adesso (ADN1) Q4 2025 earnings summary

Executive summary

• Achieved 14% organic sales growth in 2025, reaching EUR 1.47 billion, with strong profitable growth and a five-year average return on equity of 10.3%.

• EBITDA rose 30% to EUR 123.6 million, at the upper end of guidance, with all targets fully met.

• Germany remains the core market, contributing 84% of revenues, with strong sector diversification and no single sector or customer dominating.

• Maintained a diversified portfolio with over 11,000 employees and a broad international presence, including SmartShore centers for scalable expertise and pricing.

• Focused on expanding as a leading integrated IT company for sector-specific business processes in Europe, aiming to grow at least twice the market rate, with a sustainable operating margin and continuous dividend increases.

Financial highlights

• Sales increased from EUR 1,286 million to EUR 1,466 million year-over-year, with EBITDA margin improving to 8.4%.

• EBIT margin rose to 3.4% from 2.1% in 2024.

• Earnings per share reached EUR 3.83, a significant improvement.

• Dividend per share proposed at EUR 0.78, marking the thirteenth consecutive annual increase and totaling EUR 5 million.

• Net working capital increased 28% to EUR 199 million, while operating cash flow declined 28% to EUR 85.6 million and free cash flow dropped to EUR 1.5 million.

Outlook and guidance

• Revenue guidance for 2026 is EUR 1.6–1.7 billion (+9% to +16%), with EBITDA expected between EUR 130–150 million.

• EBIT margin expected to improve only slightly in 2026; mid-term margin target remains 11%-13%.

• Profitability expected to improve, aided by AI-driven development and two additional working days, though competition remains tense and hiring speed is reduced.

• Continued focus on organic growth, with no large-scale M&A planned.

• AI-driven modernization projects seen as a major growth opportunity, though productivity gains may pressure traditional business models.