B3 Consulting Group (B3) Q2 2025 earnings summary

Executive summary

• Revenue grew 18.5% year-over-year in Q2 2025 to 315.6 MSEK, driven by acquisitions in Poland and Norway, with organic growth (including Poland) at 3.2% but -11.2% excluding acquisitions.

• EBITDA increased to 19.3 MSEK (6.1% margin), with adjusted EBITDA margin at 7.1% after excluding one-off restructuring costs.

• Profit after tax declined to 2.6 MSEK from 5.5 MSEK year-over-year; EPS dropped to 0.04 SEK from 0.62 SEK.

• The "Fit for Growth" program is underway, targeting 25 MSEK annual cost savings, with new client wins and expanded assignments in defense, public sector, and financial services.

• B3 was named Sweden's second most attractive IT employer by students.

Financial highlights

• Net sales for H1 2025 reached 639.3 MSEK, up 16.7% year-over-year.

• EBITDA for H1 2025 was 43.3 MSEK (6.8% margin), up 48.8% year-over-year.

• Operating profit (EBIT) for Q2 2025 was 10.3 MSEK (3.3% margin), with adjusted EBIT margin at 4.2% after one-off costs.

• Cash flow from operating activities in H1 was 31.3 MSEK.

• Earnings per share (H1): 0.77 SEK (down from 1.25 SEK YoY).

Outlook and guidance

• Market outlook revised downward: consulting market growth forecast cut from +4.5% to +1.5% for 2025.

• No formal forecasts provided; financial targets include 1.5 billion SEK annual sales by end of 2025 and a long-term EBIT margin of 10%.

• Debt target: below 2.0x EBITDA; up to 50% of profit after tax to be distributed as dividends, subject to capital needs.

• Growth expected in AI, cybersecurity, compliance, and cloud modernization.

• "Fit for Growth" cost savings program targets 25 MSEK annual savings, with full effect by Q4 2026.