Unofficial translation of Admicom Oyj's half year report on July 8, 2025 at 8:00 AM EET. In case the document differs from the original, the Finnish version prevails.
An investor call on Admicom's Q2 results will be held on July 8, 2025 at 10 AM EET. You can register for the event via this link: https://admicom.events.inderes.com/q2-2025/register
Figures in parenthesis refer to the comparable period in the previous year, unless otherwise stated.
April - June (Q2) summary:
- Annual recurring revenue (ARR)1) increased by 6.0% and was EUR 35.7 million (33.7).
- Recurring revenue2) increased by 4.3% and was EUR 9.3 million (9.0).
- Revenue increased by 2.2% and was EUR 9.7 million (9.5).
- Adjusted EBITDA3) was EUR 3.1 million (3.6), or 32.0% of revenue (38.4%). There were no adjustments to EBITDA in the second quarter.
- Adjusted EBIT3) was EUR 1.9 million (2.7), or 20.0% of revenue (28.4%).
- Earnings per share were EUR 0.26 (0.38).
- In June, Mrs. Henna Kotilainen was appointed Chief Strategy Officer (CSO) and member of the Group Leadership Team as of September 1, 2025.
- Financial guidance issued in connection to the financial statements release is unchanged, but the themes affecting revenue and profitability have been specified.
January - June 2025 (Q1) summary:
- Annual recurring revenue (ARR)1) increased by 6.0% and was EUR 35.7 million (33.7).
- Recurring revenue2) increased by 6.6% and was EUR 18.1 million (17.0).
- Revenue increased by 4.8% and was EUR 19.0 million (18.1).
- Adjusted EBITDA3) was EUR 5.4 million (6.3), or 28.7% of revenue (34.8%). Adjustments to EBITDA were EUR 81 thousand (81).
- Adjusted EBIT3) was EUR 3.2 million (4.4), or 16.7% of revenue (24.3%).
- Earnings per share were EUR 0.39 (0.60).
- Bauhub generated EUR 767 thousand to Group's revenue and EUR 1.7 million to Group's ARR.
- Mr. Simo Leisti started as Group CEO on January 1, 2025.
- Admicom announced accelerating its AI solution development with EUR 2.4 million research project. Business Finland supports the project with approximately EUR 1 million funding.
- In March, Admicom announced renewals to leadership model and simplifications to organizational structure. The objective of the change is to enhance operational decision-making and expedite the accelerated growth strategy phase to better serve Admicom's customers. The changes also impacted the composition of the Leadership Team from March 2025 onwards.
1) Annual Recurring Revenue = Monthly recurring revenue (MRR) at the end of the period multiplied by 12 and added with revenues from annual adjustment fees and financial statement fees during last twelve months.
2) Recurring Revenue = Monthly recurring revenue added with revenues from annual adjustment fees and financial statement fees.
3) Admicom reports Adjusted EBITDA and EBIT as alternative performance measures to improve comparability between periods. Adjustments are material items outside the normal course of business. They can include costs related to mergers and acquisitions, gains and losses from material divestments, restructuring costs, impairment losses and other unusual, one-off items
Key figures
ADMICOM GROUP (EUR 1,000 unless otherwise stated) | 4-6 /2025 | 4-6 /2024 | Change % | 1-6 /2025 | 1-6 /2024 | Change % | 2024 |
ARR, MEUR | 35.7 | 33.7 | 6.0% | 35.7 | 33.7 | 6.0% | 35.7 |
Revenue | 9 688 | 9 479 | 2.2% | 18 958 | 18 084 | 4.8% | 35 572 |
Recurring revenue | 9 342 | 8 955 | 4.3% | 18 135 | 17 008 | 6.6% | 33 561 |
Adjusted EBITDA | 3 096 | 3 640 | -14.9% | 5 444 | 6 297 | -13.5% | 12 395 |
% of revenue | 32.0% | 38.4% | 28.7% | 34.8% | 34.8% | ||
EBITDA | 3 096 | 3 640 | -14.9% | 5 363 | 6 217 | -13.7% | 12 069 |
% of revenue | 32.0% | 38.4% | 28.3% | 34.4% | 33.9% | ||
Adjusted EBIT | 1 935 | 2 688 | -28.0% | 3 163 | 4 402 | -28.1% | 8 561 |
% of revenue | 20.0% | 28.4% | 16.7% | 24.3% | 24.1% | ||
EBIT | 1 935 | 2 688 | -28.0% | 3 082 | 4 321 | -28.7% | 8 235 |
% of revenue | 20.0% | 28.4% | 16.3% | 23.9% | 23.2% | ||
Profit for the period, | 1 292 | 1 918 | -32.6% | 1 969 | 2 989 | -34.1% | 5 874 |
% of revenue | 13.3% | 20.2% | 10.4% | 16.5% | 16.5% | ||
Earnings per share, EPS, EUR | 0.26 | 0.38 | -32.9% | 0.39 | 0.60 | -34.4% | 1.18 |
Total balance sheet | 38 778 | 39 877 | 38 778 | 39 877 | 43 497 | ||
Employees at the end of the period | 313 | 288 | 8.7% | 313 | 288 | 8.7% | 306 |
Return on equity, % | 16.8% | 27.5% | 12.3% | 21.6% | 19.1% | ||
Return on investment, % | 23.4% | 33.7% | 17.9% | 27.1% | 23.5% | ||
Equity ratio, % | 82.6% | 72.6% | 82.6% | 72.6% | 75.3% | ||
Net gearing, % | -15.6% | -23.5% | -15.6% | -23.5% | -15.6% | ||
Number of shares at the end of the period, 1 000 pcs 1) | 5 017 | 4 986 | 0.6% | 5 017 | 4 986 | 0.6% | 5 005 |
Number of shares on average during the period, 1 000 pcs 1) | 5 009 | 4 986 | 0.5% | 5 007 | 4 986 | 0.4% | 4 987 |
1) In June, Admicom acquired the minority shares in its subsidiary Aitio Finland Oy through a share exchange. In the directed share issue carried out in connection with the share exchange 11,724 new shares were registered on June 6, 2025
CEO Simo Leisti:
"During the second quarter, market recovery was slower than expected at the end of last year, and the revenues in the construction industry were only slightly increasing. As one of our customers describes: "The offer backlog is record-high, but the order backlog is record-low." The unsold apartments in the construction companies' balance sheets is decreasing, and according to the estimates of the Confederation of Finnish Construction Industries, demographic development and the long-term need for housing production will eventually drive construction growth. Macroeconomic indicators regarding construction industry are more positive. Factors such as wage settlements, taxation related decisions, and interest rate development also support the recovery of the industry.
Admicom's growth in the second quarter was hindered by a decrease in the annual adjustment fees based on our customers' revenue. Annual Recurring Revenue (ARR) increased by 6% from last year, but the impact of inorganic growth from the acquisition of Bauhub was 5%. The impact of annual adjustment fees on ARR growth was -2.3 percentage points.
For this year, we expect our growth to be focused towards the end of the year, when the impact of adjustment fees decreases and we are able to implement changes in our pricing. In addition to the usual price increases, we will be implementing a significant change in the invoicing of the Ultima ERP system and accounting services starting from the last quarter. Adjustment fees will be gradually converted into our customers' revenue-based monthly invoicing. With the change, we aim for, among other things, a more even and predictable development of revenue and better customer experience, as our invoicing develops in the same cycle as our customers' business. The new invoicing model is also administratively lighter.
Customer churn has continued to follow the challenging market development and was 1.6% in the second quarter calculated from ARR at the end of 2024. Insolvency related churn decreased compared to the previous year, but consolidation in the construction sector, which drives harmonisation of systems, together with tightening competition has also impacted churn. Admicom's aim is to find opportunities to expand our own customer base more internationally through the consolidation of the customer base. Admicom's aim is to find growth opportunities as the customer base develops into international groups. We aim to respond to the competition with an even stronger product portfolio and its commercial packaging, as well as by investing in the customer experience.
Despite churn, the number of customers developed positively in the second quarter, and the increase in the net number of new logos was over twice compared to Q1. However, the average monthly fees for new customers is currently lower than that of churning customers, which slows down our growth.
In this challenging operating environment, we have progressed the implementation of our new operating model with determination. Q2 was the launch phase of the new operating model, and Q3 will bring several concrete operational reforms.
Many of our reforms aim at simplified operating model. Ultima ERP system and accounting billing model change, we are also simplifying our corporate structure in Finland by merging our domestic subsidiaries in order to clarify our internal processes. The most important goal of the changes is to improve our customer experience and make purchasing and utilizing of Admicom's products throughout our portfolio even smoother.
Bauhub has also gained numerous new users in Finland since its launch. Of the new Bauhub customers, Respect Talotec and Respect Project are also users of numerous other Admicom products (including Vision, Tempo and Ultima). When it comes to new customer acquisition, growing number of customers trust Admicom's extensive portfolio by combining the features offered by the products. An example of these is Sähköpartio Oy, which has started using Quantima for quantity calculation and Ultima for ERP and financial management. This is also reflected in the steady increase in our product penetration rate.
Our customers are strongly involved in validating the transition of construction industry from project-driven to process-driven operations. Our goal is to build a comprehensive, AI-capable platform that supports the key workflows in construction and solves productivity challenges. The development of artificial intelligence has also progressed with our customer pilots, and many use cases that support construction site operations have been tested by our customers. Construction industry is moving to an hourly work model, which emphasizes the importance of real-time and accurate information. Continuous updates from the construction sites must therefore be handled as easily and automatically as possible for different stakeholders. Solving these challenges is a key objective in developing artificial intelligence as part of our platform.
Our organization will be further strengthened by the appointment of Henna Kotilainen as Chief Strategy Officer (CSO), effective September 1, 2025. Henna will play a pivotal role as we enter the strategic phase of accelerated growth. She has extensive experience in business development, as well as in the formulation and execution of strategic initiatives. In addition to overseeing the company's strategy, she will be responsible for advancing internationalization efforts and inorganic growth.
Multiple data points and client feedback indicate that the bottom in the market conditions has been reached. For Q3, we continue to expect moderate yet steady customer growth. The growth towards year-end is also supported by the change in Ultima's billing model and other pricing updates. In the autumn, we will focus on executing our strategy. The changes will influence both our internal processes and the overall customer experience.
After the first six months I still strongly believe that Admicom's direction towards becoming the number one partner in the European construction software ecosystem is the right one. This journey requires perseverance and determination. During autumn, we will also specify the path towards our EUR 100 million ARR target.
I would like to thank all our customers and employees for their commitment to our shared journey and for their cooperation in implementing our changes."
Outlook
Financial guidance for 2025
Financial guidance issued in connection to financial statements release on January 23, 2025 remains unchanged. The themes affecting revenue and profitability have been specified.
Annual Recurring Revenue (ARR) is expected to grow in 2025 by 8-14%. ARR in 2024 was 35.7 million euros.
Total revenue is expected to grow by 6-11% from 2024 level. Total revenue in 2024 was 35.6 million euros.
Adjusted EBITDA is expected to be 31-36% of revenue.
Themes affecting revenue and profitability
At the beginning of 2025, Admicom estimated that the market outlook for construction will develop positively during 2025, but considered the growth rate of the industry to be uncertain. The improvement of the market in the first half of the year has been slow, and although there have been signs of market improvement at an accelerating pace, Admicom does not believe that the improvement in the market will have a significant impact on growth during 2025. The number of bankruptcies has been high in the first half of the year, and Admicom still believes that bankruptcies will continue to impact churn during the second half of the year.
Admicom is constantly working actively to increase the opportunities for new and upsell, and to improve customer retention. The latest change in the organization and operating model aims to make it possible to promote these goals even better through our own operations, even in a weaker market.
At present, the pricing of the Ultima ERP system and accounting services is based on a monthly fee determined by the customer's projected revenue. If the customer's actual annual revenue deviates from the forecast, the customer will be invoiced an annual adjustment fee five months after the end of the customer's financial year. Due to the decreased customer revenue, annual adjustment fees in 2025 are estimated to be approximately EUR 0.8-1.0 million (previous estimate was EUR 0.7 million and2024 actual was EUR 1.4 million). The decrease in adjustment fees weakens the company's growth and profitability in comparison to 2024.
During the first half of 2025, Admicom has prepared for a change the billing model of Ultima and accounting services. In the future, the intention is to include the adjustment fees on a rolling basis into customers' monthly fees based on historical revenue. Annual adjustment fees, which are currently invoiced once a year, will be phased out. Admicom's plan is to bring existing customers within the scope of the new billing model gradually starting from the last quarter of 2025. The change is expected to have a positive impact on Admicom's ARR towards the end of the year.
In connection with the acquisition of Bauhub Oü, Admicom announced the reallocation of its R&D resources to internal development. The estimated financial impact on the revenue of external software development services in 2025 is approximately EUR -0.5 million. The decision also temporarily weakens the company's profitability.
Bauhub's relative profitability is weaker than Admicom Group's, which will affect the Group's profitability in 2025. The profitability of the Finnish operations in euros is expected to remain at the 2024 level.
Due to the above-mentioned factors affecting profitability, Admicom does not aim for relatively improved profitability during 2025.
Adjustments for adjusted EBITDA are material items outside the normal course of business related to e.g. acquisitions or other one-off transactions.
Additional information
This is a summary of Admicom Oyj's Half Year Financial Report 1 January-30 June 2025. The full report is a PDF file attached to this stock exchange release. Full report is also available on the company website https://investors.admicom.fi/
Financial publications in 2025
In 2025, Admicom will publish its Q3 interim report on October 9, 2025.
Admicom Oyj
BOARD OF DIRECTORS
Additional information:
Simo Leisti
CEO
simo.leisti@admicom.com
+358 40 059 0511
Satu Helamo
CFO
satu.helamo@admicom.com
+358 45 633 7710
Certified Advisor:
Oaklins Finland Ltd
+358 9 6129 670
Admicom Oyj
Founded in 2004, Admicom is a pioneer in digitalisation of the construction industry. We utilise our expertise by developing software solutions covering the entire construction value chain as well as services supporting our customers' operations. Our understanding of the operating methods and digitalisation needs of the construction industry is strong, and our goal is to significantly enhance the productivity and quality of operations in the construction industry through our software.
Our ERP solution offers the construction industry the only comprehensive solution in Finland that serves the management of companies' operations, finances and projects through one seamless solution. Our project management product suite provides industry-leading solutions for managing the entire lifecycle of a building.
Our company has around 300 employees in Finland, in Jyväskylä, Helsinki, Tampere, Oulu, Seinäjoki and Turku, as well as in our office in Tartu, Estonia. More information: www.admicom.com.
Admicom's press releases and financial reports: https://investors.admicom.fi/releases-and-reports/
