Teleste (TLT1V) Q1 2025 earnings summary

Executive summary

• Orders received grew 21.5% year-over-year in Q1 2025, driven by Broadband Networks, especially in North America and Europe, while net sales declined 12.1% to EUR 32.2 million due to project timing and a shift in geographic mix.

• Profitability improved significantly year-over-year due to cost-saving measures and a leaner cost structure, with adjusted operating profit stable at EUR 1.5 million and IFRS operating profit improving from a loss.

• Earnings per share improved to EUR 0.03 from negative EUR 0.02 year-over-year.

• Cash flow from operations remained positive at EUR 1.5 million, though lower than the previous year's EUR 7.3 million, mainly due to increased working capital tied to North American expansion.

• Full-year outlook for 2025 remains unchanged, with results expected to be realized mainly in the second half.

Financial highlights

• Adjusted EBIT for Q1 was EUR 1.5 million, compared to a EUR 0.4 million loss the previous year; adjusted EBITDA was EUR 2.7 million, down 11.3% year-over-year, with margin stable at 8.4%.

• Earnings per share improved to EUR 0.03 from negative EUR 0.02 year-over-year.

• Headcount reduced by almost 9–10.7% year-over-year, contributing to lower costs.

• Other expenses and personnel expenses decreased by over 8%, further supporting profitability.

• Order book stabilized at EUR 123.2 million, with 49% of 2025 deliveries scheduled.

Outlook and guidance

• 2025 revenue expected between EUR 135–150 million; adjusted operating profit between EUR 4–7 million, with results weighted toward the second half.

• U.S. import tariffs are now a reality and may impact short-term profitability, but the effect is not expected to be significant.

• Long-term targets include average annual revenue growth of 10% and operating profit margin of 7–12% by 2030.