adesso (ADN1) Q2 2025 earnings summary

Executive summary

• Sales revenues grew 12% year-over-year to €709.5 million in H1 2025, driven by organic expansion and strong demand for digitalization services.

• EBITDA increased 34% to €37.2 million, with margin improving to 5.2% from 4.4% in H1 2024.

• Net loss narrowed to €-6.0 million from €-9.9 million, and EPS improved to €-0.88 from €-1.51 year-over-year.

• Employee headcount rose 7% to 10,794 FTEs, supporting business growth.

• The company reaffirmed its full-year guidance, expecting revenue of €1.35–1.45 billion and EBITDA of €105–125 million.

Financial highlights

• Domestic sales grew 14% while international sales rose 6% year-over-year.

• Gross profit increased 10% to €598.0 million; personnel costs up 10% to €493.7 million.

• Free cash flow was negative at -€80.8 million, down 61% year-over-year.

• Net working capital rose 10% to €226.0 million; equity ratio declined to 21.5%.

• Operating cash flow was €-44.2 million, mainly due to higher trade receivables and contract assets.

Outlook and guidance

• Full-year 2025 revenue forecast remains €1.35–1.45 billion, with EBITDA of €105–125 million and margin target above 7.6%.

• Earnings expected to be weighted toward H2 2025 due to more working days and increased IT spending, especially in the public sector.

• Management expects higher earnings in H2 2025, supported by order backlog and new opportunities in defense and infrastructure.

• IT services and software markets are expected to grow steadily, with sector-specific growth outpacing general economic trends.