Digital transformation specialist for buses and trains remains on a growth trajectory: init expects growth of at least 15 per cent again in 2026

• FY25: EBIT up by 32.5 per cent to EUR 32.5m – high resilience in challenging environment
• Compelling development in cash flow – operating cash flow of EUR 48.8m supports significant improvement in net cash position
• Revenue 2026 expected to rise to between EUR 380m-410m in (2025: EUR 329.7m) – EBIT target: EUR 38m-42m (2025: EUR 32.5m)

After posting a record year in 2025, init innovation in traffic systems SE (ISIN DE 0005759807) expects its rapid growth to continue. “Our company is evolving from a technology supplier to a service partner for public transport companies. This is evident in mega-projects conducted in Atlanta, Houston, London and Luxembourg, as well as in the latest major project tenders, in which we are well placed. Based on this situation and our current order book, we expect to grow by at least 15 per cent in 2026. In terms of the forecast, this equates to revenue of between EUR 380m and 410m. In addition, we have reorganised our business segments with the aim of improving profitability further. We gather this will generate earnings before interest and tax (EBIT) of between
EUR 38m and 42m,” announced CFO Dr Marco Ferber at this year’s annual press conference and analysts’ meeting.

The market for integrated intelligent mobility solutions for buses and trains is undergoing a major worldwide transformation, characterised by trends such as digital transformation, electromobility, autonomous vehicles, smart ticketing, and the increasing use of artificial intelligence. init, as a leading international specialist in digital transformation for buses and trains, has very good chances in these high-value tenders. However, major uncertainties are sweeping the market environment due to external factors such as international conflicts, unpredictable economic policies and growing instability in what were once reliable relationships on the world stage. Management does not expect material improvements in the macroeconomic situation for the 2026 financial year. However, even in these challenging times, init has demonstrated considerable resilience thanks to its international diversification and extensive product portfolio.

Operating cash flow more than quadrupled

Consolidated revenue grew by 24.1 per cent, for example, to EUR 329.7m (2024: EUR 265.7m). EBIT increased by 32.5 per cent to EUR 32.5m (2024: EUR 24.5m). This means that the EBIT target announced was reached as announced and the EBIT margin improved noticeably.

At the same time, the Managing Board has implemented structural improvements and taken measures to increase productivity and optimise internal financing. Consequently, the Managing Board anticipates further improvements in the 2026 financial year: Revenue is expected to increase to EUR 380m-410m and EBIT should come to EUR 38m-42m.

There has also been a greater focus on operating cash flow. This indicator has quadrupled compared to the previous year, reaching EUR 48.8m (2024: EUR 10.8m) on the back of higher EBIT and improved working capital management. It will not be possible to repeat such growth in operating cash flow in the 2026 financial year. However, assuming improvements in working capital management to be maintained and no significant disruptions to supply chains, the Managing Board expects to see an operating cash flow of between EUR 32m and 38m in the 2026 financial year.

New business units for additional growth

The growing complexity of the demands placed on public transport companies, driven by rapid technological change, climate change and decarbonization, electrification of vehicle fleets, budget uncertainties, cybersecurity and rising passenger expectations, are all factors resulting in changes to tendering and demand patterns of public transport companies. In addition, new customer groups and target markets are emerging, which we can now serve following the completion of the acquisition of the DILAX Group. This places significant additional demands on the speed and need for market responsiveness of public transport digitalisation partners. At the same time, rapid growth and increasing internal complexity have led the Managing Board to implement a new management structure with effect from 1 January 2026. This involves reorganising the business into three business units (BUs): INIT Integrated Systems, INIT Cloud Solutions and INIT Passenger Intelligence.

“We expect that by bundling the strengths of individual entities to BU teams that operate at their own responsibility, we will be able to promote innovation, support success for our customers and, in this way, encourage continued strong growth,” states the Managing Board.

Artificial intelligence (AI) is becoming an increasingly significant growth driver in all three business units. In the Integrated Systems segment, where init is a full-service systems provider, growth in 2026 will be driven by mega-projects such as iBus NextGen for Transport for London and MARTA in Atlanta, where init is installing a smart ticketing system ahead of the World Soccer Cup. This follows the trend of an increasing number of public transport operators showing interest in transferring their services and operations to a platform in order to ensure 24/7 technical support and establish a long-term technology partnership. Consequently, demand for our technical operating services has increased. Given the contractual terms of up to twenty years, this also secures high customer retention and quantifiable cash flow for the long term. The Managing Board is forecasting revenue of EUR 280m-300m in this segment and EBIT of EUR 34m-36m for FY2026.

Passenger Intelligence taps into the heavy railways segment

The Passenger Intelligence business unit has solid revenue potential of approximately
EUR 90–100m in 2026. It provides intelligent components and systems that capture passenger behaviour and flows, which are analysed to optimise and monitor public transport operations. This consists of hardware such as sensors, cameras, recorders, monitors and video systems, as well as software to analyse CCTV data such as passenger numbers, occupancy data and AI-based event and aggression detection. We already operate in this field in the heavy railways segment, but there is additional potential in other segments.

In Cloud Systems business, init operates as a Software-as-a-Service (SaaS) provider for public transport operators of all kinds. The business unit was adversely affected by soft demand in its German core market; going forward, reaping the synergies in the BU, synergies should generate substantial growth and profit potential: Greater marketing of SaaS in foreign markets is expected to generate revenue growth for this business unit of more than EUR 40m in 2026.

Based on the solid order backlog of EUR 343.0m as at the end of 2025 (2024: EUR 383.6m) and the substantial potential of the mega-projects for Transport for London and MARTA in Atlanta, init believes that it is well equipped to exceed its long-term growth target of
10–15  per cent once again in 2026.

In the medium term, the steady stream of tenders for digital transformation projects worldwide, from Europe to Oceania, will positively impact business. As a leading global provider, init is well positioned to capitalise on this trend in the long term. However, a prerequisite is that transport operators have sufficient funds available for investment or government backing. If the current trend of easing budget policies observed in some countries persists, it could stimulate further growth for the init group.

The full Annual Report 2025 (which includes the group sustainability report) and the presentation for today’s annual press conference and analysts’ meeting are available on the website of the company.