TietoEVRY (TIETOS) Q4 2025 earnings summary

Executive summary

• 2025 was a transformative year marked by strong Q4 profitability, major structural and leadership changes, portfolio simplification, and a renewed strategy focused on profitable growth and industry leadership in Europe.

• Four strategic priorities were executed: strengthening client relationships, simplifying the core, selective international expansion, and resetting the cost base.

• AI adoption, sustainability, and workplace recognition were emphasized, with notable achievements in climate action.

• The company is well positioned to deliver on 2028 targets, focusing on consistent performance and stakeholder confidence.

• Major portfolio changes included divestments (Tech Services, Bekk Consulting) and targeted acquisitions in Spain to support European expansion.

Financial highlights

• Q4 2025 revenue was EUR 464.2 million, down 2% year-over-year; full-year revenue was EUR 1,852.3 million.

• Adjusted EBITA/EBITDA improved to EUR 75.1 million (16.2% margin), up nearly 4 percentage points from Q4 2024.

• Order backlog increased 13% year-over-year, supporting future revenue visibility.

• Operating cash flow in Q4 was EUR 103 million; net debt/EBITDA at 2.2x.

• Dividend of EUR 0.88 per share proposed, with a EUR 150 million share buyback program launched.

Outlook and guidance

• 2026 organic growth expected between -2% and 0%, with adjusted EBITA margin guidance of 14.8–15.8%.

• Excluding legacy contract runoffs, underlying growth is guided at +1% to +3%.

• Cost optimization program target increased to EUR 130 million, with EUR 95 million delivered by end of Q4 2025.

• All business units expected to exceed prior year profit levels in Q1 2026; market environment expected to remain soft, especially in consulting.

• Long-term targets (2026–2028): annual revenue growth over 5% (CAGR), adjusted EBITA margin over 16%, net debt/EBITDA below 2, and dividend payout of 60–80% of net profit.