Etteplan (ETTE) Q1 2025 earnings summary

Executive summary

• Q1 2025 began with challenging market conditions, marked by geopolitical tensions and trade war developments, leading to postponed and canceled investments, especially in Central Europe.

• Slight recovery signs appeared in Europe, while China delivered strong growth with hours sold up 21.9%.

• Defense and energy investments remained stable or increased, while demand in other sectors was weak.

• Significant non-recurring expenses from adaptation measures, acquisitions, and a large credit loss in Germany negatively impacted profitability.

• New AI-driven strategy launched, targeting 35% of revenue from AI solutions by 2027.

Financial highlights

• Revenue declined 2.3% year-over-year to EUR 94.9 million; organic revenue down 7.7%.

• EBITA dropped 29.4% to EUR 5.8 million; EBIT fell 37.9% to EUR 4.2 million; EPS was EUR 0.09.

• Operating cash flow was EUR 5.0 million, down from EUR 8.1 million last year.

• Non-recurring items totaled EUR 1.3 million, mainly from restructuring, adaptation, acquisition costs, and a credit loss in Germany.

• Personnel increased by 1.8% to 3,918, mainly due to acquisitions.

Outlook and guidance

• 2025 revenue guidance is EUR 365–395 million; EBIT expected at EUR 23–28 million.

• No further deterioration in demand is expected, but market outlook remains highly uncertain.

• Growth is anticipated if market conditions improve, with a strategic focus on AI and technology-driven solutions.