Finland · Delayed Price · Currency is EUR Tecnotree Oyj Earnings Call Transcripts
Fiscal Year 2025
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Revenue grew 8.2% in constant currency, with EBIT margin and free cash flow exceeding guidance. Order backlog reached a record EUR 107.5 million, while forex volatility and receivable risks persisted. Dividend proposal and conservative 2026 outlook reflect ongoing market uncertainties.
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Sixth consecutive quarter of positive free cash flow and record order backlog highlight a structural shift to cash-generating growth, with strong ARR and expansion in mature markets. Despite forex headwinds and higher provisions, guidance for revenue and margin growth is maintained.
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Record H1 2025 performance with 28% EBIT growth, five quarters of positive free cash flow, and a record €105 million order backlog. Raised revenue guidance to high single digits, driven by strong cloud and MVNO growth, despite FX headwinds and challenging collections.
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Q1 saw stable revenue growth of 4.6% in constant currency, positive free cash flow for the fourth consecutive quarter, and improved DSO days. Strongest demand came from EMEA and APAC, with a major new account win in the Netherlands and reduced FX risk exposure.
Fiscal Year 2024
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Revenue grew 4% in constant currency despite FX headwinds, with strong cost controls driving EBIT margin to 33%. A one-time EUR 7.3 million provision impacted net income, but order backlog and ARR growth support a positive outlook. 2025 guidance targets improved margins and free cash flow.
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Q3 2024 saw improved free cash flow and cost efficiency despite currency headwinds and muted revenue growth, with a strategic shift to ARR and mature markets. Guidance for 2024 remains on track, supported by strong order intake and ongoing cost reductions.
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Net sales remained resilient at EUR 34.9 million for H1 2024, with a 6% increase in order backlog and positive free cash flow in Q2. Strategic cost reductions, product innovation, and expansion into stable markets support guidance for revenue and EBIT growth in 2024.