Bechtle (BC8) Q2 2025 earnings summary

Executive summary

• Business volume rose 2.9% year-over-year in H1 2025, reaching €3,892.6m, with Q2 up 5.1% and a positive trend in international and German public sector markets.

• Revenue for H1 2025 declined 1.0% to €2,948.2m, impacted by a higher software share and cautious SME investment, especially in Germany and France.

• Gross margin reached a historic high of 17.9% in Q2, supported by strong project, software, and cloud business, despite cost pressures.

• EBIT and earnings declined year-over-year, but Q2 showed improvement over Q1, and the Executive Board confirmed the full-year forecast.

• Workforce stood at 15,608 employees at the end of Q2 2025, up 2% year-over-year, mainly due to acquisitions and 0.5% organic growth.

Financial highlights

• Q2 2025 business volume grew 5.1% year-over-year to €1,925m; organic growth was 3.4%.

• Revenue in Q2 2025 was €1,461m, down 2.8% year-over-year; gross margin stable at 17.9%.

• EBIT margin in Q2 2025 was 3.9%, down from 5.6% in Q2 2024; EBITDA margin dropped to 6.9%.

• Operating cash flow in Q2 2025 was €45.2m, with cash and cash equivalents at €522m as of June 30, 2025.

• Equity ratio improved to 47.3% (prior year: 45.4%).

Outlook and guidance

• 2025 forecast confirmed: business volume expected to grow 0% to +5%, revenue -3% to +3%, EBT -5% to +5%.

• EBT margin expected to be slightly lower or consistent with prior year; significant upturn anticipated in H2 2025, especially from September.

• Public sector business in Germany and international markets expected to drive growth; major impact from German infrastructure funds expected in 2026.

• Continued M&A activity in Europe expected to support growth.

• Demand from SMEs may increase due to the switch to Windows 11.