Sitowise Group (SITOWS) Q1 2025 earnings summary

Executive summary

• Net sales declined by 6.5–7.6% year-over-year, mainly due to lower headcount, one less working day, and weak Swedish operations.

• Adjusted EBITDA/EBITA margin was 5.1%, down year-over-year, with operating profit turning negative at EUR -0.3 million.

• Finnish operations and Digital Solutions showed underlying improvement, while Swedish and Buildings segments significantly burdened results.

• Order book reached EUR 157 million, growing quarter-on-quarter for the first time in two years, though still 3.4% lower year-over-year.

• Net Promoter Score improved to 35 from 31 year-over-year.

Financial highlights

• Adjusted EBITDA/EBITA and operating profit declined, with cash flow from operating activities before financial items and taxes dropping to EUR 0.5 million from EUR 5.0 million.

• Net sales: EUR 48.1 million, down 6.5% year-over-year; result for the period: EUR -1.4 million.

• Net debt stable at EUR 56.6 million; leverage (net debt/adjusted EBITDA) increased to 6.0x from 3.8x.

• Cash flow modestly positive; liquidity remains strong.

• Number of FTEs: 1,740, down 7.6% year-over-year.

Outlook and guidance

• Market expected to remain mixed in 2025, with green transition, security, and digitalization supporting Infra and Digital Solutions.

• Buildings and Sweden segments to remain weak in H1, with gradual recovery expected in H2 2025; new residential construction recovery likely in 2026.

• No formal net sales or profitability guidance issued for 2025 due to market uncertainty.

• Second quarter will also have one less working day, impacting results.