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Introduction & Market Context
RTX A/S (CPH:RTX) reported its third-quarter 2024/25 results on August 28, 2025, highlighting solid revenue growth and significant margin improvements that have led management to raise its full-year guidance. The Danish communications technology company, which specializes in wireless solutions for enterprise, healthcare, and professional audio markets, saw its stock rise 1.92% to 85.00 DKK following the presentation.
The company’s performance reflects its strategic focus on developing trusted partnerships with global leaders while leveraging its wireless expertise to deliver secure and reliable communication products for challenging environments.
Quarterly Performance Highlights
RTX reported Q3 2024/25 revenue of 147 million DKK, a modest increase from 142 million DKK in the same period last year. More impressively, the nine-month revenue reached 407 million DKK, representing a 16.7% year-over-year growth compared to 349 million DKK in the first nine months of 2023/24.
As shown in the following revenue chart, the company has maintained a steady growth trajectory despite some quarterly fluctuations:
Profitability metrics showed substantial improvement, with gross margin expanding to 51.7% in Q3 2024/25 from 47.7% in the prior-year quarter. For the nine-month period, gross margin reached 50.7%, up from 44.9% a year earlier. This improvement was attributed to favorable product and customer mix, growth in the higher-margin Healthcare segment, and cost optimization efforts in production planning and sourcing.
The following chart illustrates the company’s gross margin progression:
EBITDA for Q3 2024/25 rose significantly to 15.0 million DKK, up from 9.4 million DKK in Q3 2023/24. The nine-month EBITDA showed an even more dramatic improvement, reaching 22.2 million DKK compared to a negative 20.1 million DKK in the same period last year.
Segment Performance Analysis
RTX’s performance varied significantly across its three business segments, with Enterprise and Healthcare showing strong growth while ProAudio faced challenges.
The Enterprise segment, which focuses on infrastructure, handset, and headset products primarily for retail environments, delivered impressive results with 31% year-over-year growth for the nine-month period. Q3 revenue reached 106 million DKK (vs. 103 million DKK in Q3 2023/24), while nine-month revenue totaled 299 million DKK (vs. 228 million DKK).
As illustrated in the Enterprise update slide, the growth was primarily driven by retail customers and the normalization of key customer demand patterns:
The Healthcare segment, which provides infrastructure for patient monitoring solutions, showed the strongest relative growth. Q3 revenue nearly doubled to 23 million DKK from 12 million DKK in the prior-year quarter, while nine-month revenue reached 52 million DKK compared to 29 million DKK in the same period last year.
The following Healthcare update highlights the segment’s progress in building up its orderbook and transitioning to full product ownership:
In contrast, the ProAudio segment, which focuses on connectivity modules for professional audio solutions, underperformed expectations. Q3 revenue fell to 18 million DKK from 27 million DKK in Q3 2023/24, while nine-month revenue declined to 56 million DKK from 92 million DKK. Management attributed this weakness to lower volumes from key customers and longer onboarding periods for new ones.
Financial Metrics Deep Dive
Beyond the headline figures, RTX reported several other positive financial metrics. Inventory levels decreased significantly to 56.5 million DKK from 90.7 million DKK last year, reflecting improved inventory management. Free cash flow for the nine-month period turned positive at 11.6 million DKK compared to negative 14.2 million DKK in the prior year, and the net liquidity position strengthened to 119 million DKK from 100 million DKK.
The following slide summarizes these key financial highlights:
In a move to enhance shareholder value, RTX announced a new share buyback program of 20 million DKK under the Safe Harbour provisions, scheduled to run from September 1, 2025, to September 1, 2026. The program aims to support share price stability and increase earnings per share by returning excess capital to shareholders.
Strategic Initiatives & Outlook
Based on the strong performance in the first nine months of the fiscal year, RTX has raised its full-year 2024/25 guidance. The company now expects revenue between 530-560 million DKK, EBITDA between 25-35 million DKK, and EBIT between -5 to 5 million DKK.
The updated outlook reflects continued growth in Enterprise and Healthcare segments, a building orderbook, though with limited visibility beyond 3-6 months. Product and capacity costs are expected to remain in line with expectations.
Looking ahead, RTX is focusing on several strategic initiatives, including strengthening its position in critical communication for first responders and defense tactical teams. The company is also exploring new applications in the defense sector, which management believes offers limited short-term impact but strong long-term growth potential.
The company continues to leverage its partnerships with global leaders such as HP, Cisco, Philips, and Yamaha, enabling these partners to focus on brand and market development while RTX handles the design and production of high-quality communication products and solutions.
With its improved financial performance, strategic focus on higher-margin segments, and new share buyback program, RTX appears well-positioned to continue its growth trajectory through the remainder of fiscal year 2024/25 and beyond.
Full presentation:
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