TietoEVRY Oyj Q2 2025 Earnings | 07/22/2025

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TietoEVRY Oyj reported its second-quarter 2025 results on July 22, 2025, showing a decline in revenue and profitability amid ongoing challenging market conditions. The company’s net sales for the quarter were EUR 463.1 million, down 3% from EUR 478.9 million in Q2 2024, with organic revenue declining 4%. Despite a positive EUR 2 million impact from exchange rates, softness persisted across most business segments, including Create, Banking, Care, and Industry. The company recorded a net loss of EUR 34.3 million compared to net income of EUR 28.3 million in the prior year’s quarter. Basic and diluted loss per share from continuing operations were EUR 0.52, substantially lower than the prior year’s earnings per share of EUR 0.13. Adjusted operating profit (EBITA) stood at EUR 43.7 million, a 14% decrease from EUR 51.1 million a year earlier, resulting in an adjusted EBITA margin of 9.4%, which fell short of market expectations. The reported operating loss was EUR 66.1 million, largely driven by an EUR 80 million non-cash impairment related to capitalized development costs for a legacy Norwegian banking platform. Segment performance varied: Create declined 7% organically with an EBIT margin of 9.6%, Banking slightly declined but maintained a margin of 10.7%, Care exceeded EBIT expectations but had a slightly lower margin than forecasted at 24.4%, and Industry underperformed with an EBIT that was 24% below consensus and a margin of 10.9%. TietoEVRY reiterated its full-year 2025 guidance, expecting organic growth between -2% and +1% and adjusted EBITA margin of 12% to 13%. Management highlighted ongoing cost optimization efforts aimed at achieving EUR 115 million in run-rate savings by the end of 2026 and expects profitability to improve in the second half of the year as the impact of divested Tech Services costs diminishes. The order backlog grew 14% year-over-year on an organic basis, fostering confidence in future growth despite current market softness. The recently appointed CEO, Endre Rangnes, emphasized a strategic focus on customer-centric initiatives and growth opportunities to navigate the challenging environment. Cash flow from operating activities was EUR 51.3 million in the quarter, down from EUR 68.1 million in Q2 2024, and the company reported net interest-bearing debt of EUR 875.4 million. The Tech Services business was classified as discontinued from Q1 2025, with the divestment expected to close in Q3 2025. #TietoEVRY #TIETOS #Q22025 #Earnings #RevenueDecline #AdjustedEBITA #OperatingLoss #TechImpairment #DigitalTransformation #CostOptimization #OrganicGrowth #MarketChallenges #OrderBacklog #SoftwareServices #IT #Industry #Banking #Care #Create #InvestorUpdate #InsideTicker