Atea (ATEA) Q3 2025 earnings summary

Executive summary

• Gross sales in Q3 2025 reached NOK 12.3 billion, up 9.2% year-over-year, with IFRS revenue up 5.6% to NOK 8.4 billion, and net profit up 17.7% to NOK 226 million; EBIT rose 13.3% to NOK 348 million, with an EBIT margin of 4.1%.

• Strong demand across hardware, software, cloud, and services segments, with record-breaking quarterly results and positive currency effects.

• Denmark showed significant improvement, with a turnaround strategy yielding early positive results, though margins remain below Norway and Sweden.

• Gross margin improved to 29.8% from 29.5% last year, reflecting a higher proportion of software and improved hardware margins.

• Company achieved EcoVadis platinum sustainability rating for the sixth consecutive year, placing in the top 1% globally.

Financial highlights

• Group revenue (IFRS) was NOK 8.4 billion, up 5.6% year-over-year; gross profit increased 6.7% to NOK 2,514 million.

• Operating expenses rose 5.7% to NOK 2.2 billion; EBIT reached NOK 348 million, up 13.3%.

• Earnings per share for Q3 2025 was NOK 2.03, up from NOK 1.72; diluted EPS was NOK 2.00.

• Cash flow from operations was NOK 220 million, nearly double the prior year; free cash flow was NOK 136 million.

• Net financial position was negative NOK 438 million, with a net debt/EBITDA ratio of 0.2, and liquidity reserve at NOK 1,382 million.

Outlook and guidance

• Full-year 2025 gross sales expected at the top end of NOK 57–60 billion guidance, with EBIT in the middle of NOK 1,330–1,450 million range.

• Market for IT infrastructure expected to remain robust, though sales and revenue growth will slow due to tougher comparables.

• Product sales are expected to shift toward higher margin mix, and demand for services to remain strong, supporting gross margin.

• Solid order backlog and healthy market trends support positive Q4 outlook.

• Norway, Sweden, and Baltics expected to maintain strong momentum; Denmark to continue turnaround; Finland expected to return to growth.