Sitowise Group (SITOWS) Q3 2025 earnings summary

Executive summary

• Infra and Digital Solutions delivered above-target profitability and outperformed the market, with digital software services growing 15% year-over-year and representing one-third of Digi's net sales.

• Finnish operations maintained positive momentum, while Swedish operations significantly reduced group profitability but are positioned for a turnaround after improvement actions.

• Group net sales for Q3 decreased by 3.2% year-over-year to EUR 40.4 million, with adjusted EBITDA/EBITA margin at 4.2%.

• Order intake rose over 20% year-over-year, totaling EUR 41.7 million, but the order book, while up quarter-on-quarter, decreased 3.5% year-over-year to EUR 149 million.

• Group profitability was more than halved due to Sweden's underperformance, despite improvements.

Financial highlights

• Infra net sales grew over 4% year-over-year and now represent 39% of group net sales, driven by green transition and industrial projects.

• Buildings net sales declined nearly 8% year-over-year and now account for 28% of group sales; full-time employees in this segment dropped 14% year-over-year.

• Digital Solutions net sales grew slightly, with product business up 15% year-over-year and now one-third of Digi net sales; ARR up 15%.

• Sweden segment net sales fell nearly 20% year-over-year, now contributing 12% of group sales; business remains loss-making but utilization rates are improving.

• Cash flow from operating activities before financial items and taxes was negative in Q3 due to seasonality and weaker profitability, at EUR -2.9 million.

Outlook and guidance

• Infra and Digital Solutions markets expected to remain mixed but stable, supported by green transition, security, and digitalization; Buildings and Sweden segments to stay weak with slow recovery, potentially materializing at scale only in 2027.

• Swedish construction market recovery anticipated in 2026; no net sales or profitability guidance issued for 2025 due to market uncertainty.

• Focus remains on growth in sustainability, energy, industry, defense, security, and product business, with continued efficiency improvements via AI and computational design.

• Ambitious goal to double Digi business by 2030, with SaaS/product business targeted to be half of Digi.