Sitowise Group (SITOWS) Q2 2025 earnings summary

Executive summary

• Net sales declined by 2.1% year-over-year in Q2 2025, with Finnish operations stable and Infra and Digital Solutions segments delivering strong growth and above-target profitability, while Buildings and Sweden remained weak but showed operational improvements.

• Operating profit was €1.0 million in Q2, matching or slightly below last year, with cash flow from operations improving to €7.2 million.

• Order book at quarter-end was €148 million, down from €162 million year-over-year, with strong Infra and Digital Solutions performance but declines in Buildings and Sweden.

• Sweden's turnaround actions are ongoing, with early signs of improvement but no visible financial impact yet.

• Structural engineering businesses in Finland and Sweden showed year-on-year improvement, supported by adjustment measures and active sales.

Financial highlights

• Q2 2025 net sales were €49.8 million, down 2.1% year-over-year; adjusted EBITA margin improved to 5.1% (from 5.0%); adjusted EBITA was €2.5 million.

• Cash flow from operating activities improved to €7.2 million in Q2, but H1 cash flow declined due to lower results.

• Net debt/adjusted EBITDA increased to 5.9x (from 4.3x year-over-year); equity ratio at 43.1%.

• Result for the period was -€0.4 million in Q2; EPS was -€0.01.

• Order book at quarter-end was €148 million.

Outlook and guidance

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

• Buildings market believed to have bottomed out, but recovery will be slow; new residential construction recovery expected in 2026.

• Swedish construction market recovery anticipated in H2 2025 or 2026, with some early positive signs.

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

• Cost inflation, currency fluctuations, and financing expenses expected to impact performance.