Earnings call transcript: adesso posts strong H1 2026 growth, stock rises

adesso SE announced a 13% increase in first-half revenue and a 21% rise in operating EBITDA, driven by higher utilization, stronger order intake, and continued demand for digital projects. This performance came despite a weak domestic economy in Germany, where GDP growth slowed to 0.5%. The company maintained its full-year guidance and highlighted the positive impact of its AI push, including the omni:us acquisition.

Stock price rose 1.16% to $60.8, but remains 41.7% below its 52-week high. With a market cap of $449 million and a P/E ratio of 14.69, adesso's valuation reflects investor caution, despite solid operational progress. H1 revenue grew 13%, while EBITDA grew 21%. Growth in sectors like utilities, insurance, banking, and the public sector helped offset weakness in automotive, where revenue fell 16%.

The company's headcount grew by 9%, below the 13% revenue increase, and management expects that gap to widen as AI tools improve productivity. Gross profit margin stands at 18.2%, which is weak compared to industry peers, highlighting the importance of operational efficiency through AI. No EPS or revenue consensus was provided, so direct beat or miss cannot be measured.

H2 is expected to benefit from nine additional working days, stronger utilization, and a healthier order book. The company anticipates higher license revenue in the second half, though timing is uncertain due to deals depending on a few large customers. Adesso expects EBITDA growth of 31% to 35% and targets an EBITDA margin of at least 8.4% for the year.

CFO Michael Knopp expressed satisfaction with the H1 performance, emphasizing the company's double-digit growth despite the weak economy.