Itera (ITERA) Q2 2026 earnings summary

Executive summary

• Achieved 7% revenue growth in constant/local currency (4% reported), driven by operational improvements, higher utilization, and lower overhead costs.

• Adjusted EBIT margin rose to 6.8% from 2.3% year-over-year, reflecting improved profitability.

• Cloud & Application Services segment delivered 28% gross profit growth, supporting margin expansion and scalability.

• AI-driven demand is accelerating, shifting from experimentation to enterprise-wide implementation and fueling modernization, cloud, and managed services.

• Divested non-core recruitment business and wrote off Icelandic receivables as part of strategic focus.

Financial highlights

• Q2 2026 operating revenue: NOK 210.2 million, up 7% in constant currency (NOK 202.9 million in Q2 2025).

• Adjusted EBIT margin: 6.8% (Q2), up from 2.3% last year; adjusted EBIT at NOK 14.3 million (up 210%).

• Adjusted EBITDA margin: 10.6% (Q2 2025: 6.2%), adjusted EBITDA NOK 22.4 million.

• Operational cash flow: NOK 18.6 million in Q2.

• Non-recurring items (divestment, receivables write-off) impacted EBIT by NOK 8.6 million in Q2.

Outlook and guidance

• No further significant one-off costs expected in Q3 and Q4.

• Market remains cautious but is improving in AI-driven modernization, data platforms, cloud, and managed services.

• AI and Agentic AI are key growth drivers, accelerating modernization and scalable IP-based offerings.

• Focus remains on profitable growth, cost discipline, cash flow, and operational resilience.