Solwers (SOLWERS) Q2 2025 earnings summary

Executive summary

• Revenue grew 6% year-over-year in H1 2025 to EUR 42.3 million, with Finland showing improved stability and Sweden experiencing mixed results; the group operates 27 consultancy companies in Finland, Sweden, and Poland, with 700 experts and EUR 78 million revenue at end of 2024.

• Profitability declined, with EBITA margin at 4.3% (down from 8.2%), EBIT margin at 0.4% (down from 4.9%), and net profit turning negative at EUR -0.6 million; EPS was EUR -0.06 (vs. EUR 0.07 last year).

• Growth platform emphasizes light integration, collaboration, and cross-selling among subsidiaries.

• Largest clients include public infrastructure agencies, with a balanced mix of public and private sector projects.

• CEO transition announced: Johan Ehrnrooth to succeed Stefan Nyström in November 2025.

Financial highlights

• H1 2025 revenue: EUR 42.3 million (up 6% year-over-year); Q2 2025 revenue: EUR 21.9 million (up 5.9%).

• H1 2025 EBITA: EUR 1.8 million (4.3% margin), down from EUR 3.3 million (8.2%) in H1 2024; EBIT margin dropped to 0.4% from 4.9%.

• Net profit for H1 2025 was negative at EUR -0.6 million (down from EUR 0.8 million); EPS at EUR -0.06.

• Net cash flow from operating activities was positive at EUR 0.5 million; cash balance at period end was EUR 11.2 million.

• Dividend paid: EUR 0.024 per share (down from EUR 0.064).

Outlook and guidance

• Market uncertainty persists, especially in Sweden, with investment delays in residential, commercial, and some industrial sectors; recovery expected to strengthen towards end of 2025, but timing remains uncertain.

• Order backlog and billing rates improved, but margin pressure continues due to price competition.

• Focus for 2025 is on profitability improvement, cost cutting, organic growth, and selective acquisitions.

• Mid-term targets: revenue growth over 20% (12 months), EBITA margin over 12%, equity ratio over 40%.