Atea (ATEA) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered record gross sales of NOK 13.3 billion, up 16.4% year-over-year, and EBIT of NOK 281 million, up 9.8%, marking the best Q1 in company history.

• All business lines and geographies contributed to growth, with double-digit increases in hardware, software, and services sales.

• Net financial position improved to NOK 250 million, a NOK 367 million increase year-over-year.

• Net profit after tax was NOK 162 million, down from NOK 192 million last year, mainly due to negative currency effects.

• Recognized for sustainability, the company retained top global rankings in environmental and social performance.

Financial highlights

• Gross sales rose 16.4% year-over-year to NOK 13.3 billion; organic growth in constant currency was 13.9%.

• IFRS revenue increased 12.5% to NOK 8.6 billion; gross profit up 5% to NOK 2,682 million.

• Gross margin declined to 31.4% from 33.6% due to a higher share of hardware and third-party services.

• Operating expenses grew 4.4% to NOK 2,401 million, with lower headcount offset by higher variable compensation and inflation.

• Net financial expenses were NOK 72 million, up from NOK 10 million, mainly due to adverse currency movements.

Outlook and guidance

• Full-year 2025 guidance: gross sales of NOK 57–60 billion (6–11% growth), EBIT of NOK 1,330–1,450 million (10–20% growth before restructuring costs).

• Growth expected to exceed industry average, driven by new frame agreements, Windows 10 end-of-life PC refresh, increased public and defense sector investments, IT security, and AI adoption.

• Market for IT infrastructure in the Nordics and Baltics expected to grow 6–10% in 2025.

• Plans for modest staff increase, but average 2025 headcount to remain below 2024.

• AI and cybersecurity seen as long-term growth drivers; AI adoption still in early stages among customers.