Vincorion’s Institutional Backing Hardens as First Quarterly Report Nears

Defence supplier Vincorion reports maiden quarterly earnings on May 7, with doubled net profit, €1.1bn backlog, and a valuation discount to peers.

The defence supplier that listed in Frankfurt just six weeks ago is entering a new phase. With the stabilisation period now closed and the share price holding above its €17 issue price, Vincorion faces its first genuine market test on 7 May, when it publishes its maiden quarterly report as a publicly traded company.

The immediate support mechanism has been wound down. J.P. Morgan, acting as stabilisation manager, exercised the greenshoe option on 17 April for roughly 2.1 million ordinary shares at the IPO price. That move came after the stock had rallied nearly twelve percent over seven trading days, fully reversing the initial post-listing dip.

What replaces that artificial floor is a base of heavyweight institutional holders. Fidelity International, Invesco and T. Rowe Price each own around four percent of the company, according to the shareholder register. Together they committed €105 million in purchase guarantees at the time of the IPO. Private equity firm STAR Capital, which placed roughly 20.3 million shares in the offering, retains 48.63 percent following the expiry of the overallotment option and remains the controlling shareholder.

That ownership picture should hold steady until autumn, when STAR Capital’s 180-day lock-up period ends. Until then, the free float is unlikely to see any sudden shifts.

A Doubled Net Profit and a €1.1bn Backlog

The numbers Vincorion takes into its first earnings call are already on the record. Revenue rose eighteen percent last year to €240.3 million. Earnings before interest and taxes climbed 64 percent to €33.7 million, while net profit doubled to €19.4 million. The order book stands at roughly €1.1 billion, of which €435 million represents firm orders and the remainder comes from framework agreements the management expects to convert.

For the current financial year, the board is targeting revenue of between €280 million and €320 million — growth of up to a third. The expansion will be self-funded: the March IPO did not raise any fresh capital for the company. A reliable earnings stream comes from the maintenance and spare-parts business, which contributes 55 percent of total sales and carries higher margins.

The company is also pushing ahead with its green agenda. From this year, Vincorion intends to run its operations entirely on renewable energy as part of a broader push toward carbon-neutral production.

Valuation Still Carries a Discount

Despite the strong operating metrics, the stock trades at a price-to-earnings ratio of 46 — a notable discount to peers. By comparison, RENK changes hands at 53 times earnings, HENSOLDT at 95 and Rheinmetall at over 100. Analysts attribute at least part of that gap to Vincorion’s short public track record, which leaves investors with limited trading history to assess.

The 7 May report will test whether the growth momentum from 2025 has carried into the new year. More importantly, it will show whether rising European defence budgets have begun to translate into firm orders for the Wedel-based supplier, which makes components for armoured vehicles and power systems for air-defence platforms.

Market observers note that the current demand for the shares appears organic, with no further support buying from the underwriting banks. The real test begins now.