Tecnotree (TEM1V) Q2 2025 earnings summary

Executive summary

• Achieved record order backlog of €105.7 million, up 46% year-over-year, with significant expansion in Europe, Americas, and Africa, and five consecutive quarters of positive free cash flow reaching €2.1 million in H1 2025.

• Operating margin improved to 28.0% (+520bp), driven by cost optimization, increased license sales, and operational discipline.

• Net sales in constant currency grew 2.7% year-over-year, despite reported decline due to USD devaluation and €4 million FX losses.

• Strategic focus on cloud-native, open standards-based digital stack, AI-driven efficiency, and mature markets, with new key deals and industry recognitions.

• Secured 10 go-lives in H1, delivered 600+ new features, and received multiple industry awards for AI and digital transformation.

Financial highlights

• H1 2025 revenue at €34.2 million (-2.1% YoY), €35.9 million in constant currency (+2.7%); EBIT grew 20.6% to €9.6 million, with margin up to 28.0%.

• Net income at €2.6 million, down 30% YoY, impacted by €4 million FX loss from USD devaluation; EPS at €0.15 (0.22).

• Free cash flow positive for five consecutive quarters, €2.1 million in H1 versus negative €3.9 million last year.

• Order intake reached €74 million in H1, with order backlog at a record €105.7 million.

• Capex-to-sales reduced to 14% in H1, targeting 10–12% for the year.

Outlook and guidance

• Full-year 2025 revenue guidance raised to low/high single-digit growth in constant currency, with margin growth of 200 basis points expected.

• Free cash flow guidance maintained at over €4 million for the year; capex/sales targeted at 10–12%.

• Receivables days targeted at 100–140; FX risk exposure to be reduced to 10–15% by 2027.

• Guidance assumes currency stabilization and continued operational discipline.

• Industry BSS sector expected to contract in 2025, but company anticipates growth via market share gains.