Logic Instrument: Record Growth of 42%, But Eroding Margins
Logic Instrument announced on Thursday a record 42% growth in revenue for 2025, reaching €38.8M, driven by recent acquisitions and strong demand in the defense sector. However, the group faces a major challenge: preserving profitability as gross margins erode and operational expenses soar by 39%.
Robust Growth Fundamentals
The European group specializing in rugged computer systems for defense and demanding environments shows remarkable growth fundamentals. Its revenue jumped by €11.4M in one year, from €27.4M in 2024 to €38.8M in 2025. This performance continues a trend, marking the fourth consecutive year of strong expansion. The net income remains stable at €1.2M. However, the most significant element lies elsewhere: the order book has reached over €30M, an unprecedented level for Logic Instrument. This commercial visibility provides a rare assurance in traditionally complex defense markets, offering the group a clear path to finance its growth.
A More Nuanced Reality Behind the Numbers
Behind these encouraging figures, a more nuanced reality emerges. The gross margin, although higher in absolute terms (+24% at €9.4M), sees its yield rate fall to 24% of revenue from 28% in 2024. The group attributes this compression to two factors: persistent price pressure on components since the second half of 2025 and scope impacts related to acquisitions made in 2025 (Distrame, Glacier Computer, and Artic). This erosion of profitability worsens upstream: the operating income, expressed as a percentage of revenue, is established at 3% compared to 6% the previous year. Concurrently, operational expenses have exploded by 39%, reaching €8.2M, a direct consequence of the acquisitions and massive investments in the Tempest program, this sovereign technology against electromagnetic leaks. The group is thus at a critical juncture: aggressively investing to capture market share at the risk of diluting profitability.
Facing 2026 with Ambition
Logic Instrument approaches 2026 with declared ambition: to exceed the €75M revenue mark, almost doubling in one year. This trajectory is based on a strengthened financial foundation, with cash reserves up by €3.3M (+61%) and equity increasing by €4.4M (+68%). The group relies on three pillars to achieve this goal: successful integration of the three acquisitions from 2025, a major breakthrough in Germany through defense partnerships, and the launch of its new factory in Essonne for the Tempest project. This expansion takes place in a favorable context: the German defense market is valued at €50M per year. However, the sustainability of this growth will depend on the group's ability to absorb industrial integration, improve its margins, and justify profitability that no longer progresses relatively. Logic Instrument does not rule out another acquisition in 2026, which will amplify the execution stakes in 2027.
