Admicom Oyj ("Admicom" or the "Company") lowers its guidance for Annual Recurring Revenue (ARR) and revenue for the current year. The recovery of the construction market has been delayed, and in the second quarter of the year, even negative revenue growth figures were reported in Finland. As the market situation continues to be challenging, Admicom will not reach the upper end of the range in terms of growth according to the original guidance.
The challenging market in the construction industry is reflected in Admicom's business in many ways, even though the Company's business is clearly less cyclical than that of its customers. Bankruptcies of construction companies and challenges in solvency increase both customer churn and the use of Admicom's products. In addition, customers' revenue-based invoicing will remain at a lower level as customer growth slows down or declines. The change in the billing model of Admicom's ERP system Ultima has progressed as planned, but as customer growth is slow, revenue-based invoicing will not increase significantly in the last quarter of the year
In addition to market-driven factors, the extensive organizational and operational model reforms initiated by Admicom in 2025 are currently in a transition phase. The changes are expected to strengthen long-term growth and efficiency, although their expected positive effects have not yet been fully reflected in the third quarter sales results and the pace of product development.
Despite the weakening of the growth forecasts, Admicom still believes that it will achieve its original profitability guidance, but narrows down the range of the adjusted EBITDA guidance.
New financial guidance 2025
Annual Recurring Revenue (ARR) is expected to grow in 2025 by 6-10%. ARR in 2024 was 35.7 million euros
Total revenue is expected to grow by 5-8% from 2024 level. Total revenue in 2024 was 35.6 million euros.
Adjusted EBITDA is expected to be 31-33% of revenue.
Previous financial guidance 2025
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.
Admicom Oyj
Additional information:
Satu Helamo
CFO
satu.helamo@admicom.com
+358 45 633 7710
Approved advisor:
Oaklins Finland Ltd
+358 09 612 9670
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/