Asseco South Eastern Europe (ASE) H2 2025 earnings summary

Executive summary

• Solid operating profit and EBIT growth in 2025, adjusted for one-offs, with strong performance in dedicated and banking solutions, while payment solutions faced headwinds from e-commerce declines in Turkey and write-offs in India and UAE.

• Cash generation and liquidity improved significantly year-over-year, supported by strong collections and higher free cash flow.

• Results were negatively impacted by one-off, non-cash items related to subsidiaries in India and UAE, including revenue reversals, receivable allowances, and goodwill write-downs.

Financial highlights

• Full-year 2025: revenues up 9% year-over-year to €424.5m, operating profit/EBIT up 16% to €59.4m, but net profit declined 4% due to write-offs and tax impacts.

• Q4 2025 revenue grew 13% year-over-year, operating profit up 62%, and net profit up 23%.

• Adjusted EBIT (non-IFRS) increased 18% to €66.4m; adjusted NPAT (non-IFRS) up 14% to €51.3m.

• Major one-offs included EUR 3.7 million goodwill write-off (India/Dubai), EUR 3 million put option liability restatement (Bosnia), and EUR 1 million additional tax (Pillar Two, mainly Bosnia).

• Free cash flow for 2025 was €43.4m, up from €2.5m in 2024.

Outlook and guidance

• 2026 backlog dynamics: 8% for Q1, 6% for the full year, with stronger growth in dedicated solutions and banking, weaker in payments (Turkey impact).

• Expecting high single-digit or low double-digit operating profit growth in 2026, driven by organic growth and efficiency improvements.

• 2026 revenue forecasted to grow 3% to €156.3m for Payten, with margin improvement expected.

• Pipeline includes potential acquisitions of small to mid-sized companies, with 2-3 possible in 2026.

• Backlog for 2026 up 5% year-over-year, indicating continued growth momentum.