Columbus Q2 2025 slides: Revenue declines as company adjusts full-year guidance

Introduction & Market Context

Columbus (WA:CLC) A/S (CPH:COLUM) presented its Q2 2025 financial results on August 21, 2025, revealing a 4% year-over-year revenue decline amid continued challenges in Nordic markets. The company’s stock fell 1.21% to 9.94 DKK following the presentation, which was delivered by CEO Søren Krogh Knudsen and CFO Brian Iversen.

The IT services provider reported mixed results across business lines and geographic regions, with strong performance in the US market contrasting sharply with weakness in its traditional Nordic strongholds. This quarter’s performance represents a significant shift from Q1 2024, when the company had reported a 32% EBITDA increase despite revenue challenges.

Quarterly Performance Highlights

Columbus reported Q2 2025 revenue of 410 million DKK, down 4% from 427 million DKK in Q2 2024. Despite the revenue decline, the company achieved a contribution margin of 79 million DKK, representing a 1 percentage point improvement over the same period last year.

As shown in the following financial highlights chart, EBITDA fell to 16 million DKK, a 27% decrease from Q2 2024’s 22 million DKK when adjusted for extraordinary income. Cash flow from operating activities showed improvement, increasing 13% to 18 million DKK from 16 million DKK in the prior year.

The company attributed the revenue decline to "continuous challenging conditions in the Nordic market," while noting that improved project execution helped boost contribution margins. Management highlighted tight control of customer payment terms as a factor in the improved cash flow performance.

Business Line & Geographic Performance

Columbus’s business lines showed divergent performance in Q2 2025. The company’s largest segment, Dynamics 365, saw revenue decline 9% to 234 million DKK, while its contribution margin fell 2 percentage points to 21%. In contrast, M3 and Digital Commerce showed revenue growth of 2% and 4% respectively, with significant margin improvements.

The following chart illustrates the revenue performance across Columbus’s business lines:

Particularly noteworthy was the Digital Commerce segment’s 16 percentage point margin improvement, reaching 12% in Q2 2025. The M3 business line also showed strong margin growth, increasing 7 percentage points to 21%.

Geographically, Columbus experienced its strongest growth in the US market, where revenue surged 30% to 26 million DKK. This growth contrasted sharply with performance in Nordic markets, where Norway saw a 19% revenue decline and Denmark fell 12%. The UK market showed modest 2% growth.

The following chart details revenue performance across Columbus’s geographic markets:

"The US market continues to show strong momentum, while we face ongoing headwinds in our Nordic markets," noted CEO Søren Krogh Knudsen during the presentation. "We’re implementing targeted strategies to address these regional disparities."

Strategic Initiatives

Columbus outlined several strategic focus areas designed to navigate the challenging market landscape. The company is emphasizing organizational scaling, artificial intelligence integration, and a strategic review process aimed at reinvigorating growth.

The presentation highlighted performance ratings across business lines, with varying levels of success in different segments:

"Artificial intelligence represents both a challenge and an opportunity for our business," Knudsen explained. "We’re investing in AI capabilities while also focusing on efficiency improvements across our organization."

The company noted that efficiency for M3 and Digital Commerce has "increased significantly," contributing to the margin improvements seen in these business lines despite the overall revenue challenges.

Forward-Looking Statements

Based on first-half performance, Columbus has adjusted its full-year guidance for 2025. The company now expects revenue of approximately 1.7 billion DKK with an EBITDA margin between 7-9%.

This guidance represents a significant downward adjustment from previous expectations. In Q1 2024, the company had targeted organic growth of 7-9% with an EBITDA margin of 10-12%.

"While we’re encouraged by margin improvements in key segments and strong US growth, the persistent challenges in Nordic markets necessitate a more conservative outlook for the remainder of 2025," CFO Brian Iversen stated during the presentation.

The adjusted guidance and mixed quarterly results suggest Columbus continues to face a challenging business environment, particularly in its core Nordic markets, even as it makes progress on strategic initiatives and efficiency improvements in certain business segments.

Full presentation:

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