Adesso stock rises on strong Q4 results and 2025 outlook

Published 27/03/2025, 10:06
Adesso stock rises on strong Q4 results and 2025 outlook

Investing.com -- Shares of Adesso AG (ETR:ADNGk) (ETR:ADN1) edged up 1% today following the company’s release of its audited fourth quarter figures, which confirmed the preliminary results from mid-February.

Adesso reported a 14.2% increase in sales to €1,297 million for 2024, up from €1,136 million the previous year, with an organic growth of 14%. The company’s EBITDA rose to €98.3 million in 2024, marking a 23% increase YoY and outpacing sales growth.

The improved EBITDA margin of 7.6% for the full year, up from 7.0% in 2023, was noted despite high investments in the product business. Adesso also highlighted a significant recovery in the second half of 2024, with the EBITDA margin reaching 10.6%, driven by a reduction in hiring and a gradual increase in capacity utilization.

The company anticipates further improvements in 2025, with sales expected to reach between €1.35-1.45 billion and EBITDA projected to grow to €105-125 million. Analysts’ consensus is aligned with the upper end of these forecasts.

Additionally, Adesso announced a dividend proposal of €0.75 per share for 2024, which is an increase from the previous year’s €0.70 per share. The company’s guidance for 2025 is in line with market expectations, and with a forecasted increase in capacity utilization and a resurgence in the product business starting in the second half of the year, the EBITDA margin is expected to return to the target range of 11-13%.

In response to the news, an analyst from Jefferies commented, "the positive margin trend is expected to continue in 2025," reflecting optimism about Adesso’s financial health and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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