A freshly signed memorandum of understanding with Norwegian MRO specialist Heli-One marks a pivotal step for Vincorion’s next-generation rescue winch. The agreement covers certification, integration and maintenance of the ERH premierV, an electrically powered system capable of lifting loads of just over 300 kilograms across distances of up to 330 feet with wireless controls — making it well suited for complex maritime rescue missions.
The aviation segment, however, remains a work in progress. In the first quarter it delivered sales of €13.7 million, essentially flat year-on-year and in line with management’s expectations. Vincorion is simultaneously pushing ahead with capacity expansion at its plants in Altenstadt, Essen and Wedel, where new pulse-lines are being installed to boost throughput. The company intends to fund all German and US expansion from its own resources, ruling out equity or additional debt.
The broader group got a powerful boost from its other two divisions. Total revenue surged 40 percent to €69.0 million, up from €49.3 million in the prior-year quarter. Vehicle Systems — which includes stabilisation products and spare parts — led the charge with a 60.6 percent increase to €35.4 million. Power Systems climbed 42.6 percent to €20.7 million, buoyed by systems for ground-based air defence.
Adjusted earnings before interest and tax rose 30 percent to €12.4 million. The margin narrowed to 18.0 percent from 19.4 percent, reflecting higher costs following the initial public offering and the uneven phasing of research and development spending across the year. Capitalised R&D outlays held steady at €2.9 million.
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The most conspicuous weakness sits in the cash flow statement. Free cash flow flipped to minus €7.1 million from a positive €1.6 million a year earlier. Capital expenditure increased to €2.1 million, but the bigger drag came from a €10.7 million working capital build — more than triple the prior year’s figure — and tax payments of €5.9 million, largely catch-up payments from earlier periods.
Management remains confident the strain is temporary. The production ramp-up, while costly in the short term, is a direct response to robust demand. More than 90 percent of the projected full-year revenue is already covered by firm orders. For 2026 the group maintains its guidance of revenue between €280 million and €320 million and an adjusted EBIT margin of 18 to 19 percent. Operating cash flow is expected to reach around €38 million.
On the stock market the reception was mixed. The shares touched an intraday high of €23.78 on the day of the release before retreating to €22. By Friday they had slipped further to €21.22, giving back part of a nearly 30 percent rally over the previous month. The relative strength index has fallen to unusually low levels, signalling a short-term oversold condition.
Investors now face a classic growth-versus-execution dilemma. Vincorion’s order book and demand profile are strong, but the cash flow squeeze underscores the cost of scaling up quickly. The strategic pivot into aviation — anchored by the Heli-One partnership — adds a promising new leg to the story, but the immediate focus will be on whether the working capital cycle turns around in time to keep the balance sheet from feeling the heat.
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