adesso (ADN1) Q1 2025 TU earnings summary

Executive summary

• Achieved 11% organic sales growth to EUR 353.4 million in Q1 2025, outperforming peers in a challenging macroeconomic environment.

• Maintained a headcount of over 10,400, with a 5–6% year-over-year increase and low attrition rate (~8%), supporting operational scalability.

• Operating result and EBITDA remained stable at EUR 17.8 million, with margin subdued by higher personnel and material costs.

• Focused on IT services (90% of sales) and industry-specific solutions, with a diversified portfolio across insurance, banking, health, public, automotive, manufacturing, retail, and utilities.

• Consolidated earnings for Q1 2025 were negative at EUR -4.1 million, down 23% year-over-year, mainly due to increased depreciation and financial expenses.

Financial highlights

• Revenue grew 11% year-over-year to EUR 353.4 million, with 84% generated in Germany, which saw 13% growth.

• EBITDA margin declined to 5.1% from 5.6% year-over-year, as EBITDA grew only 1% year-over-year.

• Earnings per share were EUR -0.54, down from EUR -0.49 in Q1 2024.

• Personnel costs rose 9% due to increased staff and normal salary increases.

• Free cash flow and operating cash flow were negative in Q1 2025, reflecting higher investments, lease repayments, and contract assets.

Outlook and guidance

• Guidance for 2025 confirmed: revenue EUR 1.35–1.45 billion, EBITDA EUR 105–125 million.

• Margin improvement and majority of earnings expected in H2 2025, driven by higher utilization, more working days, and sector recovery.

• EBITDA margin target of 8%+ remains on track, with profitability measures expected to yield a slightly improved margin over the year.