Cancom (COK) Q1 2025 earnings summary

Executive summary

• Revenue declined 6.8% year-over-year to €410.5 million in Q1 2025, with net profit dropping to €3.2 million from €10.1 million.

• EBITDA fell 30.6% to €21.1 million, margin at 5.1% versus 6.9% last year.

• German segment revenue dropped 14.4% year-over-year, while international segment grew 8.3%.

• Macroeconomic headwinds and customer reluctance to invest impacted results, especially in Germany.

• Emphasis on AI-driven business models, digital resilience, and security services, including quantum-safe encryption and endpoint protection.

Financial highlights

• Revenue: €410.5 million (–6.8% year-over-year); EBITDA: €21.1 million (–30.6%); net profit: €3.2 million.

• Gross margin improved to 41.2% from 38.8% year-over-year.

• Cash flow from operating activities: €3.1 million, sharply down from €56.3 million in Q1 2024.

• Net cash at €134.7 million, down from €212.5 million in Q1 2024.

• CapEx in line with target at 1.0% of sales; YTD CapEx: €4.1 million.

Outlook and guidance

• 2025 revenue forecast: €1,700–1,850 million; EBITDA: €115–130 million; EBITA: €61–76 million.

• Management expects IT market demand to recover in H2 2025, driven by digitalisation and AI trends.

• No change to previous guidance; positive medium-term outlook based on long-term digitalisation trends.

• Management anticipates muted H1 2025 with gradual improvement in H2 2025.