adesso SE

Adesso reported 2025 sales of EUR 1.466 billion, up 40% from EUR 1.286 billion in the prior year. EBITDA was EUR 123.6 million, up 30% from EUR 94.8 million, and EBITDA margin improved to 8.4% from 2024. EBIT margin was 3.4% versus 2.1% in 2024, and EPS was EUR 3.83; gross profit rose 12%, while personnel costs increased 11%. For 2026, management guided to revenue of EUR 1.6 billion to EUR 1.7 billion and EBITDA of EUR 130 million to EUR 150 million, with only a slight EBIT margin improvement expected.

Martin Mollmann framed 2025 as another year of extraordinary, fully met growth targets and pointed to a resilient, diversified business model. He highlighted strength in sectors like insurance, banking, health, public, and utilities, and emphasized that the company is well positioned for AI-driven modernization projects. His tone was upbeat but cautious, noting the macro environment remains challenging.

Michael Knopp said the revenue increase was achieved in a tough market, with Germany still accounting for 84% of revenue and headcount ending at 11,298, up from 10,320. He detailed EBITDA of EUR 123.6 million, margin of 8.4%, net working capital of EUR 199 million, operating cash flow of EUR 85.6 million, and free cash flow of EUR 1.5 million. He also explained the restatement of 2024 figures, including a EUR 11 million revenue reduction, EUR 3.6 million EBITDA reduction, and EUR 6.1 million hit to consolidated earnings, and proposed a dividend of EUR 0.78, or about EUR 5 million total.

Analysts focused on weak cash conversion, asking how adesso will improve working capital; management said the issue stemmed from higher receivables and contract assets, with some late payment behavior, and that it is being analyzed. Questions also centered on IT Solutions profitability, where management said 2026 is still expected to remain negative on EBITDA but should improve, with breakeven still targeted for 2027. On daily rates, SaaS investment, and the restatement, management said price pressure remains high, platform investments totaled EUR 53 million with EUR 39 million tied to two insurance platforms, and no further restatement is expected. Later questions on AI and M&A drew a cautious response: management sees AI as both a major opportunity and a risk, but said it is too early to quantify the long-term impact, and they currently see no need for M&A.