Etteplan (ETTE) Q2 2026 earnings summary

Executive summary

• Revenue declined 2.7% in Q2 and 3.7% in H1 2026 year-over-year, with profitability below expectations due to weak demand, slow customer decision-making, and persistent market uncertainty.

• Demand showed first signs of recovery late in Q2, especially in R&D, China (hours sold up 16% YoY), Finland, and the mining sector, while the automotive sector remained weak.

• AI-driven solutions expanded, included in all major new agreements, with revenue share rising to 6% (up from 4% YoY), though overall contribution remains limited.

• Financial guidance was adjusted downward, reflecting persistent risks and a weak first half.

• Non-recurring items and restructuring measures impacted profitability.

Financial highlights

• Q2 revenue: €88.9M (down 2.7% YoY); H1 revenue: €179.4M (down 3.7% YoY).

• Q2 EBITA: €5.5M (6.1% margin, -9.0% YoY); Q2 EBIT: €4.2M (4.7% margin, -4.4% YoY); Q2 EPS: €0.10 (flat YoY).

• H1 EBITA: €9.2M (5.1% margin, -22.3% YoY); H1 EBIT: €6.4M (3.5% margin); H1 EPS: €0.14 (down from €0.19 YoY).

• Q2 operating cash flow: €3.7M (down from €6.9M YoY); H1 cash flow: €7.8M (down from €12M YoY).

• Personnel at period end: 3,680 (down 4.9% YoY).

Outlook and guidance

• 2026 revenue guidance narrowed to €360–375M (previously €360–380M); EBIT guidance narrowed to €19–22M (previously €19–23M).

• Management expects improvement in H2 if demand remains at June levels or improves, but risks remain due to geopolitical uncertainty.

• Strategic targets for 2027: 35% revenue from AI-driven solutions (currently 6%) and €500M revenue (currently €355M rolling 12 months).