Good morning, everyone, and welcome to Admicom's 2025 Q4 and full-year earnings call. My name is Simo Leisti. I'm the Group CEO of Admicom, and I'm here together with Satu Helamo, our Group CFO. Today, we're going to cover the highlights of our Q4 last year and also the full-year highlights, kind of like wrapping up the last year. And also, we'll look into 2026 strategy and focus areas in our business and in our strategy execution. And then also, we will be going through the Q4 and 2025 financial key results and results and numbers. And also, we'll be looking at the financial guidance for this year. And please do submit questions online. We also have our dear analyst in the room, so we will have a Q&A after the presentation. But let's get started.
Our Q4 highlights was, to put short, we had a bit of a mixed Q4. We had a sales performance that was a little bit uneven throughout the Q4. We had some lower sales months, but then in December, we were able to deliver the highest sales month of the year, and also, actually, when we were looking at the historical numbers, it was actually the highest sales month in a couple of years, so a very good finish to the year in terms of the sales performance. It did fell from our own expectations, and I think we were not able to have a consistent sales performance, and also, growth-related activity that we had also during the year where we anticipated some positive ARR growth numbers was the billing model change for our Ultima ERP and our accounting services.
Even though we were able to roll more than 700 customers to the new billing model, we did not get the full impact we were anticipating to our growth numbers from that change. Also, during Q4, we were able to deliver a very strong finish in terms of our profitability. I think the Q4 profitability numbers show that we are now truly at the end of our investment period, and we're now able to start to see stabilizing and improving margin and profitability in our performance. During Q4, we were able to bring to the market our first AI product and offering from our R&D investment that we have been doing during this year.
So we literally brought AI to the construction sites through our Site Operations product package, which is a commercial packaging and new AI technology features, which helps the Site Operations to be more productive and efficient. Also, we were able to finalize our operational simplification during Q4. During the end of November, we were able to finalize our subsidiary mergers. And now, in the future, we will be operating under one Finland subsidiary entity, which, of course, gives us more simplicity in terms of our ability to contract with the customers, our ability to run the business from a company structure perspective. Also, in Q4, in December, we held the Capital Markets Day, where we updated our midterm financial targets and guidance. So we're looking at, towards the end of our strategy period in 2028, we're looking at coming back to more than 15% organic growth year-over-year.
We're looking at getting above EUR 60 million annual recurring revenue, and also, we're looking at improving our current operations profitability to go beyond 40% adjusted EBITDA, so Q4, a little bit of a mixed performance in terms of sales, but very strong performance and end of the year in terms of our profitability. When wrapping up the year 2025, first of all, it's now a full year, me being in the role of CEO, so I don't quote myself as the new CEO of Admicom anymore, so now, I think I'm fully onboarded, and during 2025, we were able to do quite a lot of things in terms of our strategy execution, clarifying our targets, but also to create a foundation for the better and accelerated growth. First of all, we were able to create a strategic shift from a product-centric model to a more customer-centric platform approach.
What this means is that in the beginning of 2025, we were still operating very much around our single product portfolio, and we were looking at kind of like serving the customers with one product at a time, and during the year, we were shifting towards more platform play, which means that the customers have a single Admicom user identity, they have a single sign-on, and we have certain product integrations that help the customers to navigate between the different products, and this journey is now well on the way, but we're not at the moment, we're not yet in our target state where we want to be with the platform operations, and also, like mentioned, we are now much more simplified in our operational model. We have One Admicom operating model, so we are now operating as one company towards the customers and also internally.
This merger of the subsidiaries in Finland, of course, simplifies our operating model and supports the One Admicom operating model. During the year, we also established our accounting services, where we have approximately 90 people. We established that as a single independent business unit. It used to be under our ERP software business, but now it's a standalone business unit. With this strategic focus into that service, we have been able to improve the customer experience, we have been able to improve the employee experience, and we are on track with our efficiency and profitability improvements in that services business as well. Now we call it the Business Services, which means that we are bringing much broader services capabilities than just the accounting and payroll services to our customers.
We are also ramping up more robust customer success operations, which means that we have a more intensive focus in our existing customers, expanding their uses of our Admicom portfolio and how we make sure that the customers are being successful and get the value from our products. And we have had a good momentum during 2025 in our cross-sales, and we have been able to add customers who are using multiple Admicom products. And during this year, we will be even more improving these customer success operations to mitigate voluntary churn and also to accelerate the cross-sales. Also, as mentioned, we have the significant investment into our AI in terms of our R&D project, and the first commercial product came out during 2025, and we are continuing that project during this year as well.
And in terms of Admicom culture, in terms of our more unified target culture, we have been doing a lot of work in this area. Now we have a unified role framework for all Admicom employees, and we're now helping our professionals in construction and software business to create interesting career opportunities inside Admicom with this new role framework. And also, we have established a new leadership framework so that we can be more consistent in how we lead the business moving forward. So a lot of things happening during last year and creating the foundation for the more accelerated growth. And now, of course, we want to start to capitalize on those changes. And why we're doing this business? It is for our customers to build better, and we do it together with our customers.
We launched during 2025 a podcast series called RaksaTalk, where we bring forward different kinds of customer success stories and how we can help our customers to be more productive. We have excellent examples from last year, like Franklin Company, who have been growing significantly despite the turbulent market in construction in Finland. These customer testimonials are the evidence that we're doing the right things and we're helping our customers to build better. Of course, when we bring new capabilities to the market, we need early adopters to test and kind of like see how these new capabilities help them to be more productive and help them to be more efficient in their operations.
And we have a customer called Veksa-Tech in Oulu, who have been the early adopters to our first AI commercial products, and they're very committed and even enthusiastic about using technology in construction to help to improve their productivity and operational efficiency. And the customer quotes from their CFO are really great to explain what kinds of benefits and value they see from using the AI capabilities in their operations. And during these past couple of years, we have seen this very turbulent market in the construction industry in Finland, and we have seen how the industry revenue volumes have been going down during 2023 and 2024, and we have started to see some signs of recovery during 2025, but we have been in very low volumes in construction overall.
And if we're looking at our ARR performance during these years, I think it's a great example and a proof point that we have a very resilient business model despite the market volatility. And during this year, we have started to see some positive numbers from construction volumes, and the latest reported numbers from Statistics Finland from November show that the market, the volumes were growing 11.8%, which is a very encouraging message from the market. However, the growth is not evenly distributed. We have different areas in Finland who are performing better than others. We have different sectors of construction who are performing better than others. So the performance improvement is not evenly distributed, of course, also throughout our customer base.
We see that the major challenge is still in the residential new building sector, which has been driving a lot of the construction volume in Finland during, for example, 2021, 2022, and now it's still showing kind of like very slow signs of significant recovery, and one reason for this is that the price gap between the old apartments and new apartments is still continuing to be quite high. The gap is quite broad, and the cost of construction is still growing quite rapidly when the old apartment prices are still continuing to be in a slight decline, so we need to have some improvement in the price gap to be brought narrower, and also we need to get the demand to pick up in Finland for the new apartment building projects to really kick off in a more significant way.
And of course, the whole market changes are creating impact for us and also opportunities. So if we see positive impacts and positive trends from the market, we can see that many of our growth levers are contributing positively to Admicom's business. And if we see that the market is not picking up rapidly during the year, we see that the certain negative impacts of the low volume still persist. So still for this year, our guidance for growth is very much dependent on how the market is going to recover, and Satu will explain what sort of assumptions we have been making in our 2026 guidance. So let's switch to this year and our strategy and focus areas, how we are delivering the numbers for this year and where we put our focus in terms of our operational and strategy execution.
Like we said in the Capital Markets Day, and we have been repeating this during the last year, our mission is still very firmly in helping our customers to build better, and we do it together with our customers and with the different ecosystem partners in the industry, and our vision is to become a partner of choice in the European construction software ecosystem, which of course relates to our ambitions to grow also internationally. We launched a new strategy phase for the next three years, and it's called Let's grow together, which of course means that when we help our customers to grow, when we help them to take all the benefits from the market recovery and also from improving their own operational efficiency, we firmly believe that it will contribute positively to Admicom's growth as well.
And as mentioned in the highlights that we are looking at returning back to higher growth rates and to get above the EUR 60 million ARR in our overall revenue volumes. And some might think that, okay, Admicom had this vision of becoming more than a 100 million company. We still have that vision. So this is just one milestone on our journey to become a more than a EUR 100 million ARR company. And now we focus our execution into this three-year strategy period. And one of the cornerstones for our strategy is our offering portfolio, where we bring together more customer-centrically the strategic workflow areas, what the customers are in a way using and delivering in the construction projects. And we want to bring the most comprehensive AI-enabled platform to support our customers on this journey.
We have still some areas of gaps in our capabilities to cover all of these areas, but also we have some areas of very strong capabilities. Let's take as an example the project management area, where we have tools and capabilities and existing software for schedulings and task planning. We have resourcing, cost estimation, quantity, takeoff calculations, and documentation. We have a lot of capabilities in the project management. Now we want to make sure that all the capabilities in the different areas are better interconnected and our customers can more flexibly orchestrate the different workflows with the help of AI agents. This is our platform vision, and we're building that on top of our existing products and services capabilities.
Like the Site Operations commercial packaging is one example of how we package things in a more easily consumable way for our customers to use and so that it's more fit for purpose for different user personas in the customer's operations. We also will bring more partners to the offering mix and to complement our capabilities. Hopefully we can announce some new partnerships in a near term so that we can help our customers to be more productive, have more data-driven decision-making with the help of some of these partners moving forward. We also in the CMD mentioned about our growth drivers during the strategy period. For 2026, our biggest expectations for the growth is coming from landing new customers and expanding our existing customers with the cross-sell. These are the main drivers for the 2026 growth numbers.
We will have positive growth contribution from the market growth and when our customers are growing the business, but we have a little bit more conservative expectations for that for this year, and also when it comes to expanding to new geographies and having inorganic growth to boost our performance, we're not expecting major contribution from international markets, but we are expecting our business and operations in Estonia to grow organically, and we are also opportunistically looking at the different other market dimensions, and we will bring more information about our international expansion and M&A strategy progress in the coming earnings calls, and how we execute the strategy is through five different execution streams, and I will not go through in very detail in this. Please listen into the Capital Markets Day webcast, and we will go through more in detail what these streams are about.
But more if we reflect these execution streams and our three-year roadmap for this year, the main priority is to focus in growth in Finland, strengthening the foothold in Estonia, and of course reactivating and starting again to more systematically pursue also the inorganic growth opportunities. And here in more detail, we have the 2026 execution priorities. So growth acceleration in Finland, next steps with our platform approach, and also our steps in international expansion. So like mentioned, we have just done some foundational capabilities to our products so that they can perform and customers can use them more in a platform way. And we will make further steps during this year to enable more seamless workflow integration and also data integration. And especially we're looking at connecting the project management and production area so that the information and workflows between those two will work even more seamlessly.
We will focus on resource allocation more effectively to the Finnish market, and we're doing certain changes in our Finnish sales and customer success operations to make sure that the market potential is better covered by our sales and customer success teams. We are reactivating our M&A pipeline work. Now when we have more clarity around our midterm strategy and targets, we're able to start to reactivate and really start actively working on creating more opportunities from the inorganic growth. And this is of course very much connected to our international growth as well. And we're looking at improving our Business Services, customer service and customer experience, but also delivery efficiency by using technology, automation, and AI in that service. And for those of you who know accounting service, payroll service, it's still very much done by manual work.
So there's a lot of efficiency potential there, how we can make people work better together with technology to create more efficiencies in that. And we're expecting the efficiency to also be reflected in higher relative profitability of the Business Services as well. And we have certain internal process and system development activities that we need to start during this year. So even though we have been mentioning that the investment period for Admicom has been mostly done during the past couple of years, we still have some system capabilities, process capabilities that we need to further develop so that we can be more effective and also start to serve more international customers in the future.
So even though the headcount-related investments have been made very much so that it's more a question of resource allocation, now the question is how we make all of those people work more effectively together and also to support them with the right tools and capabilities to deliver better results, and also in February, we have our main customer event where we bring together the customers, the ecosystem of construction to Helsinki Messukeskus, where we will then have a great day full of interesting topics, so it's an open event for everyone who is interested in construction, digitalization, and what's happening in the construction industry. Please come and join the event, and it will be a great one as well this year like last year where our customers are sharing their stories and experiences in the construction field. Great. All right.
Let's go to our Q4 and 2025 financials and guidance for this year. Satu?
Thank you, Simo, and happy 2026 also from my behalf. So first, let's have a look at some of the key metrics from the last quarter. As mentioned, our ARR growth was 6%. And considering that in October when we issued a profit warning for this year, we lowered our growth guidance, we were still, let's say that we still had a chance of meeting with the original guidance minimum threshold of 8% growth. So from that perspective, we cannot be fully satisfied with landing at 6%. And as Simo mentioned, there were a couple of reasons. So we had volatility in sales, inconsistent sales performance throughout Q4, although December was very high in sales that did not contribute to ARR at the end of the year.
On top of that, as mentioned in our earlier calls this year, we are in progress of changing Ultima and accounting services billing model for our customers, and we nearly met with our targets for 2025. But there were a bunch of customers who were supposed to be transitioned into the new model by end of December, and unfortunately, we did not quite succeed in that. So there were some customers whose MRR impact came in only in January. So that's obviously a short-term timing challenge, but something that we were fairly confident that we could execute in a more successful way. ARR growth in last quarter is fully organic. So our latest acquisition of Bauhub happened in December 2024, which means that we calculated Bauhub's full ARR into our numbers already in the end of 2024. However, for revenue growth and recurring revenue growth, Bauhub's revenue is mostly inorganic.
So because the acquisition happened in mid-December 2024, we only had two weeks of Bauhub's revenue consolidated in 2024. And now in 2025, we have full 12 months. Customer churn landed at 6.3%. We have said in the CMD that our midterm target is to be at 6%. So we're not very far from that. A year ago, customer churn was 5.6%. And a year ago, we also communicated that that was a bit lower than we expected. In Q4, about 1/3 of churn related to customer insolvencies. So the market downturn is still weighing us down on the churn component. With profitability, we landed at our own targets. So Q4 adjusted EBITDA was 33.2% and full-year EBITDA 32.5%. We narrowed the guidance in October to 31%-33%. So we landed towards the high end of the updated guidance. So we're fairly happy with that.
In Q4, not meeting with the growth targets meant that we have done some reversals related to bonus provisions, so that has a one-off impact, positive impact on profitability, but on the other hand, Admicom has a fairly solid track record in managing costs, and we were very good at that again, so profitability-wise, we landed at our own targets, so that was a clear positive from Q4 and 2025 in total. Let's have a slightly closer look at Q4 and 2025 financials, so a couple of things to remind you. The quarterly variance in Admicom's financial reporting is quite large, so Q4 and Q1 are pretty much alike in terms of profitability, but in second quarter and third quarter, we invoice the annual adjustment fees, so that boosts our profitability.
And of course, during the holiday season, so specifically in Q3, a lot of activities slow down because people go on holidays. And also there is a positive impact from the holiday season on the personnel costs. So when looking at the variance between Q4 and Q3, those are the main items related to the profitability change. Secondly, what's good to remember is that when we go from EBITDA to EBIT level, according to Finnish accounting standards, we recognize amortization from goodwill generated in M&A. And in total, in 2025, goodwill amortization was EUR 4.3 million. So that's approximately EUR 1.1 million per quarter. Looking at quarter or year-over-year profitability between Q4 of 2025 and Q4 of 2024, we have quite big improvement there. So adjusted EBITDA improved by over 25%, nearly 26%. And mainly that is driven by our revenue growth.
I think that's a clear proof of our business scalability that with growth, we can also boost our profitability going forward. And finally, I would maybe draw attention to the last line of this slide. So the number of employees only grew by four people during 2025. So that's another proof that the high investment strategy phase is behind us. As mentioned, ARR growth 2025 is fully organic. So Bauhub was added in Q4 2024. And the last quarter ARR growth was 3.2%. And in 2025, we had Ultima price increases taking place in the fourth quarter, but all the other products already previously or in the previous quarters. So that's obviously one item boosting the growth in the fourth quarter, but definitely not the only one.
Looking at our ARR growth from different components of ARR, we can see that upsell and downsell have developed positively compared to 2024, so we have increase in upsell and decrease in downsell. So in net numbers, the trend is positive, and of course, in upsell, we have the monthly adjustment fees now feeding into that component. So in the future, the adjustment fee component in our ARR development bridge will phase out as we transition all of our customers to the monthly billing model. Churn and adjustment fees development have been the key items slowing our growth down over the past couple of years when the market has been tough, and lastly, new sales in 2025 landed at the same number as in 2024, and Simo already mentioned some of the changes that we are now making to our sales team structures in early 2026.
And with those changes, we want to make sure that all of our sales representatives have enough prospects. They have enough pipeline to meet with their targets. So in that area, I think we weren't fully successful in 2024, but actions to correct that are or have already taken place. Finally, before going into our 2026 guidance, a few reminders of the key strengths of Admicom. So this is the same slide that was presented in the CMD. So as you can see from the EBITDA development, although we have been in a downward trend in adjusted EBITDA for a few years now, that has been a strategic decision from us. So we have invested in various areas of our business. And for that reason, we have had a decline in adjusted EBITDA ratio. However, 33% is still very strong.
So we have a very strong profitability to start now building on. And on top of that, we have a very solid cash flow. We are currently debt-free. So our capacity to use leverage for our inorganic growth ambition is also very strong. And of course, lastly, our business is very predictable. So now that we have pretty much sort of run down the external software development services business, almost all of our revenue is recurring in nature. And now turning also focus to 2026. So this morning, as part of our Q4 and annual report releases, we also issued financial guidance for this year. We are guiding the same three items as we have for a couple of years now. So for ARR growth, we are expecting 6%-12% growth this year. And for total revenue, we expect 5%-10% growth.
The difference between these two numbers relates to the fact that we expect the second half of this year to be faster in terms of ARR growth. There are various reasons for that. Let's look at those a bit later. Then in terms of profitability, we are guiding 31%-36%. That's the same guidance that we originally gave for 2025, which we then narrowed down with our profit warning. The reason that we are guiding the same range is that, of course, we are aiming to be above the midpoint. We are aiming to improve adjusted EBITDA. But in our strategy, we have certain investments that we aim to be making related to the system's landscape and in general sort of making sure that Admicom's operations are scalable also in an international environment.
I consider that a positive problem if we can move into making those investments towards the end of the year because for me, that means that we have been quite fast with our strategy execution. In our guidance, we wanted to leave some room for that also. A few words about the key themes affecting our growth and profitability in 2026. There are again things that need to be understood to sort of interpret our guidance. Of course, we are seeing some promising and encouraging signals of the market improvement. The double-digit growth rate in the construction sector in November was a really positive sign. However, the economists are still very conservative about the 2026 growth rate in general.
So there is still high uncertainty, and we don't know yet if we will be looking at higher growth rates permanently or if this was a one-off month. So that's one key theme that we have taken into account when giving our own guidance. With our own actions, especially to make our sales performance more consistent over months and in order to mitigate churn better from different parts of the organization. So we believe that with those actions, we can drive our growth even in a more uncertain market. In our new strategy, we have taken even stronger focus on construction sector customers. And of course, we believe that that will be a decision that will be beneficial for us in the long term. That will help us sort of guide our product development decisions better and make our products better for the chosen ideal customer profile.
But in short term, Admicom has some non-ICP customers from the past, so for example, from the industrial segment. And now that we are more vocally focusing on the construction sector, in short term, it can mean that some of these industrial customers might choose to leave us in short term. And today, we already know of one larger non-ICP customer who is expected to churn during this year. The transition phase from annual adjustment fees to the new monthly billing model will also be sort of a short-term temporary negative impact for us this year, or that's how we expect it to be. So that relates to the fact that we have now transferred almost half of Ultima customers into the new billing model, which of course means that their monthly fees will start developing in line with the market. But the market is expected to grow quite slowly.
So we don't expect a high positive impact from the transitioned customers yet in 2026. And what it also means is that we have less customers who will be receiving an annual adjustment fee invoice in 2026. So from those 700 customers who transferred into the new model already, only a handful will be getting an annual adjustment fee in 2026. And then on the other hand, we have those customers who have not yet been transferred into the new model. And for those, we expect more credit notes than positive adjustment fee invoices. But I want to emphasize that this is a temporary challenge, especially for 2026. And after 2026, we don't really expect much impact from the annual adjustment fees anymore. But every customer should be in the new billing model already.
And then finally, a couple of negatives which will challenge us, especially in the first half of 2026. So of course, having inconsistent sales results towards the end of the year and having customer terminations and insolvency-related terminations also at a higher level towards the end of 2025 means that those will realize in our 2026 first half growth. From the profitability side, having completed the strategic investment phase of course means that we are able to start turning the profitability and also already have proof of that. And our primary objective is to reallocate current resources and not be making a lot of new recruitments this year. We mentioned improving profitability in our Business Services in the CMD. And for those productivity gains, we already have a couple of activities that can be used already from the beginning of 2026. So that's really good.
The temporary impact from the annual adjustment fees also has an effect on the profitability because the annual adjustment fees are one of revenues with 100% margins. So when they decline, also 100% of that decline is reflecting on the EBITDA line. And lastly, if we get to make the targeted investments, I think that's a positive sign of us moving fast with our strategy execution. So although the short-term impact might be negative, I still consider that to be a positive thing. I think that wraps up our presentation for today. And now let's head to the Q&A. And maybe we start with the analysts here in the room.
Yes, if we can have the microphone and let's start from the room here.
Hi, Simo and Satu, Daniel Lepistö from Danske Bank. Thank you for the presentation. I have a couple of questions.
Maybe starting off with this downsell component, which on absolute level seems to be still on the high side. So can you dissect a bit these components? What are the customers saying? Why is this downsell still happening? And how are you seeing it in 2026 with the development? But can you discuss this in more detail?
Yeah, I can first give a few examples of what types of activities contribute to the downsell. So in our products, we have three main, or in our products and services, three main monetization strategies. So one is based on the functionalities of the solution and also including a revenue component so that when customers' revenues are increasing, the certain charge components are increasing. And if it's decreasing, it has also the same effect downward.
So if the customers' revenues decline and they then get a credit note from us, it's considered as downsell. If we have a user-based charging model in our systems and solutions, when the customers are, for example, not having a high number of new projects in their project planning or project management, typically the customers have the ability to lower the number of user seats that they're being charged for. And this contributes also to our downsell component. The third one is a project-based fee, which we have, for example, in the Bauhub product. If the customers are having less active ongoing projects in their business, they will have a lower monthly charge from those as well. So these are all directly things that are affecting our downsell figures.
And what we saw during last year was that in many cases, the customers were adjusting their usage of our products and services to their current business volumes. And of course, turning this into a positive in the positive upturn of the business, we will see the similar effects on a positive side. And then they will be contributing to upsell. And now we previously reported separately the adjustment fee. So now the monthly updating revenue-based charging component in Ultima and accounting services will be contributing in the future to the upsell as well.
All right, thank you. Maybe next on the general market outlook, what your customers are seeing. I mean, you discussed that house building is still under pressure in Finland. It's uncertain, but there are some bright spots like infrastructure and maybe data centers.
Can you discuss these maybe growing segments a bit, what your customers are seeing, how exposed they are, or is this house building too important for your customers?
Yeah, it's a great question. When we look at the overall construction industry volumes, the number might give a little bit of a, let's say, wrong kind of a signal that everybody's doing better. Even though we had the overall construction segment growing in their revenue volumes in November, there are a lot of different kinds of projects that are actually contributing quite a lot of growth into the sector. We have, for example, tens of data center projects ongoing in Finland where many of our customers, especially in the specialty construction side, have been focusing on supporting those construction projects.
There's a lot of HVAC, electricity, land moving, and other specialty construction services needed for those large building projects, which are contributing positively to a certain segment in our customers. But it's quite a few number of companies who are benefiting from these large projects. In Finland, if I take the whole geographical Finnish perspective, mostly the construction has been driven by new residential building projects. Since this volume has been very low and it's very inconsistently divided in Finland, so we see areas that are really booming at the moment and we see areas that are struggling. A number of construction companies have moved away from being very focused on a certain geographical area in Finland, and they have moved into more like a Finland-wide way of working and operational model.
But some of those who have stayed in the more area-focused in their business, they have really seen dramatic drops in their revenues. And so the market recovery is somewhat inconsistent, and a very large number of customers that we have in our services and solutions are very much dependent on the residential side of construction. So I think that once we start to see the recovery across the sectors in construction, then we start to see the consistent improvement in our customer base as well. Now we can see very clear bright spots. We have customers who have been growing 50% last year or 30% last year, but then we see a number of customers who have had very, very low revenue volumes.
And 2026 will be still quite inconsistent in the growth, and we are quite a lot relying on the construction industry forecast for this year, which is indicating 3%-4% growth across the whole sector. So hopefully the positive trend continues, and hopefully the positive trend will be more Finland-wide and also contribute more to the residential side as well.
All right, thank you. Maybe a final question from me at this point. Maybe if you could discuss these international operations you have at this point, Bauhub in Estonia and the small pilots you have ongoing in Sweden. I see that Bauhub actually grew quite well in 2025. So maybe on this is this growth from Estonian customers or from cross-selling to new Finnish customers. But yeah, that's the question.
Yeah, very strong organic growth in Estonia. So their growth still continues.
New customers are being onboarded, and existing customers are using Bauhub to multiple projects. They're taking it into a more broad use. Very positive performance from there. We were not fully satisfied with the growth in Finland, and we are now targeting more focused customer segments for main contractors, for some of the development companies and the owners of the new buildings, so that they're the ones dictating what solutions are being used in the project by all the different stakeholders. We're targeting more to that user group and customer group there. From an international growth perspective, first of all, we're strengthening our team in the international growth side and also in the inorganic growth side. We're starting, like we mentioned in the CMD, that we have a dual track for the international expansion.
We're looking at organic growth opportunities for our existing products in the new markets, and we're being very selective in which markets we want to go because all of the products require localization, so we don't want to start to do localizations for too many countries at once, and at the same time, we're looking at the inorganic growth opportunities to further support and strengthen and accelerate the market entry in those markets, so we're now ramping up both, which we held back a little bit, the M&A activity during last year because we wanted to clarify our own strategy and direction, and now we're in a great position, both financially, but also from a strategy perspective to start again accelerating that, and I am expecting some results from those activities during this year.
All right, thank you.
Hi, it's Atte Riikola from Inderes.
First about Bauhub, the ARR was now like EUR 1.8 million. So what kind of expectations you had during the time of the acquisition? Was it higher or lower?
This is where I can say that I'm a new CEO, so I don't know.
Maybe I can take this question. First of all, to clarify the Bauhub revenue and ARR given in our report, that's the Estonian company ARR. If we sell Bauhub in Finland, we sell it through our own legal entity here. That wouldn't be classified there as inorganic or as Bauhub revenue or ARR. I think Bauhub performed in Estonia quite in line with our expectations, but in Finland we were not successful in finding the right positioning. That's something that we need to clearly improve for this year.
What's also good to understand about Bauhub's business is that their ARR and MRR are driven by the number of projects that the customers have ongoing. And for the end of December, that typically declines. So it was even higher after Q3. So in September, October, November, we had even higher ARR from Bauhub than we have at year end. And that's the sort of normal cyclicality of their business. And also Bauhub didn't do any price increases in 2025, so those are still in the back pocket for us to use.
Then about those customers outside of the construction business, can you give any number that how much revenue is still coming from, for example, those industrial clients?
Well, I would say that we have maybe 50-60 customers from that area. So it's not significant.
Maybe, well, this is now a guesstimate, but maybe EUR 500,000. So we're not talking about the huge amount of ARR or revenue, but for example, the one larger churn that we are expecting, that could be as high as EUR 30,000. So to replace that, we would need almost like one more sales month to cover. So that's sort of the point that we wanted to take.
If I would explain what sort of customers and why would they be churning, a couple of years ago, we had an industrial segment where we started the development and sales of more like manufacturing-related ERP to some industrial customers. And we have discontinued this development, but we still have some customers who are using this industrial or manufacturing ERP.
Those customers in particular are, of course, under scrutiny and under continuous evaluation. That is, is this really the right platform for them in the long run. But if we have non-ICP customers who are using, for example, our documentation solution or some other solutions that are a great fit for purpose without any industrial kind of like requirements, then those customers are more stable. So these industrial manufacturing ERP customers are the ones that are mostly under evaluation at the moment. And like Satu mentioned, their significance in numbers of customers and in ARR is not huge, but still it's something we have to take into consideration when evaluating the ARR growth for this year because it might have some adverse effects from the customers leaving.
Then about the ARR growth guidance, how you are modeling the new sales versus net upsell components on that.
Is one of them more important than the other or how you're weighing it?
Well, I would say that we expect, of course, the market sentiment to have a boost in both. In cross-sales, we have done, I think, okay in terms of our own actions to improve our cross-sales capabilities. But we are definitely not capturing all the potential from the teams yet. And as said during the presentation with new sales, I think we had some challenges with allocating enough prospects across the sales team. So that's something that we also expect to improve for this year. So I would say both. Maybe upsell component has more like market-driven components to that also, but both we can also drive with our own actions.
One thing related to this prospect allocation, we see that as we disclosed in the CMD that we have approximately 30% market share when it comes to construction companies above EUR 1 million revenue, but then we have a very significant customer segment that is like from EUR 500,000 to EUR 1 million revenue construction companies, and we need to make sure that we have the right product mix for that segment, and we have our sales enough allocated to serve this customer segment as well, so during this year, we will be adjusting our portfolio to better meet the needs and requirements of this smaller end of customer segments where we have a huge volume of prospects and also to have like a commercial packaging and solutions that are a better fit for that customer segment, so that's as one example.
All right, and that was actually the answer also to my next question about focus areas in the sales team. Then, about your first AI tool, Site Operations, and you mentioned that one customer case there, but if you look at the big picture, is it still are like many customers using it, or is it more like at this point like nice to have product, or is there already like many customers that are like getting like major efficiency gains with that tool across the situation?
Yeah, so that was just one customer example. During the development phase, we had more than 10 customers already in the development stage onboarding that tool. And now we have been commercially successfully selling that to new customers as well.
And the main benefits come from reducing manual tasks during the production stage of the construction sites, automatically creating construction site diary entries, automatically doing, for example, different kinds of communication to the customers, or if we're doing a renovation in a large building, you can do automated kind of like monthly reports or weekly reports to the residential homeowners, how the progress has been making and so on. So it's a lot of work that we can reduce from the site staff, which is more like manual entries and system-related tasks. One use case that we have been now taking into use is that how you can make easy updates to your schedules when you have some deviations from the original plans. So if you have a one-day delay in certain things, you can automatically update the schedules for the entire project automatically.
When in the past, it was more like you had to do manual adjustments in all the schedule components. And first feedbacks from the customers are very encouraging so that it actually delivers real efficiency gains, and they will start to build more and more their workflows in the site operations by using this automation, which then becomes like a real tool that supports the whole business and not just something that is fun to use or less important. So very encouraging messages from the customers, and we want those new capabilities and AI to be in the workflows, in the activities, what people do at the construction sites, and not something that is just a fun gadget on the side. So very encouraging messages.
Then about those investments that you said that you might be doing at the end of the year if things go well.
What are those things? Because if you look at your financial position, you could do those right away, but why are you holding back?
Yeah, so that's because the investments relate to systems mainly. So when taking into use a new system, you have to time it right so that you can get also the return on the investment. So I think that first we need to improve and streamline some of our own internal ways of working before bringing new systems into use. So this is a favorite topic of mine because typically companies and people tend to think that you just buy a system and then it starts to operate how it's supposed to, but that's not the case. So you first need to organize your processes and ways of working so that you can get the benefits from the system.
So that's what I meant, that if we are quick with adjusting our own ways of working and we can actually bring in new systems that can bring us benefits, then we will happily do that faster than later.
All right, got it. And last question, this might be a tough one. We look at it globally, the whole software sector. There is now, among investors, there is fears that AI will disrupt many, many SaaS companies. So what's your current view on how AI will affect Admicom's business in the coming years?
I think ourselves, we are accelerating this disruption.
So we are bringing the AI capabilities into our portfolio so that the change that will happen is that we will not hard code certain business processes to our systems, but we want to give that flexibility to the users, how they are orchestrating the different data and different workflows that best suit their needs. And this is why we have the AI agent-based workflow orchestration in our portfolio as well. And we're planning on integrating this also to other AI systems. So the AI systems can orchestrate our systems through the AI interfaces. But the core system value that we have in our tools and capabilities is the data structure and the data models that we have in place that are related to construction business. Because you can't store data in a chatbot, and you have to have some kind of a robust backend that you can use.
I've been working a lot in different industries and accelerating digital transformation in multiple industries. In manufacturing and industrial side, we speak about having a clean core systems, which means that the ERP systems are becoming more like a clean core that have certain functionalities and capabilities, data models and data repositories. Then the flexibility comes from microservice architectures and AI agents like using the data. Our main investment is in making sure that this data layer and the clean core for the projects is robust. On top of that, you can be very flexible in how you orchestrate your workflows and how you make that data to serve your business the best. That's how we see it.
So more integrations and more flexibility in the business process orchestration layer, and then more focus on making sure that the core capabilities and processes are in place in the backend. So we're serving both, and also when speaking about the ecosystem, we want to become an ecosystem member where some of our capabilities can be orchestrated by external AI agents as well.
Thank you. That's all from me.
Great.
Thank you. It's Patrick Campbell from Nordea. Just going quickly back to the investments for next year or potential investments. Could you maybe quantify the potential size and impact in terms of profitability?
Well, not very well. So we are still in the phase of evaluating which type of systems would suit us the best and in what order we should start making those investments.
But for this year, I would not expect a very high amount of maybe a couple, few hundred thousand this year.
Thank you.
All right, and I'm observing from the online. I hope this is working because there's no questions at the moment submitted. I'm looking at our technical team that it's all good, so we don't have any questions online, so I think we have been very clear with our messages, so I thank you all for participating and very happy new year for everyone and also looking forward to coming back to you after our Q1 earnings, so thank you all for listening and have a great 2026.
Thank you.