TXT e-solutions (TXT) Q4 2025 TU earnings summary

Executive summary

• FY 2025 delivered record results with consolidated revenues of €394 million, up 29–30% year-over-year, and EBITDA of €60 million, up 53% year-over-year, driven by strong Q4 and robust organic growth in high-value services and Smart Solutions.

• All business divisions reported growth, with Smart Solutions and Digital Advisory leading expansion, and performance aligned with the 2025–2027 industrial plan.

• Margin improvement was significant, with EBITDA margin reaching above 15%, surpassing targets.

• Focus remained on high-value, complex projects and AI-enhanced smart solutions, especially in regulated sectors like aerospace, defense, and public sector.

• Performance was supported by continued investment in R&D and proprietary platforms.

Financial highlights

• Revenues for Q4 2025 reached €130 million, up 33% year-over-year; full-year revenues were €394 million, with normalized organic growth of 12% after excluding one-off 2024 revenues.

• EBITDA for FY 2025 was €60 million, up 53% year-over-year, with a margin above 15%; Q4 EBITDA was €19 million, up 70% year-over-year, with a margin exceeding 17%.

• R&D investment in proprietary platforms reached €23 million, up 56% year-over-year.

• International revenues were €65 million, accounting for 16% of total revenues.

• Discontinuation of €12 million in 2024 one-off and non-strategic Telco activities improved profitability.

Outlook and guidance

• 2026 guidance targets EBITDA above €65 million, with ambitions to exceed €70 million including M&A contributions; organic revenue growth expected at ~10%.

• M&A pipeline expected to add at least €6 million in EBITDA for 2026, with margin guidance of 12–15% pre-synergies.

• Management confirms objectives of the 2025–2027 industrial plan, expecting continued value creation and sustainable growth.

• Positive impact of AI developments anticipated in the short to medium term.

• Backlog for Digital Advisory and Software Engineering exceeds €100 million each for 2026 and beyond.