Webstep (WSTEP) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues fell 6.3% year-over-year to NOK 215.0 million, with EBIT stable at NOK 19.0 million and net profit up 5.3% to NOK 14.8 million.

• YTD 2025 revenues declined 1.7% to NOK 451.4 million, while EBIT rose 3.2% to NOK 50.3 million and net profit increased 4.6% to NOK 31.2 million.

• Maintained positive EBIT margin despite weak demand and soft market conditions, supported by skilled consultants, operational efficiency, and cost reductions.

• Launched new visual identity and branding during the 25th anniversary employee event.

• Secured major contracts with Statnett, Bane NOR, Norway Tax, and Norway Offshore Directorate.

Financial highlights

• Q2 EBIT margin improved to 8.9% from 8.3% year-over-year; YTD EBIT margin at 9.2% versus 8.8%.

• Net profit Q2 NOK 14.8 million; earnings per share NOK 0.57.

• Cash flow from operations Q2: NOK 18.8 million; YTD: NOK 42.2 million.

• Equity ratio at 54.0% as of June 30, 2025, up from 51.1% a year earlier.

• Revenue per FTE Q2: NOK 486.9k; EBIT per FTE Q2: NOK 43.1k.

Outlook and guidance

• Market outlook remains uncertain due to macroeconomic and geopolitical volatility, with limited visibility and slow private sector investment.

• Public sector less impacted, but energy market segments show contract scaling back and price pressure.

• Focus on maintaining premium pricing and competitive cost base; margin improvement expected with resumed top-line growth.

• Strategic focus on data, AI, and digitalisation services, with growing demand and new offerings.

• Consultant churn observed; hiring continues but headcount growth will take time.