Brunel International (BRNL) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue declined 11% year-over-year to €310.5 million, with organic revenue down 10% after adjusting for FX and working days; DACH region was most affected by project slowdowns and client uncertainty.

• Gross profit fell 18% to €56.5 million, with gross margin down 1.7 ppt to 18.2%, mainly due to lower permanent recruitment revenue.

• Underlying EBIT dropped 44% to €8.4 million, with EBIT margin at 2.7%, reflecting lower gross profit and continued cost control.

• Cost reduction program delivered €6 million in savings, reducing operating costs by 11% to €48 million.

• All regions experienced lower activity except for strong performance in the Middle East, India, and Americas, driven by LNG, energy, and mining projects.

Financial highlights

• Revenue: €310.5 million, down 11% year-over-year; gross profit: €56.5 million, down 18%; EBIT margin: 2.7%.

• Permanent recruitment revenue halved to €3.3 million, down €3 million year-over-year.

• Operating expenses were €48 million, below the €50 million guidance.

• Free cash flow was negative at -€21.8 million, mainly due to lower results and higher tax payments; net cash balance at €36.1 million as of 31 March 2025.

• Earnings per share fell 51% to €0.09.

Outlook and guidance

• Visibility for Q2 remains low, with April performance similar to March and current trends expected to continue.

• No fixed EBIT floor; cost levels will continue to be adjusted to activity, with readiness for recovery prioritized.

• Further cost savings are planned, with ongoing reviews of activities and offices.

• Strong project pipeline and ongoing IT investments position the company for long-term growth once conditions improve.

• Perm revenue is expected to recover somewhat but not to previous highs.