Atea (ATEA) investor relations material

Executive summary

• Gross sales in Q3 2025 reached NOK 12.3 billion, up 9.2% year-over-year, with EBIT at NOK 348 million, up 13.3%, and net profit up 17.7% to NOK 226 million, marking another record quarter.

• Strong demand was seen across all business lines and nearly all countries, with hardware, software/cloud, and services all contributing to growth.

• Gross margin improved to 29.8% from 29.5% last year, reflecting a higher software revenue mix and improved hardware margins.

• Currency fluctuations contributed +2.1% to group sales growth in Q3 2025.

Financial highlights

• Revenue (IFRS) was NOK 8.4 billion, up 5.6% year-over-year; gross profit increased 6.7% to NOK 2,514 million.

• Hardware sales rose 5.7%, software and cloud sales surged 17.1%, and services sales grew 6.0% year-over-year.

• Earnings per share for Q3 2025 was NOK 2.03, up from NOK 1.72; diluted EPS was NOK 2.00.

• Cash flow from operations was NOK 220 million, with free cash flow at NOK 136 million, both significantly higher than the prior year.

• Gross margin improved due to better hardware margins and a higher software revenue mix.

Outlook and guidance

• Full-year 2025 gross sales expected at the top end of NOK 57–60 billion guidance; EBIT expected in the middle of NOK 1,330–1,450 million range.

• Solid order backlog and healthy market trends support guidance; strong Q4 cash flow anticipated.

• Product sales are expected to shift toward higher margin mix, and demand for services to remain strong, supporting gross margin.

• Company expects to grow market share and increase operating profit through revenue growth, higher margin products/services, and cost control.

• Norway, Sweden, and the Baltics expected to maintain earnings momentum; Denmark's turnaround to continue; Finland forecasted to return to growth in Q4.