Etteplan (ETTE) Q1 2026 earnings summary

Executive summary

• Q1 2026 was challenging due to global political tensions, leading to weak customer demand and slow decision-making, despite increased commercial activity and customer engagement.

• Investments in AI-driven solutions and service development continued, with AI-driven offerings now accounting for 6% of revenue, up from 2% a year ago.

• Significant restructuring and adaptation measures, including layoffs in Finland, Sweden, and Poland, were implemented to address weak demand and industry changes.

• Non-recurring items, mainly from restructuring and adaptation, negatively impacted profits by EUR 0.7 million.

Financial highlights

• Revenue declined by 4.6% year-over-year to EUR 90.5 million.

• EBITA was EUR 3.7 million (4.1% margin), down 36.1%; EBIT was EUR 2.2 million (2.4% margin), down 47.8%; EPS was EUR 0.04, a 55.4% decline.

• Operating cash flow was EUR 4.1 million, down from EUR 5.0 million in Q1 2025.

• Personnel at period end: 3,748, a 4.3% decrease year-over-year, with 157 employees temporarily laid off in Finland.

Outlook and guidance

• Revenue guidance for 2026 remains at EUR 360–380 million.

• EBIT guidance was narrowed to EUR 19–23 million due to weak Q1 and market conditions.

• Market outlook remains weak due to geopolitical tensions, but defense and energy sectors show favorable demand.

• AI-driven revenue expected to accelerate as new offerings gain traction.