Earnings call transcript: Sitowise Q2 2025 shows mixed results, shares slip

Sitowise released its Q2 2025 earnings call, reporting mixed results across its business divisions. Net sales totaled EUR 43.1 million, while the adjusted EBITA margin stood at 7.4% and the operating result was EUR 1.2 million. Infra remained the primary growth driver, while Digital Solutions faced challenges and Buildings experienced market weakness.

The stock remained stable at $2.64, down 0.38% from the previous close. The company's Infra segment experienced strong growth, driven by demand from private-sector customers such as data centers, energy infrastructure, and security projects. Buildings saw an improvement in utilization but witnessed a slight decline in sales due to a weak residential construction market.

Digital Solutions continued to struggle with lengthy sales cycles and delayed customer decisions. Sitowise completed the sale of Sitowise Sverige to Sweco on July 31, aiming to concentrate resources on high-growth and profitable segments. Acting CEO Jani Mikkola emphasized the company's focus on its core strengths. The earnings forecast included an EPS of $0.0167 and revenue of $47.9 million for the June 2026 reporting period, but no actual EPS or revenue figures were provided.

The call primarily discussed Q2 2025 performance, which showed stable profitability despite a mixed market. The 7.4% adjusted EBITA margin matched the previous year's figure, indicating consistent execution. The stock closed at $2.64, down 0.38% from the prior close of $2.65. Analysts view the stock as undervalued, with a market capitalization of $109.6 million and revenue of $218.9 million over the past twelve months.

Sitowise trades at an EV/EBITDA multiple of 28.25. The company projects EPS of $0.03, $0.05, and $0.12 for the next quarter, following quarter, and full year, respectively, with revenue forecasts of $42.45 million, $51.33 million, and $200.25 million. Despite the mixed results, InvestingPro assigns Sitowise a Financial Health Score of 1.9, indicating fair performance, with strong marks in price momentum.