Solteq - Weaker than expected quarter
Solteq’s Q3 fell slightly short of our expectations. The difficult market environment continued to impact the result despite efficiency measures and cost control.
- Comparable net sales in Q3 were EUR 10.4m (Q3’24: EUR 11.0m), down 5.2% y/y. Reported net sales were also EUR 10.4m (Q3’24: EUR 11.4m) vs. Evli EUR 10.9m, down 9.1%.
- Comparable EBITDA was EUR 0.4m (Q3’24: EUR 1.1m).
- Comparable operating profit was EUR 0.1m (0.9% margin, Q3’24: EUR 0.5m) vs. Evli EUR 0.5m. Efficiency measures and cost controls were not enough to counter the negative impact of the sluggish market on the results.
- Retail & Commerce: Comparable revenue in Q3 amounted to EUR 7.7m (Q3’24: EUR 8.1m) vs. Evli EUR 8.0m, which is a decline of 4.0% in comparable terms. The decline in revenue continued to be impacted by the challenging market environment. The comparable operating result was EUR 0.6m in line with our estimates.
- Utilities: Revenue in Q3 was EUR 2.6m (Q3’24: EUR 2.9m) vs. Evli EUR 2.9m, down 8.7% y/y. Adjusted EBIT came in at EUR -0.4m (Q3’24: -0.1m), below our estimate of EUR -0.1m. The low invoicing rate in Utilities consulting business unit continued to weigh on performance.
- Net debt amounted to EUR 22.6m (Q2’25: 21.3m), with cash at EUR 1.1m, down from EUR 1.6m in the previous quarter.
- Guidance for 2025 (reiterated): Comparable revenue will decrease slightly (2024: EUR 48.8m excluding the divested healthcare software solutions business), while the comparable operating result will improve significantly (2024: EUR 0.7m).
- YTD comparable operating result is 0.3m, implying a significant improvement is needed in Q4 to meet guidance.
- Market commentary turned slightly more cautious compared to Q2, particularly for the Retail & Commerce segment.