Admicom Q2 2025 slides: AI initiatives advance amid slow market recovery

Introduction & Market Context

Admicom Oyj (HEL:ADMCM) presented its Q2 2025 interim report on July 8, 2025, highlighting the company’s strategic initiatives and financial performance in a challenging construction market environment. Led by CEO Simo Leisti and CFO Satu Helamo, the presentation emphasized the company’s focus on artificial intelligence development and billing model transformation to drive future growth.

The Finnish construction software provider reported modest growth figures as the construction industry continues to recover at a slower pace than anticipated. Admicom’s stock closed at €53.40 on the presentation day, up 1.91% from the previous close, suggesting cautious optimism from investors despite the challenging market conditions.

Quarterly Performance Highlights

Admicom reported mixed financial results for Q2 2025, with growth in key metrics but at a slower pace than in previous periods. The company achieved 6.0% Annual Recurring Revenue (ARR) growth compared to 6.7% in Q2 2024, with the Bauhub acquisition contributing significantly to this growth.

As shown in the following key figures from the presentation:

The company’s recurring revenue growth reached 4.3% (compared to 1.7% in Q2 2024), while total revenue growth was 2.2% (versus 0.7% in Q2 2024). However, profitability metrics showed some pressure, with adjusted EBITDA at 32.0%, down from 38.4% in the comparable period. Customer churn increased slightly to 6.0% from 5.6% at the end of 2024.

A detailed breakdown of the financial performance reveals the impact of various factors on the company’s results:

The company’s ARR showed minimal quarter-to-quarter growth of just 0.2%, with annual adjustment fees having a negative impact of 1.0%. The ARR trend over recent quarters illustrates the challenging growth environment:

Strategic Initiatives

Admicom is actively developing AI solutions to enhance its product offerings and provide additional value to customers. The company has been piloting AI functionalities with 15 construction companies, focusing on practical applications that address specific industry needs.

The presentation highlighted several AI use cases currently being piloted:

These AI initiatives are part of Admicom’s broader strategy to differentiate its offerings in a competitive market. The company is also implementing a significant transformation of its Ultima and Accounting billing model, with annual adjustment fees being gradually phased out starting from Q4 2025. This change aims to improve revenue predictability, operational efficiency, and customer experience.

The company also announced the appointment of Henna Kotilainen as Chief Strategy Officer, effective September 1, 2025. Kotilainen brings expertise in strategy and business development from her previous role at KONE, where she served as Director of Modernization Transformation & Growth.

Forward-Looking Statements

Despite the challenging market conditions, Admicom maintained its financial outlook for 2025, projecting ARR growth of 8-14% and total revenue growth of 6-11%. The company expects adjusted EBITDA to be in the range of 31-36%.

The outlook presentation highlighted both growth drivers and challenges:

Admicom’s long-term vision remains ambitious, with the company aiming to become "the first choice of partner in the European construction software ecosystem" and targeting €100 million in ARR by 2030. This vision is supported by a mission focused on customer productivity, workplace quality, and AI-enabled platform development.

The company’s strategy execution is organized around seven streams, including growth acceleration, internationalization, unified platform experience, and accounting service of the future.

Market Challenges

The presentation acknowledged the slow recovery in the construction market, which has impacted Admicom’s growth. Revenue growth in the first five months of 2025 was just 2% year-over-year, albeit against a low comparison point from the previous year.

The following chart illustrates the gradual recovery in construction revenue:

Order books in construction remain low, and the company noted that the speed of market recovery has been slower than expected. This challenging environment has affected sales performance, though the company reported a 4% increase in sales bookings and noted that more than 20% of customers are now using multiple Admicom products.

The company’s financial performance was also impacted by a decline in annual adjustment fees, which reduced ARR by approximately €0.4 million year-over-year. Admicom is addressing this issue through its billing model transformation, which aims to create a more predictable revenue stream and improve customer experience.

As Admicom navigates these challenges, its focus on AI development, strategic acquisitions, and billing model transformation represents a proactive approach to maintaining growth and competitiveness in a difficult market environment.

Full presentation:

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