adesso (ADN1) Q1 2026 earnings summary

Executive summary

• Achieved 13% organic revenue growth year-over-year to EUR 398.1 million in Q1 2026, with all growth organic and no M&A impact.

• EBITDA rose 58% to EUR 27.0 million, with margin improving to 6.8% from 4.9%, driven by higher sales and controlled operating expenses.

• Net income and EPS improved, with consolidated earnings at EUR 2.7 million and EPS at EUR 0.39, both positive after prior year losses.

• Growth was supported by strong demand in insurance, utilities, and public sector, as well as digitalization and SAP projects.

• Headcount increased 10% year-over-year to 11,497, with most growth in Germany and significant shoring in Romania, Bulgaria, and India.

Financial highlights

• Gross margin remained stable, supporting EBITDA growth, while gross profit per employee increased to EUR 117,000.

• Personnel costs per FTE increased 1% due to senior hires and inflation, partially offset by shoring; total staff costs rose 12%.

• Net working capital rose 28% year-over-year, contributing to higher net debt, which reached EUR 141.2 million.

• Equity ratio improved to 22.0% as of March 2026.

• Operating cash flow was negative in Q1, reflecting typical seasonal outflows, but free cash flow remained negative at EUR -64.9 million.

Outlook and guidance

• Full-year revenue guidance of EUR 1.6–1.7 billion (9–16% growth) and EBITDA of EUR 130–150 million reaffirmed, with majority of revenue and EBITDA expected in H2.

• Capacity utilization expected to improve in Q2 and remain stable, with hiring speed reduced.

• Tax rate for the year expected between 45–55%, above normal due to non-deductible expenses and loss-making subsidiaries.

• Profitability expected to improve, supported by additional working days and stabilized utilization.