Proact IT Group (PACT) Q1 2026 earnings summary

Executive summary

• Revenue grew 2.3% year-over-year to SEK 1,243 million, driven by higher system sales, consulting revenues from acquisitions, and despite negative currency effects and supply chain disruptions.

• Adjusted EBITA increased 46% to SEK 115 million, with margin expanding to 9.3% from 6.5%, reflecting higher gross margins and cost-efficiency measures.

• All business units returned to profitability, with notable improvements in NOBA, UK, and West segments, reflecting successful restructuring.

• Divestment of Netherlands staffing operations completed post-quarter to focus on core services, standardize offerings, and improve profitability.

• Appointed as a select European partner for Broadcom solutions and authorized VMware Cloud Service Provider, enhancing market positioning.

Financial highlights

• Total revenue reached SEK 1,243 million, up 2.3% year-over-year; organic growth was 2.9%.

• Adjusted EBITA was SEK 115 million (9.3% margin), up nearly 46% year-over-year.

• System sales grew 3.5% year-over-year to SEK 712 million; consulting revenue up 7.7%.

• Recurring revenue was SEK 429 million, slightly down year-over-year but up 1.3% like-for-like.

• Earnings per share at SEK 1.79 for the quarter; profit after tax rose to SEK 78 million.

Outlook and guidance

• Q2 expected to remain strong due to continued customer pull-forward investments, but system sales may normalize later in the year as these effects subside.

• Memory price increases and extended lead times expected to persist through most of 2026, supporting near-term results.

• Further effects from last year’s efficiency program expected, especially in West and Central units.

• Underlying demand for secure, resilient infrastructure remains strong, with focus on hybrid cloud, security, and AI-related infrastructure.