Columbus (COLUM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 2% year-over-year to DKK 444 million, mainly due to challenging Nordic market conditions, while the U.K. grew 17% and the U.S. rose 50% from a low base.

• EBITDA increased 32% year-over-year (adjusted for a DKK 20 million extraordinary gain in Q1 2024), with the margin rising to 10.7% from 7.9%.

• Contribution margin improved to 25% from 23% year-over-year, driven by better project execution and strong cost discipline.

• Cash flow from operations decreased by 27% year-over-year, but adjusted for last year's extraordinary gain, improved from DKK 3 million to DKK 17 million.

• Strategy and business model proved resilient amid global uncertainty and selective IT spending.

Financial highlights

• Revenue: DKK 444 million, down 2% from Q1 2024.

• EBITDA: DKK 46 million, up 32% year-over-year (adjusted); EBITDA margin: 10.7% (vs. 7.9% adjusted in Q1 2024).

• Contribution margin: 25% (up from 23% in Q1 2024).

• Cash flow from operations: DKK 17 million (adjusted), up from DKK 3 million in Q1 2024.

• Recurring revenue stable at DKK 57 million (13% of total revenue); efficiency at 62%, unchanged year-over-year.

Outlook and guidance

• Full-year 2025 guidance maintained: organic revenue growth of 7%-9% and EBITDA margin of 10%-12%.

• Management expects gradual improvement, with growth driven by a strengthening sales pipeline and backlog, especially in the U.S. and M3 divisions.

• Focus on developing Data & AI and Digital Commerce business lines, with continued investment in innovation and talent.

• Mid-term EBITDA margin target of 15% supported by efficiency, service center utilization, and commercial excellence.

• Outlook subject to macroeconomic, currency, and geopolitical uncertainties.