ARCHOS Accelerates: +53% Revenue Growth in 2025, Targeting €90M in 2026
ARCHOS announces a fourth consecutive year of strong growth, with 2025 revenue up by 53% to €47.9M, driven by its defense sector. However, this expansion comes with a decline in gross margins and a surge in operational expenses.
Financial Performance in 2025
ARCHOS Group achieved a revenue of €47.9M in 2025, an increase of 52.7% compared to €31.4M in 2024. This significant growth marks the fourth consecutive year of double-digit increases for the group, with the defense activity accounting for 75% of the total revenue. Gross margin also improved in absolute terms, rising from €8.9M to €12.2M (+37%). Net income stood at €1.7M, a 23% improvement from 2024, generating a net profitability rate of 4% of revenue, consistent with the previous year.
Challenges in Profitability
However, this revenue growth is accompanied by a concerning decline in commercial profitability. Gross margin, although higher in euros, fell as a percentage of revenue, from 28% to 25%. More troubling, operating expenses skyrocketed by 54%, reaching €12.3M in 2025 compared to €8.0M in 2024. The group attributes this increase to acquisitions made in 2025 and investments related to the Tempest program, its sovereign production facility in Essonne. As a result, operating income was only €1.1M, a minimal increase of 2%, and represented just 2% of revenue compared to 3% in 2024. Financial debt also increased, from €8.0M to €9.1M, while inventory rose from €2.9M to €5.4M.
Outlook for 2026
For 2026, ARCHOS aims to nearly double its revenue to over €90M, driven by exceptional growth in the defense sector. The group already has an order book of €35M for the year. This trajectory is based on three pillars: the completed integration of 2025 acquisitions (Logic Instrument, Distrame, Glacier Computer, Artic), the commissioning of the Tempest factory for electromagnetic security of equipment (estimated national market of €50M annually), and a German expansion strategy aiming to triple activity over three years through a partnership with RheinMetall. The group does not rule out further acquisitions in 2026. However, the key challenge lies in ARCHOS's ability to absorb this external growth while improving its operational margins.
