NNIT (NNIT) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were below expectations, with revenue and profitability impacted by geopolitical turmoil, industry slowdown, and customer caution, especially in life sciences.

• Leadership is focused on restoring growth and profitability through operational and strategic initiatives, including a sharpened go-to-market approach, cost reductions, and accelerated AI product offerings.

• Two new AI platforms, Lumina and Alera, were launched to strengthen offerings in regulated industries and public sector, receiving positive customer feedback.

• Special items, mainly restructuring costs, totaled DKK 8.3 million, significantly lower than last year.

• Free cash flow improved to DKK 41 million, up DKK 114 million year-over-year, driven by lower costs, improved receivables, and completed earn-out payments.

Financial highlights

• Q1 2026 revenue was DKK 422.5 million, a reported decline of 9% and constant currency decline of 7.3% compared to Q1 2025.

• Group EBIT excluding special items was DKK 1.1 million (0.3% margin), down from DKK 18.0 million (3.9%) last year.

• EBIT including special items was DKK -7.2 million (margin -1.7%).

• Gross margin declined to 20.1% from 25.8% year-over-year.

• Free cash flow improved to DKK 41 million from negative DKK 73 million in Q1 2025.

Outlook and guidance

• 2026 constant currency revenue growth outlook revised from 0%-5% to single-digit negative due to weak Q1 and lower order backlog.

• EBIT margin guidance (excluding special items) lowered from 6%-9% to 4%-7%.

• Special items expected below last year's DKK 83 million.

• Outlook assumes no further macroeconomic/geopolitical deterioration and no M&A activity.

• Cost-saving and efficiency initiatives to partly offset lower revenue.