Sitowise Group Plc, Interim Report, 1 January - 31 March 2025, 13 May 2025 at 8:30 am EEST
This release is a summary of Sitowise Group Plc's Interim Report January-March 2025. The complete report is attached to this release as a PDF file, and also available on the company's website at www.sitowise.com/investors/reports-and-presentations
January-March in brief
- Net sales decreased by 6.5% to EUR 48.1 (51.5) million. In constant currency net sales were down by 6.6%.
- Organic net sales growth was negative at -6.3% (-7.7%).
- Adjusted EBITA was EUR 2.4 (3.4) million, or 5.1% (6.6%) of net sales.
- Operating profit decreased to EUR -0.3 (2.0) million, or -0.6% (3.8%) of net sales.
- Cash flow from operating activities before financial items and taxes totaled 0.5 (5.0) million euros.
- The order book increased during the quarter. Year-on-year the order book decreased by 3.4% to 157 (163) million euros.
- Leverage (net debt / adjusted EBITDA) was 6.0x (3.8x).
- In the client survey conducted at the beginning of the year, the willingness to recommend remained at a good level and the NPS (Net Promoter Score) was 35 (31).
The figures in the interim report are unaudited. Comparative figures for the corresponding period of the previous year are in brackets. The figures disclosed in the interim report are rounded so the sum of individual figures can deviate from the reported sum. This report has been published in Finnish and English. If there are any differences between the English translation and the original Finnish version, the Finnish report shall prevail.
Key figures
| EUR million | 1-3/2025 | 1-3/2024 | Change, % | 1-12/2024 |
| FINANCIAL | ||||
| Net sales | 48.1 | 51.5 | -6.5% | 192.9 |
| Organic growth, % | -6.3% | |||
| EBITA, adjusted | 2.4 | 3.4 | -27.7% | 9.6 |
| % of net sales | 5.1% | 6.6% | 5.0% | |
| EBITA | 0.8 | 3.1 | -75.0% | 7.4 |
| Operating profit | -0.3 | 2.0 | -113.7% | 2.5 |
| % of net sales | -0.6% | 3.8% | 1.3% | |
| Result for the period | -1.4 | 0.5 | -360.4% | -2.7 |
| Cash flow from operating activities before financial items and taxes | 0.5 | 5.0 | -90.7% | 21.5 |
| Net debt | 56.6 | 56.7 | -0.2% | 52.6 |
| Net debt / EBITDA, adjusted | 6.0x | 3.8x | 5.0x | |
| Equity ratio, % | 43.4% | 43.6% | 43.2% | |
| Earnings per share (EPS), EUR | -0.04 | 0.02 | -341.4% | -0.08 |
| OPERATIONAL | ||||
| Number of full-time employees | 1,740 | 1,883 | -7.6% | 1,854 |
| Utilization rate | 71.6% | 72.3% | 72.6% | |
| Number of working days | 62 | 63 | 251 | |
| Order book at the end of period | 157 | 163 | -3.4% | 151 |
CEO Heikki Haasmaa: Order book turned to growth, small signs of market recovery in the Finnish construction market
Our underlying performance in Finnish operations improved during the review period. Infra continued strong growth and maintained profitability above the target level. Also Digital Solutions' revenue grew nicely and its profitability remained at a good level despite the challenging IT market. In the Buildings business area adjusted EBITA turned positive following the improvement measures taken. I am pleased with these achievements and the fact that the group's order book grew during the review period for the first time in two years.
The weak performance of the Sweden business area was still our biggest challenge. Net sales in Sweden declined by 28 percent, with the weak construction market affecting the demand for structural engineering services. Following extensive adjustment measures implemented during the review period and fall 2024, our personnel count was approximately 25 percent lower year-over-year, aligning with the decline in net sales. Our order book in Sweden has remained stable since last summer, and we are continuously working on enhancing profitability in the region.
The group's net sales decreased by 6.5 percent to 48.1 million euros, and the adjusted EBITA margin was 5.1 percent, partly impacted by the negative calendar effect year-on-year. Adjusted EBITA margin was broadly at comparison period's level once the negative calendar effect is taken into account. The result for the period was burdened by significant one-time costs, mainly related to personnel reductions in the Buildings and Sweden. In March, we renewed our financing agreement, which is now valid until June 2027.
Improving profitability remains our top priority. We focus on enhancing profitability further in Finland and turning Sweden to growth. While I am pleased that sales activity and order intake in Sweden have increased, stronger growth and more agile pricing are essential for the profitability turnaround. We continue active sales in all business areas and seek growth especially in sustainability services, energy, industry, security, and product business. To ensure efficiency we will also continue temporary layoffs in the Buildings business as needed.
Our customer satisfaction improved in the customer survey conducted at the beginning of the year in all business areas, and our digital expertise received significant recognition with the success of the Metsään.fi solution and the Planect product in Finland's most significant digital competition Grand One. These are good examples of the clear steps forward we have taken in developing our business.
OUTLOOK AND GUIDANCE
Outlook for the year 2025
The long-term growth in the demand for design, consulting, and digital services to create sustainable societies is supported by megatrends such as urbanization, renovation backlog, sustainability, digitalization, and security.
We expect the technical consulting market environment to remain mixed in 2025. Growing demand for services related to green transition, security, and digitalization will support business performance especially in the Infra and Digital Solutions business areas. In the Buildings business area, the first half of the year is still expected to be weak, although there have been signs of moderate recovery in the construction market, and we believe that the market bottom is now behind us. However, we expect the construction market recovery to be slow and materialize gradually in the second half of 2025. The recovery of new residential construction seems likely to start in 2026. In the Sweden business area, Sitowise has taken decisive improvement measures and expects these to gradually enhance performance. Achieving a profitability turnaround in Sweden primarily requires increasing net sales. There is uncertainty related to the timing of the Swedish construction market recovery, but it is generally anticipated to take place only in the latter half of 2025 or even only in 2026. However, the outlook for buildings services and infra market is somewhat better.
At the end of March, order books were at a good level in the Infra and Digital Solutions businesses. In the Buildings and Sweden business areas, order books and workloads were at insufficient levels.
In addition to the market development, cost inflation (e.g., relating to salary increases), potential currency fluctuations (EUR/SEK) and Sitowise's high financing expenses are expected to impact the company's financial performance in 2025. In 2025, the number of working days in Finland is one less compared to 2024 (-1 in Q1, -1 in Q2, +/- 0 in Q3 and +1 in Q4). In Sweden, the number of working days remains the same in 2025 as it was in 2024. In total, there will be 251 working days in Finland and 247.5 in Sweden.
Market outlook and current profitability
| Share of net sales | Market outlook | Current profitability | |
| Infra | 37% | Stable | Above target |
| Buildings | 30% | Weak | Clearly below target |
| Digital Solutions | 19% | Stable | Below target |
| Sweden | 15% | Weak | Negative |
| Period: | Q1 2025 | Next 12 months | Q1 2025 |
| Definitions: | Percentage of consolidated net sales | Strong / Stable / Weak | Adj. EBITA-%: Above: >12%; In line: 10-12%; Below: 5-10%; Clearly below: 0-5%; Negative <0% |
No guidance issued for 2025
Due to the unpredictable timing of construction market recoveries both in Finland and Sweden there is significant uncertainty related to Sitowise's net sales development in 2025. Therefore, Sitowise has decided not to give net sales and profitability guidance for 2025 at this stage.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
Decisions of the Annual General Meeting
The Annual General Meeting (AGM) of Sitowise Group Plc was held on 2 April 2025 in Espoo, Finland.
The AGM approved the company's financial statements and consolidated financial statements for the financial year 2024, discharged the members of the Board of Directors and the CEO of the company from liability, and resolved to approve the remuneration report for governing bodies. The AGM decided that no dividend will be distributed from the Company's distributable funds for the year 2024.
The AGM resolved that the remuneration of the Board members will remain unchanged. Eero Heliövaara, Mirel Leino-Haltia, Elina Piispanen, Niklas Sörensen and Tomi Terho were re-elected to the Board of Directors and Rodolfo Zeidler was elected as a new member to the Board of Directors. KPMG Oy Ab was re-elected as the auditor of the company and as the sustainability reporting assurer of the company, with Kim Järvi, APA and authorized sustainability auditor, acting with the principal responsibility. The AGM further authorized the Board of Directors to decide on the repurchase of the Company's own shares and to decide on the issuance of shares as well as the issuance of special rights entitling to shares referred to in chapter 10 section 1 of the Companies. The authorizations are described in detail on the stock exchange release published on 2 April 2025, and they are both effective until the beginning of the next Annual General Meeting, however no longer than until 30 June 2026.
Decisions of the Board organizing meeting
In the constitutive meeting of the Board of Directors of Sitowise Group Plc held after the AGM, the Board of Directors elected Eero Heliövaara as its Chair and Tomi Terho as its Vice Chair. Mirel Leino-Haltia was elected as the Chair and Elina Piispanen and Rodolfo Zeidler as the members of the Audit Committee. Eero Heliövaara was elected as the Chair and Niklas Sörensen, Tomi Terho and Rodolfo Zeidler as the members of the Personnel Committee. The board also decided to terminate its Acquisitions Committee.
Espoo, 13 May 2025
Sitowise Group Plc
Board of Directors
Additional information
Heikki Haasmaa, CEO, heikki.haasmaa@sitowise.com, tel. +358 50 304 7765
Hanna Masala, CFO, hanna.masala@sitowise.com, tel. +358 40 558 1323
Mari Reponen, Head of IR, mari.reponen@sitowise.com, tel. +358 40 702 5869
Financial calendar 2025
The planned publication dates for Sitowise Group Plc's financial reports in 2025 are as follows:
- Half-year report for January-June 2025: 13 August 2025
- Interim Report for January-September 2025: 6 November 2025
Webcast for analysts. media and investors
Sitowise's Q1 2025 earnings webcast will be held today, 13 May 2025 at 12 pm EEST. The webcast can be accessed either live or as a replay available at https://rajucast.tv/sitowise/q1-2025-result-webcast/
Distribution:
Nasdaq Helsinki Ltd
Key media
www.sitowise.com
Sitowise in brief
Sitowise is a Nordic expert in the built environment and forestry with a strong focus on digitality. We provide design and consulting know-how to enable more sustainable environment and smarter urban development as well as smooth transportation. Sitowise offers services related to real estate and buildings, infrastructure, and digital solutions both in Finland and in Sweden. Global megatrends drive huge changes that require a re-evaluation of the smartness in the built environment - therefore we have set our vision to be Redefining Smartness in Cities. The Group's net sales were EUR 193 million in 2024 and the company employs approximately 2,000 experts. Sitowise Group Plc is listed on Nasdaq Helsinki under the trading symbol SITOWS.
