Atea (ATEA) Q2 2025 earnings summary

Executive summary

• Q2 2025 gross sales reached NOK 16.8 billion, up 14.4% year-over-year, with strong growth across all business lines and IFRS revenue at NOK 9.1 billion, up 9.1%.

• EBIT increased by 10.4% to NOK 268 million, and net profit rose 13.3% to NOK 157 million compared to Q2 2024.

• Organic growth in constant currency was 10.0%, reflecting robust underlying business momentum.

• H1 2025 gross sales totaled NOK 30.0 billion, up 15.3% from last year, with EBIT at NOK 549 million, up 10.1%.

• The company maintained its position as a market leader in the Nordic and Baltic IT infrastructure sector, with about 70% of sales to the public sector.

Financial highlights

• Hardware sales grew 11%, software sales surged 19.6%, and services sales increased 8.9% year-over-year.

• Gross profit for Q2 2025 was NOK 2.8 billion, up 5.1% year-over-year; gross margin declined to 30.4% from 31.5%.

• Personnel and operating expenses grew 4.5% to NOK 2.5 billion; EBIT margin remained at 2.9%.

• Cash flow from operations was an outflow of NOK 111 million, impacted by higher school PC inventory; free cash flow was negative NOK 216 million.

• Net debt increased to NOK 440 million as of June 30, 2025, with a net debt/EBITDA ratio of 0.2, well within loan covenants.

Outlook and guidance

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

• Market for IT infrastructure expected to grow 6–11% in 2025 in the Nordic and Baltic regions.

• EBIT improvement anticipated in Norway, Sweden, Baltics, and turnaround in Denmark and Finland.

• Key growth drivers include increased defense spending, cybersecurity investments, AI infrastructure upgrades, and a major PC refresh cycle due to Windows 10 end-of-life.

• No material impact from macroeconomic factors or tariffs; large public sector customer base provides stability.