Rohde & Schwarz revenues climb 5.3% in 2023/24

The 2023/2024 fiscal year (July to June) was characterized by divergent and dynamic market developments. With its focus on connectivity and security, the technology group proved to be well positioned in relevant growth markets.

Revenue increased by 5.3 percent to 2.93 billion Euro, while incoming orders exceeded expectations with a 22.77 percent increase to 3.87 billion Euro. The operating result was positive. Thanks to a healthy sales pipeline, Rohde & Schwarz has started the new fiscal year with optimism.

Major investments include a spend of 15 and 20 percent of its revenue in research and development every year. Employee headcount increased to over 14,400 as of June 30, 2024. Further investments in the group's own centres of competence and production plants ensure customer proximity, flexibility and reliable supply capability.

Given the challenging economic and geopolitical situation, investments in the group's vertical integration ensure the necessary resilience against external influences.

In a challenging market environment, the test and measurement business was generally stable thanks to its diversified product portfolio. In the wireless communications segment, demand was down compared to the preceding years.

However, research and development customers demonstrated their continued reliance on the group's test and measurement equipment to drive forward trending future technologies. These include the next mobile communications generations Beyond 5G and 6G, artificial intelligence and the integration of sensor technology and communications.

Increased demand for test and measurement equipment for research into quantum technologies also had a positive impact on incoming orders.

Rohde & Schwarz is suppprting the automotive industry and it technological transition with well-engineered test and measurement solutions. This includes radar sensors for environmental sensing, which play an important role in the ongoing development of driver assistance systems.

Within the vehicle, connectivity ensures the smooth interaction of all devices and services. Although sluggish investment activity on the part of OEMs and their suppliers affected business over the past fiscal year, the group is well positioned for the future with its broad product portfolio.

As air traffic recovers to pre-pandemic levels, investments in communications technology are also increasing. The group has benefitted substantially from this positive trend. In the past fiscal year Rohde & Schwarz successfully put three nationwide communications systems into operation in Australia, New Zealand and the UK.

Rohde & Schwarz saw increased demand in the security scanner segment. The group sees further market potential – especially in the European and North American markets, where its scanners are already well established.

Rohde & Schwarz successfully maintained its position in the broadcast & media segment. The group reinforced its leading position in the supply of equipment for transmitter networks with the market launch of highly energy-efficient TV transmitters. This also makes it possible to use such new technologies as Next Gen TV and 5G Broadcast today. Leading radio broadcasters worldwide rely on broadcast & media solutions from Rohde & Schwarz.

In the aerospace & defence market, demand was strong for test solutions for radar and satellite applications.

The Technology Systems Division closed the fiscal year with above-average growth. Against the backdrop of geopolitical tensions and armed conflicts, security is a major concern in politics and society. Another major factor behind the extraordinary performance of the division is the German procurement program Digitalization of Land Based Operations (D-LBO), in which the supply of the German armed forces with state-of-the-art radiocommunications plays a central role.

In the avionics field, Rohde & Schwarz has established itself as one of several industry partners of the European defense project Future Combat Air System. The group is participating in the project with its communications solutions and is a development partner of the AI based software platform.

The group successfully won a number of strategically important projects. This included supplying German, Australian and Polish naval forces with radiocommunications and reconnaissance systems. In this context, the group has invested in the establishment of a new naval centre of competence in Hamburg and Kiel (Germany) for proximity to customers when implementing major national and international projects.

The Networks and Cybersecurity Division achieved a significant year-on-year increase in incoming orders. Steady advances in digitalization are leading to a heightened public awareness of the need for digital sovereignty. Individuals, companies and the public sector want autonomy and security when operating in the digital world. As a key supplier in Germany, the group subsidiary LANCOM Systems met the growing demand with its products and solutions for site networking, network security and network management. An outstanding example was the provision of the group's high-performance WLAN solutions for the 2024 Biathlon World Cup in Oberhof, Germany.

In addition, the persistently high cyberattack threat level continues to fuel demand for secure encryption. A specially developed communications platform for the encrypted transmission of information such as telephony, video and messaging services offers the highest possible confidentiality levels. Authorities and the military can rely on interruption-free end-to-end encryption of their data.