Record Orders And AI Upgrades Will Expand Global Markets

Key Takeaways

• Expanding order book, global sports production gains, and innovation in AI and ultra-high-definition technology support sustained revenue and margin growth.
  
• Strategic acquisitions and international expansion broaden the addressable market, diversify revenue streams, and increase earnings stability.
  
• Accelerating industry shift to cloud, automation, and consolidation threatens EVS's hardware-centric model, revenue stability, and competitiveness amid niche expansion and volatile project-based growth.

Catalysts

Provides live video technology for broadcast and media productions in the United States, Europe, Africa, Middle East, and Asia Pacific.

• Record order intake and a robust, expanding order book-driven by increased infrastructure investments from live streaming and on-demand content growth-pave the way for future top-line expansion and improved earnings visibility.
  
• Growing exposure to global sports production, including wins tied to major 2026 sporting events, positions EVS to benefit from rising sports rights fees and demand for advanced, reliable broadcast systems, supporting revenue and gross margin growth.
  
• Ongoing innovation-such as new AI-driven features in core products (LiveCeption, MediaCeption), and development of ultra-high-definition and workflow upgrades-addresses industry migration toward 4K, AI, and immersive content, broadening the addressable market and underpinning long-term revenue growth.
  
• Strategic acquisition of Telemetrics, with plans to globalize its distribution and integrate software/AI differentiation, directly increases total addressable market and drives operating leverage, which is likely to boost earnings and margins over time.
  
• Accelerated progress in North America and expanding international sales footprint diversify revenue sources, reduce cyclicality tied to European broadcasters, and help stabilize and grow earnings.

EVS Broadcast Equipment Future Earnings and Revenue Growth

Assumptions

• Analysts are assuming EVS Broadcast Equipment's revenue will grow by 5.9% annually over the next 3 years.
• Analysts assume that profit margins will increase from 17.9% today to 18.8% in 3 years time.
• Analysts expect earnings to reach €42.9 million (and earnings per share of €3.01) by about September 2028, up from €34.3 million today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as €35.9 million.
• In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 17.6x on those 2028 earnings, up from 13.3x today. This future PE is greater than the current PE for the GB Communications industry at 13.3x.
• Analysts expect the number of shares outstanding to grow by 1.38% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 7.21%, as per the Simply Wall St company report.

EVS Broadcast Equipment Future Earnings Per Share Growth

Risks

• The company faces long-term risk from the accelerating shift of broadcasters and content providers toward software-defined, cloud-native, and automated solutions, which may reduce future demand for hardware-centric and traditional broadcast products-the core of EVS's historical business-potentially pressuring both revenue growth and gross margins over time.
  
• EVS's financials are currently volatile, with H1 2025 revenue down year-over-year (by 6.4% overall and 1.9% excluding event rentals), a 38% decline in EBIT, and a 39% drop in net profit; while management attributes this largely to temporary delays (e.g., tariff-driven business model changes), prolonged or recurring delays could erode earnings reliability and investor confidence.
  
• The company's recent growth is increasingly reliant on a small number of large, milestone-based projects, which introduces lumpy revenue recognition and greater risk that project delays or milestone slippage (potentially due to factors outside EVS's control, such as customer scheduling or third-party integrator issues) could negatively impact quarterly/yearly revenues and earnings consistency.
  
• While expanding into media production robotics and targeting international growth via acquisitions (e.g., Telemetrics), EVS is entering a niche market with a modest forecasted CAGR (~4.5%), highly concentrated U.S. exposure, and operating margins initially below group level; failure to accelerate growth, successfully integrate acquisitions, or shift effectively from hardware to software value could lead to margin and topline underperformance.
  
• The overall industry trend of media supply chain consolidation (large conglomerates, tech giants) and increased in-house broadcast tech development, combined with advances in AI-driven automated production, may shrink the addressable market for specialized vendors like EVS and erode their competitive moat, putting long-term revenue growth and net margin targets at risk.

Valuation

• The analysts have a consensus price target of €43.75 for EVS Broadcast Equipment based on their expectations of its future earnings growth, profit margins and other risk factors.
• In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be €227.8 million, earnings will come to €42.9 million, and it would be trading on a PE ratio of 17.6x, assuming you use a discount rate of 7.2%.
• Given the current share price of €33.35, the analyst price target of €43.75 is 23.8% higher.
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.