Asseco Business Solutions (ABS) Q1 2025 earnings summary

Executive summary

• Operating revenues for Q1 2025 reached PLN 108.1 million, up 8.3% year-over-year, driven by higher sales of proprietary products in both domestic and foreign markets.

• Net profit increased by 18.2% to PLN 28.4 million, reflecting improved profitability and cost control.

• EBITDA rose 13.5% to PLN 40.0 million; EBIT grew 9.9% to PLN 30.2 million year-over-year.

• Maintained robust profitability with EBITDA margin at 37.0% and EBIT margin at 28.0% in Q1 2025.

• Acquisition of Tax Order Sp. z o.o. (60% stake) in March 2025 contributed to an increase in goodwill and group consolidation.

Financial highlights

• Gross margin on sales improved to 42.1% from 39.8% year-over-year.

• Net profit margin improved to 26.3% in Q1 2025 from 24.1% in Q1 2024.

• Cash and cash equivalents at period end were PLN 62.9 million, up from PLN 40.9 million at 31 December 2024.

• Working capital at 31 March 2025 was PLN 63.6 million, nearly double the level at year-end 2024.

• No bank loans or credit drawn; open credit lines available up to PLN 70 million.

Outlook and guidance

• Backlog at end of Q1 2025 reached PLN 345.3 million, up 8.7% year-over-year, supporting future revenue visibility.

• Management Board recommends a dividend of PLN 3.3 per share for 2025, pending shareholder approval.

• Management considers the financial situation stable with strong production potential and market position.

• Key external risks include the war in Ukraine, interest rates, currency risk, and macroeconomic conditions in Poland and the EU.

• Internal focus remains on product quality, sales effectiveness, and talent retention.