adesso (ADN1) Q2 2025 earnings summary

Executive summary

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

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

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

• Employee headcount rose 7% to over 10,700 FTEs, supporting business growth and recognized as a top employer.

• Full-year guidance reaffirmed, expecting revenue of EUR 1.35–1.45 billion and EBITDA of EUR 105–125 million.

Financial highlights

• Domestic sales grew 14% while international sales rose 6% year-over-year; Q2 revenue grew 13% to EUR 356 million.

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

• Free cash flow was negative at EUR -80.8 million, impacted by negative operating cash flow and CapEx.

• Equity ratio declined to 21.5% from 24.2% at year-end 2024.

• Net working capital rose 10% to EUR 226.0 million.

Outlook and guidance

• On track to achieve full-year revenue guidance of EUR 1.35–1.45 billion and EBITDA of EUR 105–125 million, with 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.