Asseco South Eastern Europe (ASE) Q2 2026 TU earnings summary

Executive summary

• Operating profit grew 30% year-over-year in Q2 2026, mainly driven by strong Banking Solutions performance, despite modest revenue growth.

• Group sales revenue increased 1% in Q2 and 3% in H1 2026, with profitability improvements attributed to favorable revenue mix and cost discipline.

• Cash flow and cash conversion rates were excellent, with significant improvement over the last 12 months.

• Net profit was slightly lower year-over-year, mainly due to financial activity and goodwill write-offs.

Financial highlights

• Q2 2026 revenue reached €102.3m (+1% YoY); H1 2026 revenue was €204.7m (+3% YoY); EBITDA grew 25% in Q2 and 18% in H1.

• Q2 2026 EBIT rose 27% to €15.3m; H1 2026 EBIT up 21% to €28.9m.

• Q2 2026 NPAT was €10.1m, down 4% YoY due to write-offs; non-IFRS NPAT increased 10% to €10.8m.

• Operating cash flow for H1 2026 was €37.8m, with free cash flow at €16.9m.

• Net cash at June 30, 2026, was €26.2m, higher than last year.

Outlook and guidance

• 2026 full-year revenue backlog is forecast at €379.2m, up 3% from 2025; margin1 backlog up 7%.

• Profitability improvements expected to continue, with focus on efficiency, profitability, and eliminating loss-bringing units.

• Positive outlook for the second half of the year and initial optimism for 2027.