Bechtle (BC8) Q1 2025 earnings summary

Executive summary

• Q1 2025 was marked by subdued performance due to economic and political uncertainty, with revenue declining 2.8% year-over-year to €1,461 million and EBIT dropping by 31.0%, mainly impacted by higher personnel costs and lower rebates.

• International revenue rose 1.3%, while German revenue fell by 2.8%, reflecting investment reluctance among German SME and public sector clients.

• Incoming orders grew 2.9% to €2,016 million, and order backlog increased 1.9% to €2,605 million compared to year-end 2024.

• The company remains optimistic about a recovery in H2 2025, supported by high framework agreement volumes and initial positive signals in March and April.

• Workforce grew organically by 0.7% year-over-year, reaching 15,729 employees at the end of Q1 2025, mainly due to acquisitions.

Financial highlights

• Group revenue for Q1 2025 was €1,461 million, down from €1,503 million in Q1 2024.

• EBIT for Q1 2025 was €37.5 million, a 31.0% decrease from €54.3 million in Q1 2024; EBIT margin dropped to 2.6%.

• EBITDA decreased 17.9% year-over-year to €95.7 million; EBT dropped 32.5% to €55.3 million.

• Operating cash flow was negative at -€127.1 million, consistent with seasonal patterns, and total liquidity stood at €616 million.

• Personnel costs increased by €18 million year-over-year, driven by acquisitions, wage hikes, and higher social security thresholds.

Outlook and guidance

• Guidance for 2025 is maintained: business volume growth of 0–5%, revenue change of -3% to +3%, and EBT change of -5% to +5%.

• A broad-based recovery is not expected until H2 2025; Q2 is anticipated to remain under pressure, especially on the bottom line.

• Achieving guidance will require strong top-line growth in H2, with historical precedent for such performance.

• Positive effects from the €500 billion German infrastructure fund and the new Ministry for Digitalization are expected mid- to long-term, not in 2025.