Finland's Tecnotree Q1 net income rises 36%, sees collection challenges in Middle East

Tecnotree Oyj

28/04/2026 07:20

Overview

Finland IT solutions provider's Q1 revenue stable, down 0.2% yr/yr

Net income for Q1 rose 36.5% yr/yr

Free cash flow dropped 80% due to collection challenges in Middle East

Outlook

Tecnotree expects 2026 revenue to grow by low to mid single-digit percentage in constant currency

Company sees 2026 free cash flow above EUR 5.0 mln

Tecnotree maintains full-year 2026 guidance across all key metrics

Result Drivers

ORDER BACKLOG & PROGRAM EXECUTION - Co said stable revenue was supported by disciplined execution of key customer programs and a strong order backlog, especially in MEA and APAC regions

COLLECTION CHALLENGES IN MEA - Free cash flow was impacted by challenges in collections in the Middle East region due to war and geopolitical instability, leading to build-up of receivables and increase in DSO days

FAVOURABLE FX MOVEMENTS - Profitability in the quarter was also supported by favourable foreign exchange (FX) movements

Company press release: ID:nWkrZJVH4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
EUR 16.80 mln
Q1 EPS
EUR 0.11
Q1 Net Income
EUR 2.10 mln
Q1 EBIT
EUR 4.60 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Tecnotree Oyj is €5.40, about 6.6% below its April 27 closing price of €5.78

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)