Allgeier (AEIN) Q2 2025 earnings summary

Executive summary

• H1 2025 saw stagnation and a slight revenue decline due to delayed public sector digitalization projects and cautious private sector investment, with improvement expected in H2 2025 as government spending picks up.

• Investments continued in expertise, personnel, and software products to prepare for anticipated growth, especially in the public sector.

Financial highlights

• Revenue for H1 2025 was €186.9M, down 5.8% year-over-year; gross profit fell 5% to €66.7M.

• Adjusted EBITDA decreased 5.9% to €20.6M; adjusted EBITDA margin was 10.8%.

• Reported EBITDA dropped 19% to €16.0M due to €4.6M in extraordinary expenses, mainly for maintaining public sector project teams.

• EBIT fell 61% to €2.5M; EBT was -€2.4M; net result for the period was -€2.4M.

• Adjusted EPS remained at €0.13; reported EPS was -€0.33.

• Cash flow from operating activities improved to €7.0M (H1 2024: €3.5M); cash and cash equivalents at period end were €29.8M.

Outlook and guidance

• Gradual resolution of public sector project delays expected in H2 2025, with new projects to be implemented.

• IT industry growth in Germany forecast at 5.7% for 2025, with software and IT services as main drivers.

• Management maintains positive long-term growth outlook, focusing on digitalization, cloud, cybersecurity, and AI.

• Guidance for FY 2025 remains unchanged from previous announcements.