Sitowise Group (SITOWS) Q1 2026 earnings summary

Executive summary

• Net sales grew 1.8% year-on-year to EUR 49 million, with slightly positive adjusted organic growth after a period of decline, driven by improved sales execution and capacity management.

• Infra delivered strong growth and profitability, Digital Solutions outperformed IT market peers, and Sweden showed net sales growth but remained loss-making.

• Project-related write-downs in Buildings impacted net sales and profitability, following a thorough portfolio review.

• Strategy was updated with new midterm financial targets, focusing on organic growth, profitability, and debt reduction.

• Major management changes included new CEO, CFO, CTO, and business area heads appointed in Q1.

Financial highlights

• Net sales increased to EUR 49 million (+1.8% year-on-year), supported by strong Infra growth and improved performance in Sweden.

• Adjusted EBITDA margin was 3.8%; excluding Buildings write-downs, profitability would have improved year-on-year.

• Utilization rate rose to 73.2%, up year-on-year across all business areas.

• Operating profit reached break-even (EUR 0.0 million), up from a loss last year.

• Net debt to EBITDA leverage improved to 4.5, with net debt decreasing year-on-year.

Outlook and guidance

• Infra and Digital Solutions markets expected to remain stable, supported by green transition, security, and digitalization trends.

• Buildings and Sweden to stay soft, with broader construction market recovery in Buildings expected earliest in 2027; data centers and renovation as growth areas.

• No financial guidance for 2026 due to uncertainty in construction market recovery.

• AI and automation seen as key drivers for efficiency and new service development.

• Medium-term targets: organic growth above market, adjusted EBITDA/EBITA margin above 10%, net debt/EBITDA below 3.