Vincorion — Strong H1 supports upper-end revenue outlook

Vincorion (XETRA: V1NC)

Last close As at 17/08/2026

EUR22.68

0.32 (1.43%)

Market capitalisation

EUR0m

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Research: Industrials

Vincorion — Strong H1 supports upper-end revenue outlook

Vincorion supplies power and mechatronic systems for defence and aviation platforms, primarily in Germany and other NATO markets. H126 revenue rose 42.4% to €150.2m and adjusted EBIT increased 33% to €28.4m, while margin declined 1.4pp to 18.9%, reflecting a less favourable product mix, reflecting in the short term a shift between order entry and after sales. However, both are growing and after sales benefits in the long run from the growing installed base. Vehicle Systems and Power Systems drove the growth, supported by higher output and strong demand. Order entry increased to €330.2m, lifting the fixed order book to €615.3m. Management maintained adjusted EBIT margin guidance and now expects FY26 revenue at the upper end of the €280–320m range.

Written by

Jonathan Day

Director of Content, Industrials

Aerospace and defence

QuickView

18 August 2026

Price €22.06
Market cap €1,090m
Price Performance
Share details
Code V1NC
Listing XETRA

Shares in issue

50.0m

Net cash/(debt) at 30 June 2026

€(80.8)m

Business description

Vincorion is a German technology company that develops and manufactures advanced power generation, energy management and mechatronic systems for defence, aviation and security applications.

Bull points

  • Industrialised production is now visible in output, supporting further volume growth from the same asset base.
  • Fixed order book rose 41% from year-end to €615m, before frame and soft backlog.
  • Shares trade below larger peers on both blended forward EV/EBITDA and forward earnings.

Bear points

  • Three customers each exceeded 10% of H126 revenue, against one in the prior year.
  • Headline backlog includes frame and soft components that are not yet binding orders, although soft orders are only included once they are open knowledge and Vincorion is single source.
  • Five months listed, with thin consensus coverage and no track record against guidance.

Analysts

Jonathan Day
+44 (0)20 3077 5700
Finlay Mathers
+44 (0)20 3077 5700

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Vehicle and Power Systems drive growth

Vehicle Systems and Power Systems accounted for c 78% of revenue and almost all H1 growth. Vehicle Systems revenue increased 72% following the industrialisation of selected production processes in H225, with adjusted gross margin broadly stable at 30.1%. Power Systems grew 41%, driven by ground-based air defence demand, while adjusted gross margin fell 3.0pp to 33.2% due to temporary product mix. Aviation revenue was broadly flat, with margin lower on fx and product mix.

Strong order entry increases visibility

Order entry increased to €330.2m from €72.7m in H125, lifting the fixed order book to €615.3m. Including frame agreements and estimated sole-source volumes, total backlog is equivalent to c 4.2x last-12-month revenue. Soft backlog is based on orders that have become open knowledge and where Vincorion is the single source, providing greater visibility than a purely indicative pipeline. Management noted that almost 80% of Vehicle Systems order entry ended up in NATO member states, indicating demand beyond German defence procurement, providing some diversification from reliance on a single national budget.

Valuation: Discount to larger peers

The shares rose c 10% following the results. Vincorion trades on c 16.1x blended forward EV/EBITDA, around 8% below a peer group of larger German defence and aerospace companies, while the forward earnings discount is c 16%. The discount may partly reflect Vincorion’s short public-market track record following its March 2026 IPO. H1 provides early evidence of delivery, with adjusted EBIT margin guidance maintained and revenue now expected at the upper end of the range.

Source: VINCORION, Bloomberg Intelligence

Consensus estimates

Year end Revenue (€m) EBITDA (€m) PBT (€m) EPS (€) P/E (x) EV/EBITDA (x)
12/25 240.3 48.2 26.0 0.80 27.6 24.3
12/26e 306.0 66.4 45.2 0.66 33.3 17.6
12/27e 364.6 80.8 58.3 0.84 26.2 14.5

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