large projects with milestone recognition payments). EBIT got crushed -38% due to the delayed revenues, which shows the operating leverage in a business with very high R&D investment for its size.

Without the delayed revenue, EBIT would still have been down 9%. EVS maintained its outlook and pointed towards the lower end of the range (195-210 million €) and confirms the 35-43 million € EBIT range. We should note that there is a pretty wide 20% range between EBIT targets, showing how much margins fluctuate based on revenues and reinvestment in this business.

EVS also acquired two companies in 2025, Telemetrics for $13 million and XD Motion for around 3 million €, creating a premium Media Production Robotics division. Those businesses are expected to contribute around 15 million € or so in revenues. M&A was always part of the strategy to reach the 350 million € revenue target for 2030. To achieve this goal EVS will need to compound revenue at over 10% across its cycles (remember, even years are typically around 15 million € high from BER).

As we established, EVS is reliant on large customers running big events. These customers value the decades of track record of flawless execution. But this really is only applicable to large scale productions where a few seconds of outage are already a catastrophe.