NNIT (NNIT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was DKK 464.1 million, with organic growth at -0.8%, reflecting flat performance amid deteriorating market conditions and heightened macroeconomic and geopolitical uncertainty.

• Operating profit excluding special items declined to DKK 18 million (margin 3.9%), down from 5.2% in Q1 2024.

• Workforce was reduced by around 100 employees in Q1 2025 to align capacity with demand and protect profitability, with further restructuring and cost-saving measures implemented.

• Important new contracts were secured post-quarter in Denmark and the U.S., including a four-year public sector deal.

• Market uncertainty led to customer hesitation, project postponements, and mixed regional performance.

Financial highlights

• Revenue for Q1 2025 was DKK 464.1 million, up 0.2% year-over-year; organic growth was -0.8%.

• Group operating profit (excluding special items) was DKK 18 million, margin 3.9% (Q1 2024: 5.2%).

• Special items totaled DKK 25–25.3 million in Q1, mainly restructuring costs.

• Gross margin for Q1 2025 was 25.8%, down from 27.1% in Q1 2024.

• Free cash flow was DKK -73 million, improved from DKK -166 million in Q1 2024.

Outlook and guidance

• Full-year 2025 organic growth guidance lowered to 0%-5% (previously 7%-10%) due to ongoing macroeconomic and geopolitical uncertainty.

• Group operating profit margin (excluding special items) maintained at 7%-9%.

• Special items for 2025 expected up to DKK 69 million, mainly from restructuring.

• No M&A activity assumed in 2025; outlook assumes no further market deterioration.