Itera (ITERA) Q4 2025 earnings summary

Executive summary

• Navigated a persistently soft IT market in Q4 2025 with resilience, leveraging a new regional structure and operational improvements, and generating NOK 54 million in operational cash flow.

• Cloud and Application Services (CAS) became a key growth engine, achieving 17% revenue growth in Q4 and 19% for the full year, driven by AI and automation investments.

• Operational changes incurred costs in Q4 but are expected to deliver a 1.5–2.0 percentage point margin uplift in the coming months.

• New customers contributed 12% of Q4 revenue, diversifying the client base.

• Strategic expansion into defense, geospatial, and Ukraine sectors highlighted as long-term growth opportunities.

Financial highlights

• Q4 2025 revenue was NOK 213.4 million, up 1% year-over-year; full-year revenue was NOK 844.3 million, down 1%.

• EBIT margin for Q4 was 1.8%, down from 3.5% last year; full-year EBIT margin was 4.3%.

• Cash flow from operations in Q4 was NOK 54.4 million, with NOK 63.2 million for the full year.

• EBITDA to cash conversion reached 91.8% over the last twelve months.

• Earnings per share for Q4 was NOK 0.04, down 45% year-over-year; full-year EPS was NOK 0.28, down 35%.

Outlook and guidance

• Operational improvement program expected to improve EBIT margin by 1.5–2 percentage points in the coming months, with effects starting in Q1 and full impact by Q2.

• Market sentiment remains cautious but shows early signs of improvement in the Nordics and core segments.

• Continued investment in AI, cloud, and managed services, and expansion in Ukraine and international sales capacity.

• No formal guidance provided for future prospects.