Webstep (WSTEP) Q1 2025 earnings summary

Executive summary

• Revenue grew 2.9% year-over-year to 236.4 MNOK in Q1 2025, with EBIT up to 22.6 MNOK and EBIT margin improving to 9.6%.

• Regional offices delivered double-digit growth, especially in the energy sector.

• Major contract renewals and new agreements with Equinor, Aker Digital Alliance, Norges Bank, and Bane NOR.

• Dividend of NOK 2.30 per share approved, totaling NOK 62.3 million.

• Divestment of Swedish operations completed in 2024, focusing solely on Norway and implementing a cost reduction program.

Financial highlights

• EBITDA reached 26.9 MNOK (11.4% margin), net profit was 16.4 MNOK, and EPS was NOK 0.63, all up from Q1 2024.

• Net free cash flow was 22.6 MNOK, and equity ratio improved to 54.7%.

• Revenue per FTE increased to 534.0 TNOK, EBIT per FTE to 51.1 TNOK.

• Cash and cash equivalents at quarter-end were 101.4 MNOK; credit facility remained unutilized.

• Number of FTEs at period end: 444 (down from 448 year-over-year).

Outlook and guidance

• Market visibility remains limited due to macroeconomic and geopolitical uncertainty, with slower private sector investment.

• Public and energy sectors show resilience; digitalization trends and demand for data/AI services remain strong.

• Long-term goal of 10% EBIT margin and healthy top-line growth reaffirmed.

• Long-term digitalization trends in both public and private sectors support growth outlook.