Anyone entering an airport is unlikely to come into direct contact with products made by the Austrian company Frequentis. Nevertheless, they are essential for smooth air traffic operations. According to the Vienna-based company, it is the global market leader in voice communication systems for air traffic control. Frequentis products are also used in military infrastructure, and in emergency control centres for police and fire services.

In 2024, the company – which is listed in Vienna and Frankfurt – increased its revenue to 480 million euros, a rise of just over 12% compared to the previous year. Seventy percent of that came from the Air Traffic Management (ATM) segment, which includes both civil and military air traffic control. The second business segment, Public Safety & Transport (PSD), covers services for police, fire departments, emergency services, and public transport.

CEO Norbert Haslacher expects strong growth impulses in the military sector in the coming years, as he explains in an interview with Börsen-Zeitung. „We see a global trend of increasing defence spending“, he says. Frequentis wants to benefit from this. „Margins in the military sector are significantly higher than in civil aviation and typically reach the double-digit percentage range“, explains Haslacher. Currently, around one-fifth of the group’s revenue comes from the military sector, with Frequentis products used by NATO member and partner countries. Across the group, Frequentis reported earnings before interest and taxes (EBIT) of over 32 million euros last year, with an EBIT margin of 6.7%.

Over the past year, the company’s share price has risen by more than a quarter and currently trades at around 35 euros. The company has a market capitalisation of roughly 470 million euros. Haslacher sees the company, which was founded in 1947, well positioned in the competition for new contracts – also thanks to its long history. „You need references“, explains the CEO. To gain these, a company must apply for public tenders, win them, and successfully complete the projects. That can take up to ten years. Frequentis is already a known player in the market, and has customers in 150 countries.

To even be allowed to offer a product in a fire department control centre or military environment, both companies and employees must regularly pass security checks by authorities. Are classified documents stored securely? Is the digital infrastructure adequately protected? Is the office building secured against unauthorised access? Those working on or responsible for security-critical projects are also vetted. „Your entire life is scrutinised“, says Haslacher. Born in 1970, he previously worked at the software company Computer Sciences Corporation. Like all Frequentis board members, he had to undergo the so-called clearance process. He has been part of the management board since 2015 and became CEO in 2018.

Even within the Frequentis portfolio, there are subsidiaries that operate largely independently – such as in Australia and the US. „We have a unit in the US staffed only by U.S. citizens“, says Haslacher. „Even we as owners don’t know which customer is buying which product. Reports on projects and revenues are anonymised.“ For the headquarters, that’s „an adjustment“, he admits. „But we’re getting used to it.“ Around 18% of revenue is generated in the US., where Frequentis owns one company in the military and two in the civil sector. Europe accounts for 62% of sales. Frequentis employs around 2,400 people from 65 countries worldwide.

Haslacher’s move from a software company to the Frequentis executive board reflects an internal transformation. Since 2016, the Vienna-based company has been shifting from hardware to more profitable software products. Haslacher’s industry experience was in demand. Yet he admits he had not been consciously aware of Frequentis products beforehand – a common fate for behind-the-scenes safety systems: „I often have to explain what Frequentis actually does. And I’ll admit it – I didn’t know the company before either“, he notes with a smile.

According to the CEO, 70% of the portfolio is now focused on software. The smaller revenue segment for public safety and transport, which was the first to be transitioned, now delivers double-digit Ebit margins – in 2024, it was 10%. In the larger civil and military air traffic control segment, the Ebit margin was still lower at 5.3% in 2024. „It will take another four to five years to complete the transition in Air Traffic Management. The goal is to also achieve double-digit Ebit margins“, states Haslacher.

Norbert Haslacher, born in 1970, is a native of Vienna. The business economist began his professional career at Coopers & Lybrand Consulting, and later worked for 17 years at the IT company CSC. He has been a member of the executive board at Frequentis since 2015. In his free time, he enjoys outdoor activities such as skiing and mountain biking.

Frequentis follows a conservative financing strategy, emphasises the CEO. In 2024, the company ended the year with a net cash position of nearly 82 million euros and an equity ratio of 44%. For research and development, Frequentis has budgeted around 30 million euros for the current year – as it did in 2024 – roughly equal to its reported EBIT. Changing financial metrics to increase dividends is out of the question for Haslacher. „Investments take priority over dividend increases“, he stresses. The proposed dividend for 2024 is 0.27 euros per share.

Although Frequentis has been publicly listed since 2019, it still has a strong core shareholder in Johannes Bardach, who holds 68% of the shares. Bardach served as managing director for many years, and became the sole owner in 1986 after a management buyout. In recent years, the company has also grown through acquisitions, completing ten deals since its IPO. According to Haslacher, the company analyses 35 to 40 potential targets annually. He sees financial room for maneuver. „Our main shareholder wants to keep the majority but isn’t tied to every percentage point.," he says. For a large transaction, a capital increase could be considered.

However, Haslacher emphasises that M&A activity must not overwhelm the organisation. The focus is on target companies with annual revenues in the high double-digit millions. The CEO states that 20% of Frequentis’ own revenue is the upper limit for any acquisition – equivalent to 96 million euros based on 2024 numbers. Quality is the top priority: „Our reputation is everything. After all, we’re not selling refrigerators.“