Finland's Etteplan Q2 revenue falls 2.7% on deteriorating automotive demand
Finland's Etteplan Q2 revenue falls 2.7% on deteriorating automotive demand
Overview
Finland technology services firm's Q2 revenue fell 2.7% yr/yr amid weak demand
Q2 operating profit (EBITA) and EBIT declined from prior year
Company narrowed full-year revenue and EBIT guidance due to persistent market uncertainty
Outlook
Etteplan now sees 2026 revenue at EUR 360-375 mln, down from EUR 360-380 mln
Company expects 2026 EBIT of EUR 19-22 mln, down from EUR 19-23 mln
Etteplan says market uncertainty remains high due to geopolitical tensions and slow investment activity
Result Drivers
SECTOR TRENDS - Defence industry demand remained strong, energy moderate, mining picked up, while automotive demand deteriorated, especially in Sweden and Germany
CHINA ACTIVITY - Number of hours sold in China increased substantially during the quarter
AI-DRIVEN SOLUTIONS - Share of revenue from AI-driven service solutions rose to 6% from 4% yr/yr
Company press release: ID:nWkr59cbBF
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| EUR 88.94 mln |
|
Q2 EBIT |
| EUR 4.19 mln |
|
Q2 EBITA |
| EUR 5.47 mln |
|
Q2 EBIT Margin |
| 4.70% |
|
Q2 ROCE |
| 7.90% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Etteplan Oyj is €7.50, about 2.6% below its August 4 closing price of €7.70
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)