Vincit (VINCIT) Q1 2025 earnings summary

Executive summary

• Revenue declined 15.6% year-over-year to EUR 19.4 million due to weak market demand and subdued sales, especially in the US and public sector.

• Adjusted EBITA dropped to EUR 0.1 million (0.4% margin), while EBITA was negative at EUR -0.3 million, and EBIT at EUR -1.4 million.

• Non-recurring items of EUR -0.4 million related to restructuring in the US weighed on profitability.

• Strategic focus on efficiency, SAP and Microsoft Azure ecosystems, and data & AI solutions in the Nordics.

• Change negotiations in Finland and restructuring in the US expected to yield EUR 2.0 million in annual savings.

Financial highlights

• Revenue: EUR 19.4 million (down from EUR 23.0 million year-over-year).

• Adjusted EBITA: EUR 0.1 million (down from EUR 0.7 million); EBITA: EUR -0.3 million.

• EBIT: EUR -1.4 million (down from EUR -0.3 million); Net loss: EUR -1.6 million.

• EPS: EUR -0.10 (down from EUR -0.02).

• Equity ratio: 58.4%; Net debt/EBITDA: negative, indicating net cash position.

• Cash flow from operations: EUR 1.6 million (up from EUR 0.2 million).

Outlook and guidance

• 2025 revenue expected to be lower than 2024, but relative profitability is expected to improve.

• Strategic targets for 2025–2027: Adjusted EBITA margin of 10% by 2027, 10% organic revenue growth in 2026–2027, equity ratio above 50%, net debt/EBITDA below 2.

• Dividend policy: at least 30% of annual net profit to be distributed as dividends.