NNIT (NNIT) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were below expectations, with revenue and EBIT significantly declining year-over-year due to geopolitical turmoil, industry slowdown, and customer hesitation, especially in Life Sciences and the U.S.

• Leadership is focused on restoring growth and profitability through operational improvements, cost reductions, and a sharpened go-to-market approach.

• Two new AI platforms, Lumina and Alera, were launched to strengthen offerings in regulated industries and public sector.

• Special items, mainly restructuring costs, totaled DKK 8.3 million, significantly lower than last year.

• Free cash flow improved to DKK 41 million, up DKK 114 million from last year, driven by a lower cost base and completed earn-out payments.

Financial highlights

• Q1 2026 revenue was DKK 422.5 million, a reported decline of 9% and constant currency decline of 7.3% year-over-year.

• Group EBIT (excluding special items) was DKK 1.1 million, with a margin of 0.3%, down from DKK 18.0 million (3.9%) last year.

• Special items (restructuring costs) totaled DKK 8.3 million in Q1 2026.

• Free cash flow improved to DKK 41 million from negative DKK 73 million last year, mainly due to cost base reduction and improved receivables.

• Gross margin declined to 20.1% from 25.8% year-over-year.

Outlook and guidance

• 2026 constant currency revenue growth outlook revised from 0%-5% to single-digit negative due to weak Q1 and lower order entry.

• Group EBIT margin (excluding special items) updated from 6%-9% to 4%-7%.

• Special items expected to remain below last year’s DKK 83 million.

• Positive impact from cost and sales initiatives expected in the second half of 2026.

• Outlook assumes no further macroeconomic/geopolitical deterioration and no M&A activity.