Exsitec (EXS) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw stable margins and adjusted EBITA/EBITDA of 44 MSEK, with growth driven by acquisitions and record order intake up over 40% year-over-year.

• Recurring software revenue grew 28% year-over-year, providing stability amid weaker consulting demand.

• Customer sentiment remains passive, with existing clients delaying upgrades but continuing to use core solutions.

• The trainee program remains a key recruitment channel, with 60 new hires planned for August and the 2024 cohort becoming profitable in Q2.

• Focused on IT solutions for over 5,500 medium-sized Nordic businesses across diverse industries.

Financial highlights

• Q2 net sales reached 235 MSEK (8% growth year-over-year); H1 net sales totaled 468 MSEK (11% growth year-over-year).

• Adjusted EBITA/EBITDA for Q2 was 44 MSEK (up 1% year-over-year); H1 adjusted EBITA was 90 MSEK (up 7%).

• Recurring net revenue from software LTM was 207 MSEK, up 28% year-over-year.

• Q2 earnings per share: 1.75 SEK (down 11% year-over-year); H1: 3.78 SEK (up 1%).

• Cash flow from operating activities Q2: 47 MSEK (up 12% year-over-year); H1: 85 MSEK (up 22%).

Outlook and guidance

• Focus remains on driving organic growth, especially through new sales, as existing customers remain passive.

• Strong order intake and increased leads provide optimism for future quarters.

• Financial goals: at least 15% annual net sales and adjusted EBITA per share growth, net debt below 2x EBITDA, and dividend payout of 20-40% of profit after tax.

• Consulting demand from existing customers remains subdued, but pent-up demand for upgrades and automation is expected to return.

• Consulting capacity is being aligned to current demand until market conditions improve.