GFT Technologies (GFT) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue grew 3% year-over-year to €441.5–442 million, driven by strong Americas and APAC performance, offsetting European weakness.

• Adjusted EBIT for H1 2025 was €30–30.1 million, with a stable 6.8% margin.

• Net income fell 37% to €13.5 million due to structural adjustments and market uncertainty.

• Full-year 2025 guidance was revised downward due to FX headwinds, underperformance in the U.K. and Software Solutions, and extended structural adjustments.

• Strategic turnaround initiatives and the Megawork acquisition in Brazil aim to drive future growth and margin improvement.

Financial highlights

• H1 2025 revenue reached €441.5–442 million (+3% year-over-year), with Americas, UK & APAC up 8% and Continental Europe down 4%.

• Adjusted EBIT margin for H1 2025 was 6.8%, stable versus prior year.

• Net income was €13.5 million (-37% year-over-year); EPS €0.51 (-36%).

• Q2 2025 revenue was €219.6 million, up 1% year-over-year; adjusted EBIT in Q2 was €15.05 million, up 30%.

• Order backlog increased 1% year-over-year, or 4% in constant currencies.

Outlook and guidance

• 2025 revenue guidance lowered to €805–885 million (2% growth, 5% in constant currencies) due to FX headwinds and turnaround efforts.

• 2025 adjusted EBIT expected at €65 million (7.3% margin); EBT at €45 million.

• Margin improvements anticipated in 2026, with return to revenue growth in 2027 for U.K. and Software Solutions.

• Free cash flow for 2025 expected at ~€35 million; net debt/EBITDA ~0.8.

• Utilization expected at ~91% for 2025.