Sweden · Delayed Price · Currency is SEK Proact IT Group AB Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw strong EBITDA growth of over 45% year-on-year, driven by cost reductions and surging memory prices, with all business units returning to profitability. Revenue rose 2.3%, and new cloud contracts increased 24% year-on-year.
Fiscal Year 2025
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Q4 revenue declined 4.8% year-over-year, but adjusted EBITDA rose 5.9% as cost savings began to take effect. Full-year revenue and EBITDA were down, with growth in Nordics and UK offset by declines in West and Central. SEK 80 million in annual cost savings and a higher dividend are expected in 2026.
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Q3 revenue declined 4.3% year-over-year to SEK 1.08 billion, mainly due to weaker system sales, while recurring revenue and cloud contract order intake grew. Cost efficiency measures and the Consular acquisition aim to strengthen performance, with future cloud revenue growth expected as new contracts are onboarded.
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Q2 revenue fell 7.9% year-over-year to SEK 1.17 billion, with strong growth in Nordic & Baltics and UK offset by declines in West and Central. Profitability actions and new AI offerings were launched, while BlakYaks contributed positively. Adjusted EBITDA margin was 6.5%.
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Q1 saw modest revenue growth and strong Nordic/Baltic performance, offset by declines in West and Central due to customer churn and tough market conditions. The BlakYaks acquisition bolstered UK capabilities, while cost efficiency measures and new contracts aim to support future growth.
Fiscal Year 2024
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Q4 revenue declined 6.7% year-over-year, but full year saw record revenue, EBITDA, and cloud contract intake. Strong cash flow and net cash position support a proposed dividend increase, with positive outlook for 2025 and continued focus on cloud and services growth.
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Operating in 11 countries, the company is shifting from hardware reselling to higher-margin, recurring cloud and service contracts, achieving strong organic growth and profitability. Nordics and Benelux regions are robust, while Germany and UK lag. M&A and cloud expansion remain strategic priorities.
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Q3 saw strong organic growth of 8.8% and EBITDA up 8.9% year-over-year, driven by robust system sales and improved margins. Cloud and consulting revenues dipped due to timing and market factors, but management expects a rebound and remains positive on future growth.
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Q2 2024 saw 5.8% revenue growth and a 19% EBITDA increase, with strong cash flow and a new share buyback program. Gross margin improved to over 25%, and all business units except the UK showed stable or strong performance. Demand for cybersecurity and cloud services continues to rise.