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 delays in client decisions, with Denmark revenue dropping 40%.

• First negative quarterly EBITDA in several years, driven by lower revenue and investments in the new Solutions division, with a focus on returning to positive EBITDA by Q3 2025 through cost savings.

• International markets, especially the US and Netherlands, showed modest growth, and three new international contracts were signed, including two in the Energy sector.

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

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

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), with an EBITDA margin of -7.2%.

• Earnings per share (EPS) was DKK -0.25.

• Equity ratio stood at 47% and liquidity ratio at 137%.

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

Outlook and guidance

• 2025 revenue expected at DKK 70–75 million, representing -3% to +4% growth versus 2024.

• 2025 EBITDA forecasted at DKK 1–5 million, reflecting a decline of 4% to 81% compared to 2024, with management aiming for positive EBITDA by Q3 and for the full year.

• Cost savings and investment evaluations are underway to support profitability.

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