Intica Systems (IS7)
IS7 is a German company specializing in the development, manufacturing, and marketing of inductive components, passive analog circuit technology, and mechatronic assemblies, serving the automotive and industrial electronics sectors.
Latest guidance: FY 2025 guidance remains unchanged: revenue between €66–72m and EBIT at the lower end of €-0.5m to €1.5m
Observe: Upside potential depends on clear operational turnaround
Hold Maintained; TP Cut to €3.60 as 2025 Trough Likely Before 2026 Recovery
2025-09-03 │ DEU │ P/TB 0.75 │ URL
sc-consult reiterated Hold on InTiCa Systems SE, trimming the 12-month target price to €3.60 (from €3.80) after H1 2025 showed revenue down 13% to €34.4m, with Mobility up 3% to €32.0m but Industry & Infrastructure down 70% to €2.4m on solar weakness; EBITDA fell to €1.9m (margin 5.6% vs 9.4%), EBIT −€1.3m (vs +€0.5m) and net loss widened to −€1.9m, pressured by FX losses and restructuring-related advisory costs despite lower personnel costs; free cash flow improved to +€1.5m on better working capital and reduced capex, equity ratio stood at 28.4%; order backlog was €76.7m (low) but Q3 intake shows some improvement; management maintains guidance for FY2025 (€66–72m revenue; EBIT −€0.5m to €1.5m), expecting mid-range sales and EBIT at the lower end; the note argues 2025 likely marks the trough, with 2026 recovery driven by EV-led Mobility demand and diversification (tailored solutions), while risks include tariff uncertainty, financing headroom, and volatile call-offs.
H1 2025 Revenue Decline and Negative EBIT, Operational Cash Flow Improves; Profitability Recovery Expected in H2
2025/W32 │DEU │ P/TB 0.74 │ URL
Reported H1 2025 revenue of €34.4m, down 12.6% from €39.4m in H1 2024, with EBIT falling to €-1.3m (H1 2024: €0.5m) and EBITDA dropping to €1.9m (€3.7m). Segment performance was mixed: Mobility grew 2.6% to €32.0m, while Industry & Infrastructure plunged 70.4% to €2.4m. Despite the earnings decline, operational cash flow improved significantly to €2.8m (H1 2024: €-0.04m) due to stronger working capital management, though total cash flow was slightly negative at €-0.9m. The order backlog stood at €76.7m, still below last year’s €82.3m, with 92% attributable to Mobility. Management expects demand stability in antennas, new business in plastic components and stator coils for hybrids, and potential volume recovery in EMC filters, with several larger orders pending. FY 2025 guidance remains unchanged: revenue between €66–72m and EBIT at the lower end of €-0.5m to €1.5m, assuming reduced consulting costs and FX losses in H2, with a focus on further material cost optimization and maintaining a stable equity ratio (currently 28.4%).
Executive board change and AGM confirms all proposals amid strategic realignment
2025/W28 │DEU │ P/TB 0.76 │ URL
On July 7, 2025, InTiCa Systems SE announced that Bernhard Griesbeck resigned from the management board effective July 3, 2025. He had been responsible for sales, logistics, and quality management. Until a successor is appointed, his duties will be assumed by CEO Dr. Gregor Wasle and the broader management team. Two days later, on July 9, the company held its AGM, where all agenda items were approved by a large majority. Udo Zimmer and Christian Fürst were re-elected to the supervisory board, and Dr. Michael Hönig was newly appointed. Hönig, a lawyer and family office executive, will support the company’s ongoing transformation. The order backlog as of June 30, 2025, stood at €76.7m, down from €82.3m a year earlier. InTiCa highlighted growing traction for its redefined market strategy, including mobility and tailored solutions across defense, medical, and leisure sectors. The H1 2025 results will be published on August 8, 2025.
Analyst maintains Hold rating amid ongoing restructuring and cautious 2025 outlook
2025/W24 │DEU │ P/TB 0.75 │ URL
In a June 12 update, sc-consult GmbH reaffirmed its Hold rating on InTiCa Systems SE, adjusting the price target down to €3.80 (from €4.40) due to weaker-than-expected Q1/25 results and reduced FY2025 forecasts. For 2024, revenue fell 18.7% to €70.6m, and EBIT turned negative at €-0.6m. Free cash flow improved significantly to €+3.1m, driven by strict cost control and working capital reduction. Q1/25 saw revenue down 14.9% y/y, and EBIT at €-0.5m. For FY2025, InTiCa guides for revenue of €66–72m and EBIT of €-0.5 to +1.5m. While Industry & Infrastructure remains weak, the Mobility division shows signs of recovery. Management remains confident in long-term prospects, supported by diversification into new sectors like e-bikes, defense, and medical. The medium-term outlook remains intact, but realization of upside potential depends on clear operational turnaround.
2024 Annual Report Confirms Decline in Revenue, Margins Under Pressure & Weak Q1 2025 Results, Recovery Expected in Second Half
2025/W22 │DEU │ P/TB 0.xx │ URL / URL
Published its 2024 annual report, confirming preliminary figures. Revenue fell by 18.7% to €70.6m (2023: €86.9m), with both the Mobility and Industry & Infrastructure segments affected by project delays and cancellations. EBIT was negative at €-0.6m (2023: €0.3m), though slightly above adjusted guidance. Positively, operating cash flow rose sharply to €6.2m (2023: €1.6m), supported by cost-cutting, inventory reductions, and improved procurement. Net loss widened to €2.3m, and the equity ratio dipped slightly to 29.8%. For 2025, management expects continued uncertainty with revenue between €66–72m and EBIT ranging from €-0.5m to €1.5m, depending on macro and geopolitical conditions. Strategic portfolio diversification has begun yielding new orders, but volumes are not yet sufficient to offset weak demand in core sectors.
InTiCa Systems SE reported a subdued start to 2025, with Q1 revenue down 14.9% year-on-year to €17.1m (Q1 2024: €20.1m) and EBIT slipping to €-0.5m (Q1 2024: €0.4m). The Industry & Infrastructure segment saw a sharp 63.8% revenue decline due to continued pricing pressure from Asian solar market competitors, while Mobility remained stable with a slight 2.6% drop. EBITDA margin fell to 6.5% from 10.0%, and the quarterly net loss widened to €-1.0m (€-0.23 per share). Operating cash flow was negative at €-1.4m, and the equity ratio dropped to 26.9%. Order backlog stood at €79.9m, below last year's level. Management expects a better second half, supported by strategic market expansion and cost-cutting efforts. Full-year guidance remains unchanged: revenue of €66–72m and EBIT between €-0.5m and €1.5m.
Navigating Headwinds with Cost Discipline and Diversification Efforts
2025/W20 │DEU │ P/TB 0.76 │ URL
Faced a challenging 2024 with revenue dropping 18.7% to €70.6m amid continued weakness in both its core Mobility segment and Industry & Infrastructure division. EBIT turned negative at -€0.6m, though this was better than expected and reflected the company’s cost-cutting measures, which also lifted the EBITDA margin from 7.5% to 8.6%. Despite an improved operating cash flow of €5.6m and a near doubling of liquidity to €1.9m, the significantly lower year-end order backlog (€77.3m vs €99.3m in 2023) and ongoing industry pressures, including weak EU auto registrations and headwinds in the electronics sector, suggest limited short-term recovery. For 2025, management expects flat sales with a modest positive EBIT of €0.4m. Longer-term, InTiCa is investing in diversification, particularly in electric motor components, which may contribute more meaningfully beyond 2025. Revised assumptions lower the long-term EBIT margin target to 5.0% and the CAGR (2025–2031) to 5.8%, resulting in a new DCF-based price target of €4.40 (down from €5.00). The rating remains "Hold" due to continued near-term uncertainties despite strategic progress.
Reports Preliminary FY 2024 Results; Final Financial Reports Delayed
2025/W18 │DEU │ P/TB 0.66 │ URL
Reported preliminary unaudited figures for fiscal year 2024, posting consolidated revenue of €70.6 million, down 18.7% from €86.9 million in 2023. EBIT came in slightly negative at €-0.6 million, an improvement compared to the revised forecast, while EBITDA was €6.1 million, representing a margin of 8.6%. Revenue declines were significant in both the Industry & Infrastructure (-39.4%) and Mobility (-10.2%) segments. Despite challenges from geopolitical tensions and market volatility, cost-cutting measures positively impacted results. The company ended the year with an order backlog of €77.3 million (down from €99.3 million) and liquid assets of €1.9 million, with additional undrawn credit lines of €3.3 million. The equity ratio stood at 29.8%. InTiCa continues restructuring efforts, particularly targeting new series production orders in e-machinery components and expanding opportunities in Mexico. Final audited financial statements for 2024 are expected to be published on May 27, 2025.
New Research Note
2024/W52 │P/TB 0.69 │ URL
Has faced significant market challenges, with a 28% revenue decline to €16.0 million in Q3 2024, driven by reduced demand in the automotive sector and weak sales in Industry & Infrastructure, particularly in photovoltaics and EV components. EBIT for the quarter fell to €-0.8 million, impacted by non-cash currency effects. Despite cost optimization efforts, including inventory reductions and staff adjustments, the company reported an overall EBIT of €-0.4 million for the first nine months, down from €0.3 million in 2023.
Given the difficult market environment, the company revised its 2024 guidance, now expecting annual revenue of €70-75 million (previously €80-95 million) and EBIT between €-1.0 million and €-2.0 million. Management has implemented short-term measures such as cost discipline and negotiations with suppliers and customers for price adjustments. However, broader market challenges, including weak European automotive sales and competition from Asian manufacturers, continue to exert pressure.
To drive long-term recovery, InTiCa is expanding into new markets such as technical plastic parts and high-margin industrial solutions, with a focus on North America. Production capacity in Mexico is being increased to meet demand. The company anticipates improved margins and growth in the medium term, supported by these initiatives.
The analyst has changed fair value of the stock to €5.0 per share (previously €6.0), reflecting current challenges but with significant recovery potential if strategic goals are achieved. The recommendation remains "Hold." The share price per mid-December is €2.16.
Reports challenging first nine months of 2024 amid strategic adjustments
2024/W49 │ P/TB 0.84 │ URL
Reported a 17.8% revenue decline for the first nine months of 2024, with consolidated sales at €55.4m (9M 2023: €67.5m). Both Mobility and Industry & Infrastructure segments were negatively impacted, with the latter experiencing a 40.9% drop to €11.7m due to delayed or canceled projects. Mobility revenues decreased by 8.5% to €43.7m, driven by reduced demand for components like on-board chargers. Despite challenges, operational cash flow improved significantly to €4.7m (9M 2023: €-0.2m), supported by cost-reduction measures and inventory optimization.
YTD EBIT fell to -€0.4m (9M 2023: €0.3m) due to non-cash currency effects. While the EBITDA margin improved to 8.2% (9M 2023: 7.2%), net income for the period was a loss of €1.7m (-€0.7m per 9M 2023). The order backlog declined to €86m (September 2023: €106m), reflecting delays in customer orders.
Given the ongoing macroeconomic pressures, IS7 adjusted its 2024 revenue guidance to €70m - €75m (previously €80m - €95m) and expects a negative EBIT between -€1.0m and -€2.0m. However, the company is optimistic about long-term growth, citing new opportunities in tailored solutions and the expansion of plastic component production in North America.