adesso SE / DE000A0Z23Q5

  * Revenue growth of 12% to EUR 709.5 million in the first half of 2025 * EBITDA up 34% to EUR 37.2 million after six months * Capacity utilisation improved compared to previous year and slight recovery in product business * Further increase in profitability expected in the second half of the year * Full-year forecast for sales and earnings confirmed   With the publication of its 2025 half-year report today, adesso SE believes it is on track to achieve its own growth targets for sales and operating profit (EBITDA) for the year as a whole. Demand for adesso's digitalisation services remained at a good level, with the result that capacity utilisation of its own employees improved compared with the first half of the previous year. This was partly due to the reduced momentum in new hires. In the second quarter of 2025, sales increased by 13% to EUR 356.1 million, and operating earnings nearly doubled to EUR 19.3 million (Q2 2024: EUR 9.9 million) compared to the previous year, partly as a result of license income in the product business. Cumulative sales increased by 12% to EUR 709.5 million, exclusively through organic growth. At EUR 37.2 million, earnings for the first half of 2025 were 34% higher than in the previous year (EUR 27.7 million). The number of full-time equivalents (FTE) increased by 7% to 10,794 (previous year: 10,101) as of the reporting date, which is still significantly below the rate of revenue growth. In line with demand, the material usage ratio has not yet declined compared to the first quarter of 2025, mainly due to the addition of external employees and partners in projects. While personnel expenses, adesso's largest cost item, grew disproportionately to revenue at 10%, and other operating expenses grew disproportionately at 4%, material expenses rose disproportionately at 26%. A moderate increase in hiring momentum over the course of the year should counteract this effect. As forecasted, investment appetite in the insurance product sector is expected to improve, which should gradually reduce the ongoing negative impact of the IT Solutions segment on earnings. Initial license revenues in the second quarter of 2025 support this assessment. At the same time, digitalisation services met with growing demand in all of adesso's core industries, with the exception of the particularly cyclical automotive sector. This is offset by slightly clouded general economic prospects, which could also have an indirect impact on adesso's business. Based on the business performance to date, the order backlog, and additional opportunities arising from investments in defense and infrastructure, as well as the seven additional working days in the second half of 2025 (one more working day than in the second half of 2024), the Executive Board confirms its full-year guidance for sales and earnings. Accordingly, sales revenues are expected to increase to between EUR 1.35 billion and EUR 1.45 billion in 2025, with EBITDA reaching between EUR 105 million and EUR 125 million.   As Germany's largest IT service provider, adesso continues to see high demand for its industry-specific consulting and software development services. As a result, sales in all core industries except automotive grew strongly in some cases compared with the previous year. While the healthcare and utilities sectors performed particularly well, with growth of 27% and 22% respectively, the automotive sector recorded a decline of almost 7%. In the public sector, the largest core sector in terms of revenue, the catch-up effects originally expected due to budget approvals after the federal elections were slow to materialise. Nevertheless, growth of 9% to EUR 109.1 million was achieved here after the first half of 2025. Even though adesso expects growth to accelerate in the further course of the year, additional impetus from the German government's investment package is not expected before the end of 2025. Although revenue growth was achieved primarily in the IT Services segment, revenues at adesso insurance solutions also developed positively, especially in the second quarter. License agreements in the low single-digit million euro range with two insurance companies also contributed to this, which overall reduced the burden from the product business. The 14% revenue growth achieved is mainly attributable to the German market. Revenues abroad increased by 6%. Within the first half of the year, revenues of EUR 353.4 million were generated in the first quarter and EUR 356.1 million in the second quarter (previous year: EUR 317.1 million and EUR 314.0 million) This corresponds to an acceleration in the pace of growth from 11% in the first quarter to 13% in the second quarter compared to 2024. Due to the stronger second half of the previous year and the more moderate pace of hiring, momentum is expected to slow slightly in the second half of the year. EBITDA improved significantly in the second quarter compared to the weaker prior-year period, rising by 95% to EUR 19.3 million. Cumulative EBITDA for the first half of the year thus improved by 34% to EUR 37.2 million (previous year: EUR 27.7 million). This corresponds to an EBITDA margin of 5.2% after 4.4% in the previous year. The progress made in increasing profitability is primarily attributable to higher utilisation of the company's own employees, with other operating expenses rising at a rate below that of sales, license revenues, and a decreasing burden from the product business. A program is also being pursued to analyse and implement price adjustments even more consistently. In the first half of 2025, the number of full-time equivalents rose by 6% on average for the period. As a result, personnel expenses increased by 10%, which was less than proportional to revenue, to EUR 493.7 million (previous year: EUR 449.6 million). This corresponds to a moderate 4% increase in personnel costs per FTE, with annualised gross profit per FTE also increasing by 4% compared to the same period last year, from EUR 109 thousand to EUR 113 thousand. This fundamentally positive development was offset in the first half of the year by a disproportionate 26% increase in material costs to EUR 111.5 million (previous year: EUR 88.3 million) relative to sales, primarily due to the use of external project staff and partners. Other operating expenses grew by only 4% to EUR 79.1 million (previous year: EUR 75.7 million), thereby increasing margins. Compared to the previous year, depreciation and amortisation rose by 9% to EUR 35.0 million, largely in line with the increase in personnel and business development. Income from investments decreased to EUR -1.4 million (previous year: EUR -0.9 million), while the financial result improved slightly to EUR -5.3 million (previous year: EUR -5.5 million). The calculated tax rate is -32% after +8% in the previous year. Consolidated net income improved significantly by 40% to EUR -6.0 million (previous year: EUR -9.9 million); earnings per share amounted to EUR -0.88 (previous year: EUR -1.51). Further key figures and information Financial liabilities rose by a total of EUR 51.7 million to EUR 187.9 million in the first half of 2025 compared with December 31, 2024 (June 30, 2024: EUR 167.6 million), due to ongoing repayments and the raising of new loans. This is due to a significant increase in net working capital in the first half of 2025 and the resulting higher negative cash flow from operating activities of EUR -44.2 million (previous year: EUR -18.2 million). This increase is mainly due to a rise in trade receivables and contract assets compared with the same period of the previous year. By contrast, total working capital increased by 10% to EUR 226.0 million compared with the same period of the previous year, which was less than proportional to sales growth. The higher financing requirements are also primarily attributable to the acquisition of the remaining minority interests in adesso business consulting AG (formerly: adesso orange AG) and KIWI Consulting EDV-Beratung GmbH. As of the reporting date, adesso sees cash and cash equivalents of EUR 44.9 million, compared to EUR 52.1 million in the previous year. Net debt amounted to EUR -143.0 million as of the reporting date (December 31, 2024: EUR -46.6 million; June 30, 2024: EUR -115.3 million). Outlook The overall economic conditions have deteriorated slightly in the first half of the year compared to the forecasts announced for 2025. Regardless of the stagnating overall economic development, the industry-specific conditions for the IT sector remain good and the segments relevant to adesso are also on course for growth in the medium term. The sales growth achieved and the noticeable progress in earnings development and profitability are fundamentally positive. Business development in the first half of 2025 is in line with the Executive Board's expectations and continues to offer potential in terms of capacity utilisation for the second half of the year. Due to seven additional working days compared to the first half of 2025 and further license agreements, a significantly higher earnings contribution is expected in the second half of the year. The Management Board therefore confirms its original forecast range for 2025 for sales and operating earnings. According to this, revenues are expected to increase to between EUR 1.35 and 1.45 billion, with EBITDA reaching between EUR 105 and 125 million. The full half-year report and a table comparing key performance indicators over a period of several years are available at www.adesso-group.de/en/, in the Investor Relations section.     adesso Group
With more than 10,700 employees and annual sales of around EUR 1.3 billion in 2024, adesso Group is one of the largest German IT service providers with outstanding growth opportunities. At its own locations in Germany, other locations in Europe and the first locations in Asia, as well as at numerous local customers adesso offers consulting and software development services for optimising core business processes. adesso also offers ready-to-use software products for standard applications. The development of an own, industry-specific product portfolio opens up additional growth and earnings opportunities and is another key element of the adesso strategy. adesso was recognised as a Top Employer in 2025 and as the best employer in its size category in Germany across all industries in 2023 and 2020. After having already achieved first place among IT employers in 2016, 2018 and 2020, adesso was ranked first again in 2023.    


Contact:
Martin Möllmann
Head of Investor Relations
Tel.: +49 231 7000-7000
E-Mail: ir@adesso.de