FORTEC Elektronik AG Secures $4 Million Defense Contract to Deliver Power Solutions
FORTEC Elektronik AG has secured a $4 million defense contract through its subsidiary, FORTEC Power, to provide specialized power solutions for defense applications, with deliveries expected over several years. The contract is anticipated to positively impact revenue starting in fiscal year 2026/2027, while the company has also proposed a reduced dividend of €0.40 per share amidst a reported backlog of €44.3 million. Analysts maintain a buy recommendation with a target price of €17.00.
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FORTEC Elektronik AG has announced a significant defense contract valued at approximately $4 million. Its subsidiary, FORTEC Power, has been tasked with supplying specialized power solutions for defense applications, with a total volume of $3.8 million to be delivered over several years.
Specific project details, including the end customer, remain undisclosed due to contractual agreements. The new order aligns with a smaller initial defense contract for a drone defense system reported last year.
The company anticipates that this contract will positively impact revenue and results starting in fiscal year 2026/2027, as fiscal year 2025/2026 is seen as a transitional period. A dividend proposal of €0.40 per share has been put forth, reflecting a significant reduction from the previous year's dividend.
The company has reported a backlog of €44.3 million as of September 30, 2025, indicating a decline compared to previous periods. The recommendation remains a buy with a target price of €17.00.
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