Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Introduction & Market Context
RTX A/S, a global technology company specializing in secure and reliable communication solutions, presented its Q2 and H1 2024/25 results on May 15, 2025, revealing a significant improvement in financial performance compared to the previous year. The company’s stock closed at 72.4 DKK, up 1.69% on the day of the presentation, reflecting positive investor sentiment.
RTX operates through three main business segments: Enterprise, Healthcare, and ProAudio, providing communication products and solutions for challenging environments. The company emphasizes its asset-light business model centered on trusted partnerships with global brands such as HP (NYSE:HPQ), Cisco (NASDAQ:CSCO), Philips, and Yamaha.
Quarterly Performance Highlights
RTX reported Q2 revenue of 160 million DKK, a substantial 28% increase from 125 million DKK in Q2 2023/24. For the first half of the fiscal year, revenue reached 260 million DKK, up 25.6% from 207 million DKK in the same period last year.
As shown in the following revenue chart:
Profitability metrics showed even more dramatic improvement. Gross margin expanded to 49.7% in Q2 2024/25, up from 45.6% in the same quarter last year. For H1, gross margin reached 50.1%, a significant improvement from 42.9% in H1 2023/24.
The following chart illustrates this margin expansion:
EBITDA showed the most striking turnaround, with Q2 EBITDA of 16.6 million DKK compared to just 0.9 million DKK in Q2 2023/24. For H1, EBITDA reached 7.2 million DKK, a dramatic improvement from the -29.5 million DKK loss reported in H1 2023/24.
This EBITDA recovery is clearly visible in the following chart:
Segment Analysis
Enterprise Segment
The Enterprise segment emerged as the primary growth driver for RTX, with Q2 revenue of 114 million DKK, a 40.7% increase from 81 million DKK in Q2 2023/24. For H1, Enterprise revenue reached 193 million DKK, up 53.2% from 126 million DKK in the same period last year.
The company attributed this strong performance to growth in the retail sector and normalization in key customer demand patterns. RTX highlighted its continuously strong order book from several long-term customers, though noted the short order horizon of three to six months.
The following image illustrates the Enterprise segment’s performance:
Healthcare Segment
The Healthcare segment showed promising growth, with Q2 revenue of 24 million DKK, a substantial increase from just 4 million DKK in Q2 2023/24. For H1, Healthcare revenue reached 29 million DKK, up 70.6% from 17 million DKK in the same period last year.
RTX reported that the Healthcare segment is performing as expected, with revenue coming from key infrastructure products and modules for patient monitoring devices. The company is building up its order book on key products and progressing with the transition to full product ownership and seamless integration with partners and customers.
The following image provides more details on the Healthcare segment:
ProAudio Segment
In contrast to the other segments, ProAudio underperformed expectations. Q2 revenue was 21 million DKK, down 48.8% from 41 million DKK in Q2 2023/24. For H1, ProAudio revenue was 39 million DKK, a 40% decrease from 65 million DKK in the same period last year.
RTX attributed this decline to lower volume from key customers and longer development time for new customers. The company is strategically focusing on its module business while reducing its product business where it experiences lower normalized volume levels. RTX also mentioned signing a cooperation agreement with a new customer in the defense sector, though with limited initial revenue impact but potential long-term opportunities.
The following image details the ProAudio segment’s performance:
Tariff Impact and Production Strategy
RTX provided insights into how US tariffs are affecting its operations. The company currently faces varying tariff rates at its key production sites: 10% in the Philippines, 30% in China, and 10% in Denmark. RTX noted that additional tariffs scheduled for May 2025 have been postponed until July 2025.
The company maintains an asset-light setup with production partners having global footprint. RTX’s customers are the importers of goods, which provides some insulation from direct tariff impacts. The company continues to optimize its production footprint, with main production volumes currently in Denmark, China, and the Philippines.
The following image illustrates RTX’s tariff situation and production strategy:
Financial Position and Cash Flow
RTX’s financial position strengthened during H1 2024/25. Inventory levels decreased to 74 million DKK from 100 million DKK last year, indicating improved inventory management. The net liquidity position improved to 108 million DKK from 87 million DKK last year.
Free cash flow showed a significant turnaround, reaching 7 million DKK in H1 2024/25 compared to -35 million DKK in the same period last year. This improvement reflects both the better operational performance and more efficient working capital management.
The following image summarizes these key financial highlights:
Forward-Looking Statements
For the full fiscal year 2024/25, RTX provided guidance with revenue expected to range between 490-520 million DKK. EBITDA is forecasted at 0-20 million DKK, while EBIT is expected to be between -35 and -15 million DKK.
The company noted that growth is expected to continue in the Enterprise and Healthcare segments, though the short visibility gives insight on only 3-6 months forecast. RTX mentioned that its order book is building up, suggesting potential for continued improvement.
The following image details RTX’s outlook for FY 2024/25:
In conclusion, RTX’s Q2 and H1 2024/25 results demonstrate a significant financial turnaround driven primarily by strong performance in the Enterprise segment and promising growth in Healthcare, despite challenges in the ProAudio segment. The company appears to be effectively navigating tariff challenges while maintaining its asset-light business model. While the outlook suggests continued improvement, the limited order visibility and ongoing challenges in ProAudio remain areas to watch in the coming quarters.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.