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Introduction & Market Context
Exsitec Holding AB (STO:EXS) released its Q2 2025 quarterly report on July 11, highlighting strong recurring software revenue growth amid challenging market conditions. The Nordic IT solutions provider saw its stock rise 1.47% to 138.50 SEK following the presentation, reflecting investor confidence despite mixed results.
The company, which provides IT solutions to medium-sized businesses across the Nordic region, continues to execute its acquisition-driven growth strategy while facing what management described as "passive customer sentiment." With a customer base of 5,500 companies and a workforce that has grown to 856 employees, Exsitec maintains its position as a significant player in the Nordic IT services market.
Quarterly Performance Highlights
Exsitec reported Q2 2025 net sales of 228 MSEK, representing an 8% increase compared to the same period last year. For the first half of 2025, net sales reached 468 MSEK, up 11% year-over-year. However, as noted in the earnings call, organic growth was negative at -2%, indicating that acquisitions were the primary driver of the company’s expansion.
As shown in the following chart of quarterly net sales growth:
The company’s adjusted EBITA for Q2 2025 was 44 MSEK, showing a modest 1% improvement over Q2 2024. For the January-June period, adjusted EBITA reached 90 MSEK, a more substantial 7% increase compared to the previous year.
The standout metric in Exsitec’s quarterly performance was the 28% year-over-year growth in recurring net revenue from software, which reached 207 MSEK in Q2 2025. This recurring revenue stream has shown consistent growth over the past several years, providing the company with increased stability and predictability in its business model.
Segment Performance Analysis
Exsitec’s performance varied significantly across its geographic segments. The company’s operations are divided into three main regions: Sweden, Norway, and Denmark & Finland, with each showing different growth trajectories and profitability levels.
Sweden remains the company’s largest market, with last twelve months (LTM) net sales of 582 MSEK and adjusted EBITA of 99 MSEK. Norway generated LTM net sales of 197 MSEK with adjusted EBITA of 19 MSEK, while Denmark & Finland contributed 79 MSEK in net sales and 14 MSEK in adjusted EBITA.
The following chart illustrates the performance across these segments:
According to the earnings call transcript, Norway showed significant improvement in EBITA margins, rising from 5% to 11%, despite experiencing a sales decline. This suggests successful cost management and operational efficiency improvements in this region.
Exsitec’s revenue streams remain heavily weighted toward services, which account for 64% of total revenue. Software (ETR:SOWGn) sales contribute 24%, while support and infrastructure make up the remaining 12%.
Strategic Initiatives & Outlook
Exsitec’s business priorities for 2025 focus on three key areas: sales execution, operational excellence, and integrating acquired companies while pursuing further M&A opportunities. The company noted an increase in leads from potential customers, which could help offset the current passive sentiment among existing clients.
The company maintains ambitious financial goals, targeting at least 15% annual growth in both net sales and adjusted EBITA per share. Its dividend policy aims to distribute 20-40% of profit after tax, with a current yield of 1.28% according to the earnings report.
Exsitec serves a diverse range of industries, as illustrated by its customer portfolio:
The company’s employee base has grown substantially over the years, from 77 in 2014 to 856 in the last twelve months ending Q2 2025, reflecting its expansion strategy across the Nordic region.
Market Reaction & Analyst Perspectives
Following the presentation, Exsitec’s stock price increased by 1.47% to 138.50 SEK, suggesting that investors responded positively to the results despite the challenges in organic growth. The stock is currently trading well above its 52-week low of 98 SEK but remains below its high of 187 SEK.
Analysts have focused on the sustainability of the recurring software revenue growth and the potential for improving organic growth through new customer acquisitions. According to the earnings call, two analysts recently revised their earnings expectations upward for the upcoming period, indicating confidence in the company’s trajectory.
The company’s overall financial health score is rated as "GOOD" at 2.73, with particularly strong momentum in recent months. However, investors should note the risks associated with the negative organic growth and the heavy reliance on acquisitions for expansion, which could pose challenges if suitable acquisition targets become scarce or integration issues arise.
As Exsitec continues to navigate the current market conditions, its strong recurring revenue growth and strategic focus on operational excellence may help offset the challenges posed by passive customer sentiment and organic growth limitations.
Full presentation:
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