Sitowise Group Plc Half-year Report, 1 January - 30 June 2025, 13 August 2025 at 8:30 am EEST
This release is a summary of Sitowise Group Plc's Half-Year Report January-June 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
April-June in brief
- Net sales decreased by 2.1% to EUR 49.8 (50.9) million.
- Organic net sales growth was negative at -1.2% (-12.8%).
- Adjusted EBITA totaled EUR 2.5 (2.6) million, or 5.1% (5.0%) of net sales.
- Operating profit was EUR 1.0 (1.1) million, or 2.1% (2.1%) of net sales.
- Cash flow from operating activities before financial items and taxes increased to 7.2 (5.9) million euros.
- Utilization rate improved to 74.2% (73.6%).
January-June in brief
- Net sales decreased by 4.3% to EUR 97.9 (102.4) million.
- Organic net sales growth was negative at -3.2% (-10.3%).
- Adjusted EBITA was EUR 5.0 (5.9) million, or 5.1% (5.8%) of net sales.
- Operating profit decreased to EUR 0.8 (3.0) million, or 0.8% (3.0%) of net sales.
- Cash flow from operating activities before financial items and taxes totaled 7.7 (10.9) million euros.
- Utilization rate was flat at 72.9%.
- The order book decreased by 8.8% to 148 (162) million euros.
- Leverage (net debt / adjusted EBITDA) was 5.9x (4.3x).
- 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 half-year report are unaudited. Comparative figures for the corresponding period of the previous year are in brackets. The figures disclosed in the 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 | 4-6/2025 | 4-6/2024 | Change, % | 1-6/2025 | 1-6/2024 | Change, % | 1-12/2024 |
| FINANCIAL | |||||||
| Net sales | 49.8 | 50.9 | -2.1% | 97.9 | 102.4 | -4.3% | 192.9 |
| Adjusted organic growth, % | -1.2% | -12.8% | -3.2% | -10.3% | |||
| EBITA, adjusted | 2.5 | 2.6 | -1.1% | 5.0 | 5.9 | -16.2% | 9.6 |
| % of net sales EBITA | 5.1% | 5.0% | 5.1% | 5.8% | 5.0% | ||
| EBITA 1 | 2.1 | 2.2 | -4.7% | 2.8 | 5.2 | 45.8% | 7.4 |
| Operating profit | 1.0 | 1.1 | -6.0% | 0.8 | 3.0 | -75.0% | 2.5 |
| % of net sales EBIT | 2.1% | 2.1% | 0.8% | 3.0% | 1.3% | ||
| Result for the period | -0.4 | -0.2 | -153.3% | -1.8 | 0.4 | -582.0% | -2.7 |
| Cash flow from operating activities before financial items and taxes | 7.2 | 5.9 | 22.7% | 7.7 | 10.9 | -29.3% | 21.5 |
| Net debt | 53.3 | 56.1 | -4.9% | 52.6 | |||
| Net debt / EBITDA, adjusted | 5.9x | 4.3x | 5.0x | ||||
| Equity ratio, % | 43.1% | 43.6% | 43.2% | ||||
| Earnings per share (EPS), EUR | -0.01 | 0.00 | -262.4% | -0.05 | 0.01 | -487.8% | -0.08 |
| OPERATIONAL | |||||||
| Number of full-time equivalent employees | 1,758 | 1,906 | -7.8% | 1,749 | 1,895 | -7.7% | 1 854 |
| Utilization rate | 74.2% | 73.6% | 72.9% | 72.9% | 72.6% | ||
| Number of working days | 60 | 60 | 122 | 123 | 251 | ||
| Order book at the end of period | 148 | 162 | -8.8% | 148 | 162 | -8.8% | 151 |
CEO Heikki Haasmaa: April-June adjusted EBITA margin improved year-on-year, strong growth in both Infra and Digi
The positive underlying performance in Sitowise's business in Finland continued during the second quarter. The Infra and Digital Solutions business areas grew organically by 8 percent year-on-year and maintained good profitability. In the Digital Solutions business, the development was particularly supported by the continued fast growth of the product business and a slight improvement in the market environment. In the Buildings business, the market environment remained challenging, but the adjustment measures we implemented during the review period were reflected in clearly improved performance in structural and building services engineering. The adjusted EBITA of the Buildings business was positive also in the second quarter, which I am pleased with.
In Sweden, it was too early to see visible improvements in the second quarter, but we're working hard to show some results this year. Thanks to active sales efforts and the adjustment measures taken after the comparison period, the profitability of structural engineering in Sweden improved significantly, but weak demand in building services engineering posed challenges. We are strengthening our service offering in infrastructure, project management, and sustainability in Sweden, but these segments are expected to contribute more clearly to growth only in 2026. Overall, net sales in Sweden declined by 17 percent year-on-year, and the Swedish business remained loss-making.
The Group's revenue decreased by 2.1 percent to EUR 49.8 million in April-June. The adjusted EBITA margin improved slightly from the comparison period and was 5.1 percent. Profitability was affected negatively by the calendar effect (one less working day) and positively by an improved utilization rate year-on-year.
Considering the challenges in the market environment, the second quarter was good overall, and I want to thank all Sitowise employees for that. After a period of strong focus on costs, and after seeing some early signs of demand recovery, we'll now put more emphasis on order intake to strengthen the order book and make sure we capture the growth when it comes.
Improving profitability remains our top priority, and we seek growth especially in sustainability services, energy, industry, safety, and the product business. To ensure efficiency, we will also continue temporary layoffs in the Buildings business as needed.
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 throughout 2025. Good 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, there have been signs of moderate recovery in the construction market, and we believe that the market bottom is behind us. However, we expect the construction market recovery to be slow and materialize gradually towards the end of 2025. The recovery of new residential construction seems likely to start only 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, there are signs of improvement in all areas in Sweden.
At the end of June, 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 low levels.
In addition to the market development, cost inflation (e.g., relating to salary increases), potential currency fluctuations (EUR/SEK) and Sitowise's 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 | 39% | Stable | Above target |
| Buildings | 28% | Weak (improving) | Clearly below target |
| Digital Solutions | 19% | Stable (improving) | Below target |
| Sweden | 14% | Weak (improving) | Negative |
| Period: | Q2 2025 | Next 12 months | Q2 2025 |
| Definitions: | % 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.
Espoo, 13 August 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:
- Interim Report for January-September 2025: 6 November 2025
Webcast for analysts. media and investors
Sitowise's Q2 2025 earnings webcast will be held today, 13 August 2025 at 12 pm EET. The webcast can be accessed either live or as a replay available at Sitowise Q2 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.
