ETTEPLAN OYJ Interim Report May 5, 2025, at 1.00 p.m. (EEST)
ETTEPLAN Q1 2025: Increased uncertainty affected demand
Key points January-March 2025
- The Group's revenue decreased by 2.3 percent and was EUR 94.9 million (1-3/2024: EUR 97.1 million). At comparable exchange rates, revenue decreased by 2.5 percent.
- Operating profit (EBITA) decreased by 29.4 percent and was EUR 5.8 (8.2) million, or 6.1 (8.4) percent of revenue.
- Operating profit (EBIT) decreased by 37.9 percent and was EUR 4.2 (6.7) million, or 4.4 (6.9) percent of revenue.
- The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) in January-March was EUR -1.3 (-0.2) million.
- Operating cash flow declined and was EUR 5.0 (8.1) million.
- Basic earnings per share were EUR 0.09 (0.16).
- Etteplan specifies its financial guidance for revenue and operating profit (EBIT) within the previously communicated range and estimates that revenue in 2025 will be EUR 365-395 (2024: 361.0) million, and operating profit (EBIT) in 2025 will be EUR 23-28 (2024: 18.4) million.
Etteplan also monitors non-IFRS performance measures because they provide additional information on Etteplan's development. More information on performance measures is provided at the end of the release.
Key figures
| EUR 1,000 | 1-3/2025 | 1-3/2024 | 1-12/2024 |
| Revenue | 94,868 | 97,118 | 361,020 |
| Operating profit (EBITA) | 5,779 | 8,185 | 24,373 |
| EBITA, % | 6.1 | 8.4 | 6.8 |
| Operating profit (EBIT) | 4,155 | 6,695 | 18,410 |
| EBIT, % | 4.4 | 6.9 | 5.1 |
| Basic earnings per share, EUR | 0.09 | 0.16 | 0.41 |
| Equity ratio, % | 38.7 | 39.2 | 40.5 |
| Operating cash flow | 5,013 | 8,056 | 30,961 |
| ROCE, % | 7.8 | 13.3 | 9.4 |
| Personnel at end of the period | 3,918 | 3,847 | 3,803 |
President and CEO Juha Näkki:
The first quarter of the year was unpredictable and political tensions were very high. The market situation at the beginning of the year was weak, and our customers' decision-making remained slow. Compared to the corresponding period in the previous year, the demand situation was substantially worse and our revenue decreased. The weak market situation and significant non-recurring expenses also led to a decline in our profit performance. In particular, the result of the Technical Communication and Data Solutions service area was weak. We had to continue to implement adaptation measures and made changes in our organization to improve our ability to execute our new strategy. Other non-recurring expenses were incurred from an acquisition and a significant credit loss in Germany.
During the review period, we nevertheless saw slight signs of a recovery in Europe in orders received by our customers, which also led to new investments getting started to some extent. This was reflected in slightly better demand in some of our customer industries. In Finland, for example, the number of our temporary layoffs decreased towards the end of the review period. In China, the market situation remained good. However, the development of the trade war cast a new shadow on the emerging recovery of the market situation at the end of the review period, and we have already seen some postponements and cancellations of investment decisions.
Uncertainty in the markets is now at an unprecedented level. In this situation, the only thing we can do is to focus strongly on the implementation of our strategy and direct our sales efforts to the customer industries in which we see opportunities also in the future, such as the defense industry and the energy industry. In spite of the uncertainty, we do not expect the demand situation to deteriorate further from the current low level. Even after a prolonged downturn, the wheels of industry must keep turning, and prepare for the potential improvement of the market situation at some stage. The timing of the improvement is impossible to predict at this time, but we are ready to accelerate growth as soon as the opportunity presents itself.
Market outlook 2025
The most important factor affecting Etteplan's business is the global development of the machinery and metal industry. Uncertainty has again increased in the markets due to geopolitical tensions and the global political situation. During the first quarter of the year, the market situation already showed slight signs of a recovery, until the development of the trade war increased uncertainty in the markets and weakened our demand outlook. In the changed global situation, investments related to the defense industry continue to increase, and investments in the energy industry are at a moderate level. In our other customer industries, the uncertainty in the operating environment makes it considerably more difficult for our customers to make investment decisions and keeps the demand situation at a low level. Predicting the market situation is very difficult at this time but, in spite of everything, we do not expect the demand situation to deteriorate from its current level in 2025.
Financial guidance 2025
Etteplan specifies its financial guidance for revenue and operating profit (EBIT) within the previously communicated range and issues the following estimate:
Revenue in 2025 is as estimated to be EUR 365-395 (2024: 361.0) million, and
operating profit (EBIT) in 2025 is estimated to be EUR 23-28 (2024: 18.4) million.
Previous financial guidance 2025 (February 12, 2025)
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical range and issues the following estimate:
Revenue in 2025 is estimated to be EUR 365-400 (2024: 361.0) million, and
operating profit (EBIT) in 2025 is estimated to be EUR 23-30 (2024: 18.4) million.
Disclosure procedure
This stock exchange release is a summary of Etteplan's January-March 2025 Interim Report. The complete Interim Report is attached to this stock exchange release in pdf format and is also available on Etteplan's website at www.etteplan.com.
Conference call and live webcast today, May 5, 2025
Etteplan's President and CEO Juha Näkki will present the Company's results for January-March 2025 in a conference call and a live webcast, held in English language, on May 5, 2025 starting at 2.30 p.m. (EEST).
Questions can be asked in Finnish and in English after President and CEO's presentation only through conference call connection. Participants must register through this link https://events.inderes.com/etteplan/q1-2025/dial-in to ask questions through the conference call lines. After registering the participants will receive a teleconference number and a code to join the call. The participants are asked to press *5 to join the queue for questions.
Juha Näkki's presentation can be followed as a live webcast on https://etteplan.events.inderes.com/q1-2025. The webcast starts at 2.30 p.m. (EEST). A recording of the webcast will be available later at www.etteplan.com.
Espoo, May 5, 2025
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at www.etteplan.com.
DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com
Etteplan in brief
Etteplan is a growing technology service company with the purpose of bringing people and technology together to change things for the better. Together with our customers, we are building a world where every system, process, and product can be made smarter, more efficient, and more sustainable. Our customers include world's leading companies in the manufacturing industry. In 2024, we had a revenue of EUR 361.0 million and around 4,000 professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com