PSI Software (PSAN) Q4 2025 earnings summary

Executive summary

• Achieved 9.5% revenue growth to €285.5M and 25.3% increase in new orders, returning to growth after prior contraction.

• Strategic transformation focused on SaaS, cloud-based solutions, and industrial AI, supported by a new partnership with Warburg Pincus.

• Adjusted operating result turned positive at €11.7M, but unadjusted EBIT remained negative due to restructuring and M&A costs.

• Major organizational changes and efficiency programs implemented, especially in Grid & Energy Management.

Financial highlights

• Revenues: €285.5M (+9.5% YoY); new orders: €322M (+25.3% YoY); order backlog: €158M (+3.9%).

• Adjusted EBIT: €11.7M (4.1% margin); unadjusted EBIT: €-21.0M (-7.3% margin); net result: €-31.6M.

• Recurring revenues grew 5.8% to €112.1M, representing 39.3% of total revenues.

• R&D expenses increased 26.5% to €57.7M (20.2% of revenues).

• Free cash flow improved to €13.5M, but below €15M target.

• Equity ratio declined to 24.2% from 35.1% due to negative net result.

Outlook and guidance

• Targeting ~10% growth in new orders and revenues, with adjusted EBIT margin around 4% for 2026.

• Recurring revenues expected to grow at least 5%, nearing 40% of total revenues.

• Grid & Energy Management: >10% revenue growth, adjusted EBIT margin just under 10%.

• Process Industries & Metals: ~10% revenue growth, up to 4% adjusted EBIT margin.

• Discrete Manufacturing: stable revenues, negative adjusted EBIT margin (~-20%) due to investments.

• Logistics: ~10% revenue growth, slightly positive adjusted EBIT margin.

• Negative free cash flow up to €-10M expected due to one-time takeover payments.