RCS - PSI Software SE - PSI returns to profitability

PSI Software SEAnnouncement

27/03/2025 10:45

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RNS Number : 4956C  PSI Software SE  27 March 2025

PSI returns to profitability in the fourth quarter of 2024

- New orders in the fourth quarter at previous year's level of 59 million
euros

- Sales in the fourth quarter just below the previous year's level at 83.4
million euros

- Group EBIT positive again in the fourth quarter at 4.2 million euros

 Performance indicators (KEUR)  Jan. 1 - Dec. 31, 2024  Jan. 1 - Dec. 31, 2023  Change
 Sales                          260,838                 269,891                 −3.4 %
 EBIT                           −15,244                 5,562                   >100 %
 Group net result               −20,956                 324                     >100 %
 Earnings per share (EUR)       −1.35                   0.02                    >100 %

Berlin, March 27, 2025 -PSI Group achieved 3.4% lower sales of 260.8 million
euros in the 2024 financial year (Dec. 31, 2023: 269.9 million euros).
Recurring revenues from maintenance, upgrade and SaaS contracts increased
year-on-year to 106.0 million euros (Dec. 31, 2023: 103.5 million euros). At
83.4 million euros, Group sales in the fourth quarter of 2024 was almost on a
par with the same quarter of the previous year (Oct. 1-Dec. 31, 2023: 85.4
million euros). The operating result (EBIT) continued to improve compared to
the first three quarters of 2024, reaching 4.2 million euros in the fourth
quarter (Oct. 1-Dec. 31, 2023: 8.3 million euros). In 2024 as a whole, it was
still negative at −15.2 million euros (Dec. 31, 2023: 5.6 million euros)
after the impact of the cyberattack. The Group net result was correspondingly
−21.0 million euros (Dec. 31, 2023: 0.3 million euros). At 257 million
euros, new orders were 13.5% below the previous year's figure (Dec. 31, 2023:
297 million euros), but at 59 million euros in the fourth quarter already
matched the figure for the same quarter of the previous year. The order
backlog at the end of the year decreased to 152 million euros (Dec. 31, 2023:
170 million euros).

The Grid & Energy Management segment generated sales of 115.6 million
euros (44.3% of Group sales). Of this, annual recurring revenue accounted for
50.7 million euros or 43.9% of segment revenues. The segment recorded a
negative operating result of −14.8 million euros in 2024. In addition to the
reduction in sales, the main reason for the poorer operating result compared
to the other segments were additional expenses for the restart of IT systems
due to the increased security requirements of customers in the area of
critical infrastructure.

The second-largest segment, Process Industries & Metals, accounted for
65.7 million euros (25.2% of Group sales). The share of annually recurring
revenue amounted to 18.6 million euros (28.3% of segment revenues). The
segment achieved a positive operating result of 1.2 million euros, even taking
into account the considerable impact of the cyberattack. As in the previous
year, the North American business was the main driver of the segment's
operating business.

In the Discrete Manufacturing segment, following order postponements by new
customers, sales of 30.0 million euros (11.5% of Group sales) were achieved,
of which 57.7% were attributable to annually recurring revenue. The segment
achieved an operating result of 0.4 million euros. In addition to the effects
of the cyberattack, economic effects in the automotive and automotive supply
industry had a negative impact on business development in the 2024 financial
year.

The Logistics segment showed good business development in Eastern Europe and
achieved sales of 31.4 million euros (12.0% of Group sales). The share of
annually recurring revenue in this segment amounted to 39.8% and the operating
result to 0.7 million euros despite the losses from the cyberattack.

The number of employees in the Group at the end of the year increased to 2,434
(Dec. 31, 2023: 2,310). Cash flow from operating activities was clearly
negative at −19.7 million euros (Dec. 31, 2023: 16.8 million euros) as a
result of the cyberattack and the negative Group net result. At 26.5 million
euros, cash and cash equivalents were 24 million euros below the previous
year's figure (Dec. 31, 2023: 50.5 million euros), offset by higher current
financial liabilities of 21.1 million euros (Dec. 31, 2023: 2.1 million
euros). The Group has sufficient funds available for financing and a
significant improvement in cash and cash equivalents is expected in the coming
quarters.

As a provider of software products for operators of energy infrastructures, in
the steel and automotive industries and in the logistics sector, PSI Group is
well positioned with sustainable and highly relevant products and has made a
good start to the year with an order backlog of 152 million euros as of
December 31, 2024. In the first months of the new year, significant major
orders were won from existing customers as well as orders from new customers.
PSI has also taken its first successful steps towards the cloud transformation
of its business model and has secured a strategic partner for the
transformation process in Google Cloud.

For 2025, the PSI Executive Board expects growth in new orders and sales of
around 10% and an adjusted EBIT margin of around 4% despite the investments in
the new cloud/SaaS-based products. Recurring revenues from maintenance,
upgrade and SaaS contracts are expected to grow by at least 10%, meaning that
their share will reach around 42% in the financial year. Management also
expects a gross profit margin of at least 35% and anticipates that it will be
able to achieve a free cash flow of at least 15 million euros.

The PSI Group develops software products for optimizing the flow of energy
and materials for utilities and industry. As an independent software producer
with more than 2,400 employees, PSI has been a technology leader since 1969
for process control systems that ensure sustainable energy supply, production
and logistics by combining AI methods with industrially proven optimization
methods. The innovative industry products can be operated on-premises or in
the cloud. www.psi.de

Contact:

PSI Software SE

Karsten Pierschke

Head of Investor Relations and Corporate Communications

Dircksenstraße 42-44

10178 Berlin

Germany

Tel. +49 30 2801-2727

Email: KPierschke@psi.de

 

 

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