Welcome to today's event where we have the pleasure to present, Wirtek. As you can see here on the front page, annual report, released, and of course the outlook for 2026 is of course of a natural interest in a normal 2025 outlook. Also a little bit look back on how 2025 developed, to help us through today's presentation and answer questions. In the end of the presentation, we have CEO and Founder Michael Aaen and CFO, Mads Greiffenberg. As always, there's a box down below, where you can ask questions, do it in Danish, and I will try and translate to the best of my ability, but we will conduct this presentation in English. For now, I will hand the call over to you, Mads.
Thank you, Michael. My name is Mads Greiffenberg, and I'm the CFO of Wirtek. I joined during 2025, so I've been part of this exciting year in Wirtek. Please let me walk you through our full year 2025 results, how we tracked against guidance, and what we're guiding for in 2026. Next slide, Michael. 2025 was a challenging year for Wirtek. Revenue came in at DKK 64.3 million, a decrease of 10% over 2024. The result reflects the completion of a large client engagement going into 2025 and a soft market environment where clients delayed investment decisions. EBITA for the full year was DKK 1.7 million, with EBITA margin of 2.6%. Both revenue and EBITA were within our 2025 guidance, but more importantly, the trend throughout the year tells an encouraging EBITA story.
Quarter- by- quarter, every single period showed EBITA improvement over the one before, from a negative Q1 to positive in Q2, improving in Q3, and a very strong Q4 to finish out 2025. That is not an accident. It's the result of deliberate cost restructuring, better utilization, and a sharper commercial focus with new clients coming in during the second half of the year. We kept a solid equity ratio at 44%. Earnings per share came in at -0.21. While these numbers are not one we are proud of in isolation, they do tell a story of a company that chose to invest through a different difficult year, and we delivered on what we promised. Next slide, please. Q1 was painful with an EBITA of -1.1. A major Danish customer relation ended, and the market wasn't moving.
We acted fast though. We restructured costs, we tightened our utilization, and we refocused commercially. Q2 showed a plus of DKK 0.3 million, indicating first sign of improvement, followed by Q3 with plus DKK 0.7 million, and finally a strong Q4 with DKK 1.8 million in EBITA and a very strong margin of around 11%. Three consecutive quarters of improvement ending our strongest performance of the year, as we promised in Q3. That sequential progress is what gives us the confidence to guide 2026 the way we are. As you can see, our full year 2025 number shows that U.S. is our largest market at 35%, Denmark at 30%, Netherlands 21%, Portugal 10%, and the rest of E.U. at 4%. The diversification matters. We're not dependent on any single market.
As a side note, we do not have any single client dependencies either, with all our clients' accounts for less than 15% of group revenue. Next slide please, Michael. As told before, revenue came in at DKK 64.3 million versus DKK 71.9 million in 2024. Services faced market headwinds, and while we invested significantly in our solutions business, the investment that weighed on short-term profitability but are essential to what we're going to do strategically. EBITA at DKK 1.7 million, down from DKK 5.2 million, a margin at 2.6% versus 7.3% last year, and the pre-tax result at minus DKK 1.5 versus DKK 2.7 in 2024, driven by higher amortization of the acquisition in 2024 and the restructured costs that we absorbed in the first half of the year.
As mentioned before, our equity ratio is at 44%, and I'm happy that our operating cash flow is positive at DKK 1.3 million, so we are still generating cash from our operations. Next slide please. Our guidance for 2025 was DKK 64-DKK 69 million, and EBITA DKK 1-DKK 5 million. We delivered DKK 64.3 million and DKK 1.7 million, both within range. In a year this difficult, delivering on what we promised matters to us, and we did that. Q4 2025 in isolation delivered EBITA of approximately DKK 1.8 million and revenue of approximately DKK 16.7 million. That's an EBITA margin of around 11%, and that's the number I want you to focus on from our 2025. Our full year 2024 margin was 7.3%, and our exit rate from 2025 was 11%.
That's a demonstrated result. The cost structure works, the utilization is there, and that's what we build upon in 2026. Next slide please, Michael. Our guidance revenue for 2026 is DKK 65 million-DKK 70 million. That's growth between 1% and 9%. Our EBITA guidance is DKK 3 million-DKK 6 million, up 76%-253% versus 2025. The wide range reflects an honest, cautious market environment, and we're not trying to overpromise here. Please let me draw a bridge between our Q4 and our 2026 guidance. In Q4, we ran at roughly DKK 16.7 million quarterly revenue. Annualized, that's around DKK 67 million, right in the middle of our 2026 range. Our 2026 EBITA guidance is three to six million, implies a full year margin of between 4.5% and 9%.
Again, that's below our Q4 exit rate, deliberately because we're continuing to invest in AI and solutions, and we're assuming a cautious first half of the year. The 2026 guidance is a measured conservative application on what we already approved, already proved here in Q4. 2025 was a year we fought through, but we made some good investments. We rebuilt the cost structure, and we end on our strongest quarter by far. For me, Q4 is the proof point and 2026 is where we build upon this. Thank you for now, and over to you, Michael Aaen.
Thank you, Mads. I'll start out by summarizing key strategic milestones during 2025. There were actually quite a few of those. It was a year characterized by repositioning the business, strengthening our market footprint, and laying the foundation for scalable growth in solutions alongside a more resilient services business. At the beginning of the year, we formally established a dedicated solutions division. This marked an important structural step in Wirtek's transition from being purely a services business towards a dual growth model, combining services with scalable platform-based solutions. During the first quarter of 2025, the United States became Wirtek's single largest market, accounting for 33% of total revenue in Q1, sorry. This development reflects both the strength of long-standing client relationships and our growing relevance in international technology engagements.
As we reported in our Q1 report published in May last year, the energy vertical has grown to represent nearly half of total group revenue. This confirms that our long-term focus on energy technology and its digitalization of critical infrastructure is translating into tangible commercial traction. The structural demand drivers in this sector remain strong and continue to support our positioning as a specialized technology partner in the renewable energy transition. In June, we strengthened our executive leadership team with the appointment of our new Chief Financial Officer Mads Greiffenberg, who has joined me here today at this presentation. This was an important step in enhancing financial governance, supporting strategic execution, and ensuring disciplined capital allocation during a period of transformation and targeted investments.
In July, we secured a significant home automation order in the U.S. market that reinforces our role in connecting devices, ecosystems, and demonstrates continued demand for our engineering and integration capabilities. At the same time, we deepened our technology positioning through participation in the European MAST Research Initiative. Now, this initiative allows us to contribute to as well as benefit from research into intelligent sustainability optimization of energy systems, further strengthening our long-term innovation capabilities. During August, we received another U.S. order related to the modernization of an operational healthcare platform. Now, our continued growth in the U.S. market led us to further expand the U.S. market share to a total of 35% of group revenue for the full year of 2025.
Now, this particular order actually really illustrates the continued relevance of our software engineering capabilities beyond the energy domain, and it highlights our ability to support mission-critical digital information projects. In September, we entered into a partnership with Mota-Engil ATIV in Portugal focused on smart energy community solutions. This collaboration expands our presence in Southern Europe. In November, we announced our new corporate strategy. The strategy is anchored in five execution tracks aimed at reinforcing a profitable services foundation with accelerating the commercial scaling of solutions based on the Wirtek IoT Suite. Now, the objective is to build a more predictable, resilient, and scalable business model capable of supporting renewed growth from 2026 and onwards. Also, in November last year, we entered into a partnership with VIVAVIS. It was related to protocol testing and certification within the energy infrastructure.
Now, this strengthens our credibility in regulated and technically demanding environment and supports our ambition to make security and compliance a differentiating commercial capability of Wirtek. All the milestones in 2025 reflects a year of strategic execution rather than short-term optimization. We focused on strengthening market positioning, investing in future growth engines, and building the organizational capabilities required to scale solutions while reinventing the services business. These actions, they form the foundation for improved financial performance and a clearer growth trajectory going forward. At our Q3 presentation last year, I did a deep dive into our new strategy, and today I will address in more detail how we are embracing artificial intelligence as part of our strategy implementation. Next slide, please. This slide outlines how we are approaching AI strategically at Wirtek.
For us, AI is not a trend or a technology experiment. It actually represents a structural shift in how software is built, delivered, and monetized. During last year, we made a deliberate decision to address this shift proactively and to position Wirtek to benefit from the productivity gains and new value creation opportunities that AI enables. One of the first concrete steps we took was to establish a senior cross-functional AI team. This team operates across both services and solutions and is responsible for translating AI from concept into practical execution. Their work focuses on evaluating tooling, supporting development teams in adopting AI-assisted workflows, and identifying where AI can create measurable improvements in delivery quality as well as in speed.
Already during last year, we've seen tangible effects in faster prototyping cycles, more streamlined internal processes, and early examples of AI-assisted delivery in client engagements. Strategically, this is about strengthening productivity and protecting competitiveness in a market where AI is redefining cost structures and expectations around delivery speed as well. A second strategic focus area is embedding AI capabilities directly into solutions, our solutions portfolio. The Wirtek IoT Suite is a natural starting point for us. Here we will be developing AI driven features that enhance analytics, predictive maintenance, and automation capabilities for customers operating connected infrastructure and energy assets. To support this development, we modernized the technical foundation of our IoT platform during the second half of last year. This included migrating to a modern cloud infrastructure and more scalable system architecture. The purpose is quite clear.
If AI is to become a commercial differentiator and support recurring revenue growth, it must be built on a reliable and secure technical platform capable of scaling over time. The third pillar of our AI strategy is governance and responsible adoption. From the outset, we've treated AI as an area requiring clear internal policies and board-level oversight. We are developing a structured AI usage policy covering how AI tools are applied in client engagements, product development, and internal operations. This includes strict focus on data handling, human accountability for AI-assisted output, and compliance with emerging regulatory frameworks such as the EU AI Act. Our ambition is not only to comply with the regulation, but actually to try to turn governance into a commercial strength for us. Overall, our approach to AI is pragmatic and long-term oriented.
We are investing in internal capability, product integration, and governance frameworks to ensure that AI becomes a driver of margin improvement and scalable ability, as well as differentiation. This is a multi-year journey. The objective is not simply to perform existing tasks faster, but to reshape how we deliver value to clients and how we build a more resilient and scalable business model. By acting early and deliberately, we believe Wirtek can emerge from the industry transition as a stronger and more competitive company. Next slide, please. Now, this final slide summarizes how we see the year ahead and what investors should expect from Wirtek operationally and financially. Our most important priority for 2026 is to return to profitable growth. We are guiding for an EBITDA in the range of DKK 3 million-DKK 6 million.
This represents a significant improvement compared to 2025, and it reflects the structural cost adjustments and operational discipline implemented during the past year. Importantly, the leaner cost base we established in 2025 is already embedded as we enter into the new year. The margin level achieved in the final quarter of 2025 demonstrated the earnings potential of the business once utilization stabilizes and revenue begins to recover. A second key focus for 2026 is the early commercialization scaling of our solutions activities. We'll continue to commercialize the Wirtek IoT Suite with particular emphasis on energy and industrial use cases where we see the strongest market traction and strategic fit. As these offerings mature, we expect the first tangible build-up of recurring revenue, subscription revenue.
Over time, this will gradually reduce reliance on pure billable engineering hours, and it will support a more predictable and scalable revenue profile. While we are confident in our direction, our expectations for top-line growth remains measured. We are guiding for revenue in the range of DKK 65 million-DKK 70 million, reflecting a gradual stabilization in demand within the services business rather than an immediate market rebound. At the same time, we will continue to invest in two structural priorities. First, in further adoption of AI to improve productivity and competitiveness. Second, in the commercial development of the solutions portfolio to strengthen our long-term margin potential and growth profile. In summary, 2025 was a demanding year operationally and financially. However, we believe the actions taken during the year have strengthened the company's strategic position and financial resilience.
We ended the year with improving operational momentum, and our focus in 2026 is to build on that foundation with disciplined execution, selective investment, and a clear ambition to move at the back onto a sustainable growth trajectory. This concludes my presentation, so back to you, Michael.
Perfect. Let's run through some questions. Michael, I think we lost your camera. Your voice was totally fine, but you can try and switch it on and off, and then I will start asking.
Sorry about that.
No, sorry. The voice is the most important, but I guess it's not an AI world where we can suddenly disappear, so.
Oh, I'm back.
Yes, perfect. Yeah, let's start with the first question, actually. Are you already seeing some pressure from this, from the AI on your consulting, your business, your service business? Or is it something you expect to come and are preparing for that? Some elaborations on the AI and maybe, you know, your service business and whether it's pressure now or pressure coming.
Oh, it is here, right? You know, everybody is talking about AI. Everybody expects to get a big productivity gains from AI. Of course, that is gonna happen. No doubt about it. We just want to have it done in the right way and making sure that governance follows actual usage, so that it's done in a good way. It's there.
It's there.
We are dealing with it.
You're dealing with it. It's already there. It's not something you're preparing for, and your strategy is you're already dealing with it. Because when I talk to some other IT services, consultants and so on, they speak a little bit about this, maybe moving more to value-based pricing, because now you are hourly wage, it took 10 hours before, now you can do in two. Shouldn't you be allowed to charge for four hours because you actually do your internal training of your consultants and so on. Any thoughts about is this changing landscape you are trying to get into with this strategy change?
AI can help a lot on productivity, but you also have to be really careful how you implement it. There are many areas where things can go haywire if you don't do it the right way. That's where we wanna be really careful. I'll also say that the AI readiness of clients is very different. Some are far in front, and others, they have not even started really considering it yet. It can also be industry related, you know, how ready you are to take on new technologies. I would say it like this, yeah, you can easily. If you need to do a prototype, especially in prototyping, it's you can do prototyping quite fast.
Going from prototype to actual product ready to market, there's quite a distance there, and it has to be managed very, very carefully if you also want to have a product that is very maintainable in the future as well.
What you need is people, is more architects now than maybe software developer. Is that correctly understood? It's that shift, you know, if you don't understand the architecture, you can go. The code can look good, but actually it can go horribly wrong when you send it into to the real world. Is that kind of the shift that is happening?
Exactly. You know, you can try to automate a lot in there, you know. You could in principle have a development set up, you know, where no people are involved. I would not recommend something for that that would go live with clients or in critical infrastructure or anything like that, you know, because you often see AI actually have a brain tumor or something like this, and it does things.
Yeah
Totally unpredictable, right? I would say you have to do it carefully, but you will see that, you know, when you do it, you will need people helping. With the help of AI, gain a pretty good productivity. Having this man, the person included in the process there, we see as quite important as well.
There's a little bit about the data security and the E.U. versus U.S. data. I know maybe you are not so hot about it because you also actually have a U.S. market, which is kind of a little bit unusual for the IT consultancies. Can you already see a little bit about that from your customers, that that's something they are demanding? You know, E.U. versus U.S. data and the security part of this, I guess, will increase with more and more increased AI usage.
Well, of course, there is. You know, the majority of the work we're doing in the energy sector is in the E.U. We are very much focused on the renewable energy area, and that is not so popular in the U.S. right now, as you can probably hear from so, and of course that is a very regulated business. You know, critical infrastructure is often involved there, you know. There you actually have to be really careful, you know, how you are dealing with AI in this kind of environment. If you're getting close to the actual infrastructure there will be quite a big reluctance just to take on AI into that kind of environment.
Cause it's really, really, what you say, they're not changing technologies very fast in this kind of areas there.
Perfect. You mentioned to yourself energy.
It can be very.
Sorry.
Sorry.
No, just, finish.
No. I'm not sure we, you know, at least not from my chair, I don't see that big a, you know, of differences between clients in U.S. and E.U. at the moment. I see it more in industries.
Yes.
You know? You know, because it depends on what kind of data you're also dealing with, right?
Perfect.
Because, you know, if you're looking at the EU AI Act right there, you know, your information, you know, related for instance to people, you know, becomes quite important. If you have AI dealing directly with this, and you don't want, you know, AI to make a lot of important decisions based on personal data, right? You know, it's you have to be really careful here.
Let's close the AI chapter how much faster are your developers today because of AI compared with a couple of years ago? Can you already say something about the size of the benefits you can have on your cost side or something like that? So a little bit thoughts about the efficiency gains you can already see or might wanna see by your developers and a little bit about whether we are already seeing some of that in your much better, you can say, much better earnings that you have shown sequentially through the year.
No, it's not really reflected in the earnings from last year in the business yet.
Oh.
It is us, you know, working towards where we are gonna, you know, repackage the way we deliver our services to the clients. Of course, the AI is gonna have a big impact at the bottom line for sure in how we can provide that kind of service to the client, where we kind of share the profitability of the productivity gains with the clients.
Yeah.
Because if you're just doing it an hourly based business, then all the benefits of AI go directly to the client, right? We are repackaging the way we are delivering services so that we can share that benefit with the clients.
Sure.
That is still, you know, it is. We have a few clients that are quite far ahead on the road towards AI, but most clients, it's very early stage still.
Yeah. That's also what I hear around. Yeah. Perfect. Let's jump a little bit into the 2025 results. Revenue came in the low end of guidance. Which specific customers or segment disappointed the most? I know you landed within your guidance range, but in the little low end, was there anything that disappointed you from the start of the year to the end of the year? Where were you most disappointed or surprised by a negative development?
Well, you know, we of course had a hard start of the year because one of our long-term client relations came to an end. That was kind of how we entered into the new year. We were, you know, behind the previous year already from the outset.
Yeah.
We had to build up the revenue base again during the year. As you could see, especially during second half of the year, we start building up a lot of incoming new orders during that year. Again, it was a big loss of business we had to replace during the year.
Sure.
You know, it was a little slower than we had hoped for, to be honest, right? That's why we ended up in the lower part of the revenue guidance.
No specific industry or something like that disappointed you. It was really the catch up on this disappointing client from the year start, which you have elaborated on both your Q1 and Q2. That is the main culprit, you might say for this. Is that correctly understood?
Well, if we look at the revenue generated last year compared to the revenue generated in 2024.
Okay
The loss of revenue from that client we lost in January is significantly higher than the gap between the revenue last year and the revenue in 2024.
Perfect. Makes sense.
If it was not for that client loss, then we would have been at totally different place revenue wise last year.
Perfect. To follow up a little bit about the, as you said, you are actually exposed pretty much to energy. I think energy is the hottest subject out there in the world right now. I know you are not directly in energy production, but I guess if we get higher structural energy prices, the savings of this energy and your IoT and this system, I guess is built on saving energy. Is it too early to see something already, conversation increasing your own expectations on maybe if the world forms and we get structurally high energy prices, how that might actually affect your business?
Well, for sure, you know, if what happens down here in the Hormuz Strait continues in the longer run, that will have a pretty damn negative effect on energy prices, no doubt about it. You know, when you have something that lasts for a long time with very, very high increased prices, that often turns into a structural change. Where companies, people are starting to invest in solutions that are not dependent on, for instance, oil and gas.
Yeah.
This is not bad for our focus area, for sure.
Yeah.
Some of our solutions we're working on in our solutions division go in and actually help reduce energy usage.
Yeah.
That's a good thing when part of the energy grid actually generates energy based on gas turbines, right?
Yeah. I know it's very early, but at least so share your thoughts about the world developing right now and how that would affect your business. What share of the total revenue do we expect the solution division to account for in 2026? I don't know whether you guide specifically on the area, so you wanna indicate that or is that going too far, or besides what you have already published in your guidance?
We have not described this in our guidance. We are guiding for the group revenue for the company as a whole. Again, you know, this takes time. It's a new area of business for us.
Yeah.
As I said last year, we are investing in building up solutions both this year and next year. It's gonna be an investment for us building that up. Last year, solutions was accounting for 4% of total revenue, right? It's in a smaller size. It takes time to build that up. The good thing about this kind of solutions is that part of that revenue generated, there's gonna be annual recurring revenue, so that will be regenerating year-over-year, right? At some time, hopefully we can start talking about annual recurring revenue as well.
Check, check.
It'll take some time.
You've had an active M&A strategy. Small bolt-on, you have actually always shown that you have a very short payback time when you do these bolt-ons. Do you still have an active M&A strategy or are you more focused on actually building up these solutions and you thereby, you know, organically investing instead of M&A? A little bit of thoughts about this area on the M&A side.
Now, I didqn't talk much about the strategic tracks today because I did that, you know.
Yeah, yeah.
in November last year when we presented the Q3 report. The last strategic track of those five, you know, actually also is M&A, with strategic mergers and acquisitions as well. That is part of our growth moving forward, is also going out and identifying strategic acquisitions.
Check. I think that was the last question, Michael and Mads. Thank you for taking us through your results and answering questions, and thank you for the audience listening in. May everybody have a nice day.
Thank you.
Yeah. Same to you. Bye-bye.