TietoEVRY (TIETOS) Q2 2025 earnings summary

Executive summary

• Organic revenue declined 4% year-over-year in Q2 2025, reflecting continued soft market conditions, especially in the Create business.

• Adjusted operating margin (EBITA) was 9.4%, including a negative IFRS 5 impact and cost burdens.

• New CEO Endre Rangnes and leadership team appointed, focusing on execution, customer orientation, and growth.

• Cost optimization program launched, targeting EUR 115 million run-rate savings by end of 2026 and up to 1,250 personnel reductions.

• Non-cash impairment of EUR 80.4 million recorded for Banking platform development costs in Norway.

Financial highlights

• Q2 2025 revenue from continuing operations: EUR 463.1 million, down 3% year-over-year; organic growth -4%.

• Adjusted EBITA margin at 9.4%, down from 10.7% year-over-year.

• Operating cash flow was EUR 51 million; free cash flow EUR 20 million.

• Net loss for Q2: EUR -61.1 million; EPS: EUR -0.52; adjusted EPS: EUR 0.19.

• Net debt/EBITDA at 2.4x at end of Q2; net debt EUR 875 million.

Outlook and guidance

• Full-year 2025 organic growth expected between -2% and +1%; adjusted EBITA margin guidance at 12.0–13.0%.

• Cost optimization program targets EUR 115 million run-rate savings by end of 2026.

• Profitability outlook includes a negative impact of ~1.1 pp on adjusted margin due to IFRS 5 and transition costs.

• No market recovery expected in 2025; soft conditions to persist in Europe and the US.

• Salary inflation for the year expected at 4%-4.5%, slightly lower than prior year.