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TietoEVRY (TIETOS) investor relations material

TietoEVRY Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary22 Jul, 2025

Executive summary

  • Organic revenue declined 4% year-over-year in Q2 2025 amid soft market conditions, especially in the Create segment.

  • Adjusted EBITA margin was 9.4%, including a 1.3 pp negative impact from tech services/IFRS 5 costs.

  • Permanent CEO Endre Rangnes appointed, new leadership team onboarded to drive execution and customer focus.

  • Major cost optimization program launched, targeting €115M run-rate savings by end of 2026 and up to 1,250 personnel reductions.

  • Non-cash impairment of €80M recorded for legacy banking platform development costs in Norway.

Financial highlights

  • Q2 2025 revenue: €463M, down from €479M in Q2 2024; organic growth -4%.

  • Adjusted EBITA: €44M (9.4% margin), down from €51M (10.7%) year-over-year.

  • Operating cash flow at €51M; free cash flow at €20M, both down year-over-year.

  • Order backlog up 14% year-over-year and 9% sequentially, reaching €2,222M.

  • Net debt/EBITDA at 2.4x at Q2 end; net debt at €875M.

Outlook and guidance

  • Full-year 2025 organic growth expected between -2% and +1%; adjusted EBITA margin guidance at 12.0–13.0%.

  • Cost optimization activities to deliver €115M run-rate savings by end of 2026.

  • H2 2025 performance expected to improve, with Banking and Industry profitability above prior year, Create and Care below.

  • Market uncertainty and weak visibility persist; no market recovery expected in 2025.

  • Sparebanken court ruling could provide additional upside in Q3.

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Frequently asked questions

Founded in 1968, TietoEVRY Oyj works with customers to create digital services and operate IT infrastructures. It offers software solutions, including product development and delivery, as well as related services across industry sectors. The company operates through five business streams: Business Development, Application Services, Systems and Infrastructure Services, Telecom Services, and Data Management Services. Headquartered in Helsinki, Finland, TietoEVRY Oyj operates in countries globally.

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