Asseco South Eastern Europe (ASE) H2 2025 earnings summary

Executive summary

• Solid operating profit (EBIT) growth in 2025, adjusted for one-offs, with strong performance in dedicated solutions and banking, especially in the energy and utility sectors, and better-than-expected banking results.

• Payment segment faced slowdowns, notably in Turkey due to major clients moving in-house, and write-offs in India and UAE; e-commerce dropped, but direct merchant payment lines and POS/ATM businesses grew.

• Cash generation and liquidity improved significantly compared to 2024, with strong EBITDA to cash conversion and higher free cash flow.

Financial highlights

• FY 2025 revenue rose 9% year-over-year to €424.5m; operating profit up 16% to €59.4m; EBITDA up 16% to €86.7m.

• Q4 2025 revenue grew 13% year-over-year, operating profit up 62%, and net profit up 23%.

• Major one-offs included EUR 3.7 million goodwill write-off (India/Dubai), EUR 3 million put option liability restatement (Bosnia), and EUR 1 million additional tax (Pillar Two, mainly Bosnia).

• Excluding one-offs, net profit growth aligns closely with operating profit growth, around 60% year-over-year in Q4.

• Free cash flow for 2025 was €43.4m, up from €2.5m in 2024.

Outlook and guidance

• 2026 backlog dynamics: 8% for Q1, 6% for the full year, with stronger growth in dedicated solutions and banking, weaker in payments (Turkey impact).

• Expecting high single-digit or low double-digit operating profit growth in 2026, driven by both organic growth and efficiency improvements.

• 2026 revenue forecasted to grow 3% to €156.3m for Payten, with margin improvement expected.

• Backlog for 2026 up 5% year-over-year, indicating continued growth momentum.

• Pipeline includes potential acquisitions of small to mid-sized companies, with 2-3 possible in 2026.