Etteplan (ETTE) Q4 2024 earnings summary

Executive summary

• Revenue grew 0.3% to EUR 361.0 million in 2024, supported by acquisitions despite weak organic growth and challenging market conditions, especially in Europe, Finland, and Germany.

• Significant adaptation and restructuring measures, including temporary layoffs and reduced recruitment, were implemented, resulting in notable one-time costs and improved Q4 operational profitability.

• Defense and energy sectors, as well as China, showed strong or improved demand, while other industrial segments and order backlogs declined.

• Strategic investments included acquisitions, AI-powered service launches, and a minority stake in BJIT.

• Operational margins began to improve by year-end, despite the burden of non-recurring items.

Financial highlights

• Full-year revenue was EUR 361.0 million (+0.3% YoY); Q4 revenue was EUR 91.3 million (-4.1% YoY).

• EBITA for 2024 was EUR 24.4 million (-21.1% YoY); EBIT was EUR 18.4 million (-27.9% YoY); EPS was EUR 0.41.

• Operating cash flow for the year was EUR 31.0 million, aided by improved working capital.

• Board proposes a dividend of EUR 0.22 per share.

• Equity at year-end was EUR 117.8 million; total assets EUR 297.8 million.

Outlook and guidance

• 2025 revenue guidance is EUR 365–400 million, with EBIT expected at EUR 23–30 million, reflecting anticipated improvement.

• Management expects gradual market recovery and improved profitability as restructuring benefits materialize.

• Strategic focus is on AI-driven solutions, targeting 35% of revenue from AI and a Managed Services share of 75% by 2027.