GFT Technologies (GFT) Q1 2025 earnings summary

Executive summary

• Achieved 4% revenue growth to EUR 222 million in Q1 2025, driven by strong performance in the Americas and insurance sector, despite volatile markets.

• Adjusted EBT reached EUR 15 million, in line with quarterly plans; annual guidance for 2025 confirmed and 5-year strategy execution ongoing with focus on digital banking, AI, and robotics.

• Major new contracts in the USA, Canada, Brazil, Colombia, Dubai, and APAC; successful integration of Sophos in Latin America.

• Entered the AI-driven robotics sector with a record AI project and expanded generative AI offerings.

• Structural challenges in the U.K. and Software Solutions segments addressed with transformation initiatives.

Financial highlights

• Q1 2025 revenue: EUR 222 million (+4% year-over-year); 7% growth in local currencies, with 3% FX headwinds.

• EBIT adjusted: EUR 15.1 million (-18% year-over-year); margin down to 6.8% (Q1 2024: 8.6%).

• Order backlog increased 14% year-over-year, driven by long-term U.S. deals, reaching EUR 462.3 million.

• EBITDA down 27% year-over-year, mainly due to higher personnel costs and weaker U.K./software solutions performance.

• Net cash at quarter-end was EUR -51.1 million after loan repayments.

Outlook and guidance

• 2025 revenue guidance maintained at EUR 913–930 million (7% growth); EBIT adjusted guidance updated to EUR 75 million due to methodology change.

• Free cash flow expected at EUR 45 million; net debt targeted at 0.2x EBITDA.

• Utilization rate for 2025 raised to 91% due to integration of Sophos.

• Expect stronger profitability in H2 2025 after Q2 restructuring.

• Long-term ambition: EUR 1.5 billion revenue and 9.5% EBIT margin by 2029.