Ekinops Reports Slight Revenue Increase Despite Challenging North American Market

Ekinops Q1 2025 Revenue Report

Ekinops, a prominent supplier of telecommunications solutions, has released its financial results for the first quarter of 2025, revealing a slight increase in revenue. The reported consolidated revenue reached 28.5 million euros, reflecting a marginal growth of 1% compared to the same period in 2024. Despite challenges faced in the North American market, where activity decreased by 20%, the company's overall performance aligns with its expectations.

Financial Overview

The first quarter of the fiscal year presents a mixed bag for Ekinops. While the revenue figures are encouraging, they do not fully mask the struggles in key regions. Excluding North America—which constituted 20% of total operations during this time period—Ekinops actually recorded a revenue increase of 7%. Furthermore, when accounting for constant exchange rates, the quarterly revenue has remained stable year on year.

In terms of segment performance, sales for Access solutions experienced an impressive rise of 11%, largely propelled by strong demand in the EMEA region, including significant growth in Germany. These results echo the trends witnessed throughout fiscal year 2024, where Access solutions continued to gain traction.

However, the story varies significantly in the realm of Optical Transport equipment, which saw a 16% sales decline. This dip can be largely attributed to the conservative investment patterns of telecom operators coupled with ongoing inventory clearances within a challenging market landscape.

Regional Performance Analysis

Ekinops experienced strong performance within its domestic market of France, reporting a quarterly revenue growth of 4%—a continuation of its robust 2024 that saw increases of 15% and 18% in the first quarter and full year, respectively. As March 2025 concluded, France contributed 44% to the Group's total revenue, a slight uptick from 43% the previous year.

Internationally, performance was more subdued, with a slight decline of 2% in sales during this quarter, now making up 56% of the company’s total activity. North America showed a stark contrast, with revenues falling to 5.6 million euros compared to 7.0 million euros in the previous year but stable when compared to Q4 2024. The market remains cautious, influenced by slowing bandwidth demands and a decrease in new network rollouts by operators.

The EMEA region, however, exhibited positive momentum with a substantial 21% increase in quarterly sales. This increase was spurred by double-digit growth for both Access solutions and Optical Transport equipment, allowing Ekinops to derive 36% of its business from EMEA during this quarter, up from 30% the previous year.

Future Outlook and Market Adaptation

Looking ahead, Ekinops anticipates continued challenges in North America but is optimistic about solid growth prospects in France and robust activity in EMEA markets. This forward-looking perspective ties in closely with their new strategic plan, dubbed