@R2Discovery's point that the 2.44mm Berlin police contract may just be the start was a great one to think about. Also notable that there was no competition on the tender because there COULDN'T be competition. Only $CEK comms equipment would work.
From the tender, in Engish "Due to compatibility and warranty considerations, only the Ceotronics AG audio communication headsets sold directly by the manufacturer may be used with the agency’s Motorola radio equipment."
I'd bet a larger upgrade cycle is forming and Berlin kciked it off. German police forces currently use TETRA standard, which was procured years ago during the initial transition to digital radio. The radio unit may last 10 years, but but legacy headsets lack modernization
like AI enhanced noise filtering and advanced situational awareness capabilities. As states begin to introduce new technologies (like drones and video uplinks), the old analog interfaces on legacy headsets struggle to keep up. Hence the upgrade cycle and $CEK's role
Just days ago, on May 12, 2026, at the European Police Congress in Berlin, Germany's Federal Agency for Public Safety Digital Radio issued a strong call for a unified, cross-organizational approach. The BDBOS is preparing to migrate the entire country from the older narrowband
TETRA system to a next-gen public safety broadband network (LTE/5G) by 2030. To prepare for this, police forces must start modernizing their "last-mile" user interfaces (like CeoTronics' control units) so they are compatible with both current radios and future broadband devices.
Because procurement is decentralized across 16 states, the upgrades are happening individually. When a major hub like Berlin modernizes its tactical communications, it sets a new baseline. If federal police or neighboring state units need to run joint ops, they require compatible
audio interfaces. This forces a "catch-up" cycle among the other states. Even if a state cannot afford to replace all its radios right now, they can afford to upgrade their SEK headsets. CeoTronics captures this through high-margin adapter sales
allowing modern headsets to bridge the gap and work perfectly with older TETRA radios until the state is ready for the full broadband transition.
Maybe this, in conjunction with SmG call-offs is why they expanded capacity recently? Backlog will always have ups and downs, but even if this is half right, there is visibility for quite a few years. At ~8x EBIT, too
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