Proact IT Group (PACT) Q1 2026 earnings summary

Executive summary

• Revenue grew 2.3% year-on-year to SEK 1,243 million, driven by higher system sales, consulting revenues from acquisitions, and despite negative currency effects and supply chain disruptions.

• Adjusted EBITA/EBITDA surged 46% to SEK 115 million, with margin expanding to 9.3% from 6.5%, reflecting higher gross margins and cost-efficiency measures.

• All business units reported positive adjusted EBITA/EBITDA, reflecting successful restructuring and cost-efficiency measures.

• Divestment of Netherlands staffing operations completed post-quarter to sharpen focus on core services and profitability.

• Market conditions were impacted by sharp price increases in memory components and extended lead times, prompting customer pull-forward investments.

Financial highlights

• System sales totaled SEK 712 million, up 3.5% year-on-year; consulting revenue up 7.7%; support revenues grew about 4%.

• Recurring revenue was SEK 429 million, slightly down year-on-year but up 1.3% like-for-like; ARR reached SEK 1,755 million, up 44% since 2021.

• Gross profit increased 8.3% to SEK 313 million, with gross margin at 25.2% (up from 23.8%).

• Earnings per share at SEK 1.79 for the quarter; profit after tax rose to SEK 78 million.

• Cash and cash equivalents at quarter-end were SEK 499 million.

Outlook and guidance

• Positive momentum expected to continue into Q2, but a slower pace anticipated in the second half of the year due to early customer purchases and extended delivery times.

• Memory price increases and extended lead times expected to persist through most of 2026.

• Further effects from last year’s efficiency program anticipated, especially in West and Central business units.

• Focus remains on hybrid cloud, security, AI-related infrastructure, and recurring revenue growth.

• Market outlook remains uncertain with ongoing supply chain disruptions and sharp price increases for memory components.