Asseco Business Solutions (ABS) Q1 2025 earnings summary

Executive summary

• Operating revenues for Q1 2025 reached PLN 108,084 thousand, up 8.3% year-over-year, driven by higher sales of proprietary products in both domestic and foreign markets.

• Net profit increased by 18.2% to PLN 28,409 thousand compared to Q1 2024, reflecting improved profitability and cost control.

• EBITDA rose 9.9% to PLN 40,018 thousand, and EBIT grew 13.5% to PLN 30,243 thousand year-over-year.

• Acquisition of Tax Order Sp. z o.o. (60% stake) in March 2025 contributed to an increase in goodwill and group consolidation.

Financial highlights

• Gross margin on sales improved to 42.1% from 39.8% year-over-year.

• EBITDA margin increased to 37.0%, and net profit margin rose to 26.3%.

• Working capital at 31 March 2025 was PLN 63,607 thousand, nearly double the level at year-end 2024.

• Cash and cash equivalents at period end were PLN 62,854 thousand, up from PLN 40,923 thousand at 31 December 2024.

• No bank loans or credit drawn; open credit lines available up to PLN 70,000 thousand.

Outlook and guidance

• Management considers the financial situation stable with strong production potential and market position.

• Key external risks include the war in Ukraine, interest rates, currency risk, and macroeconomic conditions in Poland and the EU.

• Internal focus remains on product quality, sales effectiveness, and talent retention.