Proact IT Group (PACT) Q2 2025 earnings summary

Executive summary

• Revenue declined 7.9% year-over-year in Q2 2025 to SEK 1,171.8 million, with strong growth in Nordic & Baltics and UK offset by significant declines in West and Central.

• Adjusted EBITA fell 21.3% to SEK 76.0 million, with margin at 6.5% (down from 7.6%).

• Group-wide action programs and restructuring were launched to address underperformance in Central and West, focusing on efficiency, sales, and skills.

• New AI-powered cloud services were launched, and the company was named NetApp Enterprise Partner of the Year 2025.

• Acquisition of BlakYaks contributed positively, especially in the UK.

Financial highlights

• Recurring revenue was SEK 430.3 million (36% of total), with annualized recurring revenue down 2.8% year-over-year.

• System sales were SEK 641 million, down 10.7% year-over-year; services revenue was SEK 530 million, down 4.3%.

• Net cash position at quarter-end was SEK 100 million, down from SEK 330 million at year-end, mainly due to acquisitions and investments.

• Cash flow from investing activities was -SEK 241 million, driven by the BlakYaks acquisition.

• Earnings per share in Q2 were SEK 0.89 (2.13), and SEK 2.68 (4.37) for H1.

Outlook and guidance

• Improvement in Central and West is expected to be gradual, with full effects of actions seen in coming quarters.

• Strategic focus on scaling the Nordic success model to other units and investing in AI, cloud, and cybersecurity.

• Focus remains on profitability before accelerating top-line growth.

• No specific timeline provided for meeting all financial targets; updates expected in future quarters.

• Continued investments in sales capacity and technical expertise in growth markets.