Solwers (SOLWERS) Q2 2025 earnings summary

Executive summary

• Operates as a group of 27 consultancy companies in Finland, Sweden, and a new subsidiary in Poland, with 700 experts and EUR 78 million revenue at end of 2024.

• Revenue grew 6% year-over-year to EUR 42.3 million for January–June 2025, but profitability declined significantly.

• Largest clients include public infrastructure agencies and a balanced mix of public and private sector projects.

• Growth platform with light integration, focusing on collaboration and cross-selling among subsidiaries.

• CEO transition announced: Johan Ehrnrooth to succeed Stefan Nyström in November 2025.

Financial highlights

• H1 2025 revenue was EUR 42.3 million, up 6% year-over-year, mainly from acquisitions; organic growth was slightly negative.

• EBITA margin dropped to 4.3% (from 8.2%), and EBIT margin to 0.4% (from 4.9%) compared to the same period last year.

• Net profit turned negative at -EUR 0.6 million versus +EUR 0.8 million last year.

• Net cash flow from operating activities was EUR 0.5 million; cash balance at period end was EUR 11.2 million.

• Dividend paid: EUR 0.024 per share (down from EUR 0.064).

Outlook and guidance

• Market remains challenging with investment delays, especially in residential, commercial, and some industrial sectors.

• Order backlog has increased, but margin pressure persists due to price competition.

• Focus for 2025 is on profitability improvement, cost cutting, organic growth, and selective acquisitions.

• Management expects market recovery to be possible in H2, but timing is uncertain.

• Mid-term targets: revenue growth over 20% (12 months), EBITA margin over 12%, equity ratio over 40%.