init’s group revenue increased by almost 30 per cent to over EUR 292m

• Installation of the ticketing system in Atlanta (USA) well under way
• Revenue targets 2026 will be achieved, but short-term demand and one-off effects slow down earnings growth
• Short-term challenges from cost pressure for transport operators due to higher fuel prices underline market trends and support mid-term growth expectations

Despite unfavourable conditions and continuing high uncertainty in the macroeconomic environment, init innovation in traffic systems SE (ISIN DE 0005759807) achieved revenue growth of almost 30 per cent to over EUR 292m after the third quarter of 2026. This was primarily driven by the Integrated Systems Business Unit successfully driving the installation of the major ticketing project in Atlanta (USA). On the flipside, quarterly profit (EBIT) was negatively affected by one-off effects arising from the revaluation of projects, as well as soft demand for short-term investments from transport operators due to cost pressure and budget constraints following high fuel prices.

Against this backdrop, the Managing Board has adapted its full-year EBIT forecast to a range between EUR 33 and 37m (previously: EUR 38 and 42m) as announced in the ad hoc release on 2 November 2026. This corresponds to a year-on-year increase of up to 14 per cent. The revenue target remains unchanged (EUR 380 and 420m), as init will work to close profit gaps by speeding up the execution of projects in backlog.

According to the quarterly figures now available, in the third quarter of 2026 the init group generated revenue of EUR 91.6m (Q3 2025: EUR 85.1m). This represents an increase of 7.7 per cent over the respective quarters of 2025. Consequently, revenue for the first nine months of 2026 stood at EUR 292.6m, which is 28.9 per cent higher than the figure for the same period of the previous year (EUR 226.9m). However, earnings before interest and tax (EBIT) amounted to just EUR 1.6m in the third quarter of 2026 (Q3 2025: EUR 8.7m), falling to EUR 14.0m by 30 September 2026 (30 September 2025: EUR 15.2m).

'The impact on earnings was unexpected and is primarily attributable to two temporary or one-off factors: Some transport operators had to reallocate their budgets in view of rising fuel costs, offsetting the additional expenditure through savings on non-essential follow-on orders and discretionary investments. In addition, we had to adjust our earnings expectations for two projects in the lower seven-digit figure range. Overall, however, init demonstrated resilience and agility in the third quarter of 2026, despite unfavourable market conditions,' said the Managing Board.

Order intake remains above level of previous year – over EUR 1.2b contracted

This is particularly evident in the order intake. In the third quarter, the init group secured new orders with a total volume of EUR 68.8m (Q3 2025: EUR 64.3m). Order intake remains markedly above previous year. On a cumulative basis, as of 30 September 2026, there has been an increase of EUR 116.0m compared to the previous year's figure (30 September 2025: EUR 215.1m), bringing the total to EUR331.1m. This increase is primarily due to the contract awarded by Transport for New South Wales (TfNSW, Australia) for a modern ticketing system in Sydney. The order book has therefore increased by around EUR 46.2m compared to last year (30 September 2025: EUR 341.6m) to reach EUR 387.8m as of 30 September 2026. Furthermore, the contracted performance obligations amount to EUR 1,223m.

Medium- and long-term growth trends remain fully intact

‘This, combined with the fact that our customers – the transport operators – are having to invest more heavily in optimising their systems, particularly considering cost pressures and budget constraint, makes us confident regarding future business development, despite short-term challenges. In the medium- and long- term, the growth trends in our market remain fully intact. Structural factors such as rising passenger numbers, the increased appeal of public transport through better ticketing services and cost-effective offers, the growing electrification of bus fleets, and the integration of autonomous vehicles into public transport continue to offer considerable growth potential as demand for integrated, digital mobility solutions increases. At the same time, we must consider innovative financing models for system renewal, such as Software as a Service (SaaS) models. These are already in use abroad and have recently also been adopted in Germany, as evidenced in Trier and Rosenheim. We therefore remain committed to our long-term growth targets of 10 to 15 per cent per annum on average and see good opportunities to exceed them,' comments the Managing Board.

The Managing Board expects a significant improvement in operating cash flow in the fourth quarter of 2026, driven by advance payments from major projects and the collection of outstanding receivables. For the 2026 financial year, operating cash flow is therefore expected to amount to between EUR 32 and 38m, provided there are no significant supply chain disruptions.

The Q3/2026 quarterly statement is available on the company’s website.