Finland's Tecnotree Q2 revenue and profit rises

Tecnotree Oyj

04/08/2026 07:15

Overview
Finland IT solutions provider's Q2 revenue rose 15% yr/yr, EBIT up 71%
Net income for Q2 more than doubled yr/yr
Q2 included EUR 5.2 mln impairment on trade receivables

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
Free cash flow outlook assumes devaluation of US dollar against the euro

Result Drivers
PROGRAMME EXECUTION - Revenue growth driven by execution of major customer programmes, especially in MEA and APAC regions
AI-OPS AND COST EFFICIENCY - Improved profitability attributed to operational discipline, platform scalability, cost-efficiency measures, and increased automation through AI-Ops
IMPAIRMENT LOSSES - Q2 included EUR 5.2 mln impairment on trade receivables due to forex crisis in Australasia and recoverability concerns in the Middle East

Company press release: ID:nWkr5V2LSq

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
 
EUR 19.90 mln
 
Q2 EPS
 
EUR 0.10
 
Q2 Net Income
 
EUR 2.40 mln
 
Q2 EBIT
 
EUR 8.60 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 7.1% below its August 3 closing price of €5.81
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 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.)