Rovsing A/S Announces Directed Share Issue and Publishes 2024/25 Annual Report
Rovsing A/S (OMX: ROVS) has announced the execution of a directed share issue in a move that underscores the company’s intent to strengthen its capital base ahead of a strategic expansion into the growing commercial and defense space sectors. The announcement, released on 16 September 2025 through both Globenewswire and Nasdaq OMX Nordic, indicates that the board has approved a new equity issuance directed to selected investors, a practice that typically signals confidence from existing shareholders and a desire to accelerate investment in research and development, customer acquisition, and infrastructure.
Capital Structure Implications
While the exact number of shares and the subscription price are not disclosed in the press releases, the move is expected to bring additional liquidity into the company, improving its debt‑to‑equity ratio and providing the financial flexibility required to meet the rising demand for satellite test systems, independent verification and validation services, and on‑site engineering support. The capital raised will be directed towards:
- Technology Development: Enhancing the company’s proprietary software solutions that power satellite testing workflows.
- Market Penetration: Expanding sales and support capabilities in key global regions such as North America, Europe, and the Middle East, where institutional and defense customers are increasing their satellite procurement.
- Talent Acquisition: Recruiting specialists in systems engineering, software verification, and data analytics to sustain the company’s competitive edge.
The share issue aligns with Rovsing’s long‑term vision of becoming a preferred partner for space‑industry players seeking robust, end‑to‑end testing and validation solutions.
2024/25 Annual Report Highlights
In the same week, Rovsing A/S released its Annual Report for the 2024/25 financial year, providing a detailed snapshot of the company’s recent performance:
| Metric | 2024/25 | 2023/24 |
|---|---|---|
| Revenue | DKK 37 million | DKK 39.3 million |
| EBITDA | DKK 1.3 million | DKK 2.9 million |
| Order Intake | DKK 37.8 million | DKK 10.3 million |
| Expected Revenue 2025/26 | DKK 37–41 million | — |
Revenue and EBITDA Trend
Revenue slipped 5.7 % year‑on‑year, a decline that the management attributes to the impact of one‑off effects and the cyclical nature of defense procurements. The more pronounced drop in EBITDA, falling from DKK 2.9 million to DKK 1.3 million, reflects the same one‑off costs, including restructuring and advisory fees associated with the recent acquisition of a small satellite‑test software provider. Despite these headwinds, the company’s core operating margin remains within an acceptable range given the industry’s capital intensity and the high fixed costs of laboratory infrastructure.
Order Book Momentum
Order intake, however, has shown a dramatic rebound, rising to DKK 37.8 million from only DKK 10.3 million in the previous year. This surge signals a renewed interest from institutional and defense customers, many of whom are in the planning stages of new satellite missions and require comprehensive testing and certification solutions. The strong order book mitigates the revenue dip and bodes well for future earnings once the one‑off items are amortized.
Outlook for 2025/26
Management projects revenue of DKK 37–41 million for the next fiscal year, indicating a modest upside relative to 2024/25. The guidance reflects an expectation that order intake will continue to grow as the company capitalizes on new contracts, particularly in the U.S. and European space markets. The forecast also hints at a potential improvement in EBITDA as one‑off costs taper off, but detailed margin projections were not disclosed.
Market Context and Forward View
Rovsing A/S operates in a niche yet rapidly expanding segment of the space industry. Global satellite launches are projected to increase by 8–10 % annually over the next decade, driven by commercial mega‑constellations and heightened defense spending. The company’s portfolio—encompassing satellite test systems, verification software, and on‑site engineering—positions it well to capture a share of this growth.
The directed share issue, coupled with a healthy order book, equips Rovsing to:
- Accelerate Product Development: Reduce time‑to‑market for next‑generation test platforms that can handle higher data throughput and more complex payloads.
- Expand Geographic Reach: Deploy regional support centers in key markets to meet the regulatory and logistical needs of defense and commercial customers.
- Invest in Talent: Recruit specialists in systems engineering and software quality assurance to sustain innovation momentum.
In summary, while the 2024/25 year ended with a slight revenue decline and a sharp EBITDA contraction due to one‑off costs, Rovsing A/S demonstrates a resilient business model underpinned by a robust order pipeline and a strategic capital raise. The company’s trajectory suggests that, once the share issue capital is deployed effectively, it will be well‑positioned to capture the upside of a growing satellite market and to deliver improved profitability in the coming fiscal years.