Wirtek (WIRTEK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 14% year-over-year, mainly due to the completion of a major Danish client engagement and soft market conditions in Denmark, while international markets, especially the US and Netherlands, showed modest growth.

• The Energy segment accounted for 48% of total revenue, growing 67% year-over-year.

• EBITDA turned negative for the first time in several years due to lower revenue and investments in the new Solutions division.

• A new strategic direction was launched, splitting operations into Services and Solutions divisions; Solutions requires short-term investment before break-even.

• Core business remains strong, with a robust sales pipeline and international growth.

Financial highlights

• Q1 2025 revenue was DKK 15.5 million (TDKK 15,537), down 14% year-over-year.

• EBITDA was negative DKK 1.1 million (TDKK -1,113), compared to positive DKK 1.8 million last year; EBITDA margin at -7.2%.

• EPS was -DKK 0.25, reflecting negative profitability.

• Equity ratio at 47%, with equity at TDKK 17,945, down 9% year-over-year.

• Cash holdings increased to TDKK 4,734, up 38% year-over-year.

Outlook and guidance

• 2025 revenue expected between DKK 70–75 million, representing -3% to 4% growth.

• 2025 EBITDA forecasted at DKK 1–5 million, reflecting negative EBITDA growth of 81% to 4% due to continued investments.

• Management aims to return to positive EBITDA by Q3 2025 and for the full year.

• Cost savings and investment evaluations underway to return to positive EBITDA.

• Uncertainty in market conditions persists, but expectations for 2025 are maintained.