Cancom SE shows sequential improvement in Q3 as restructuring takes effect

Investing.com -- Cancom SE (ETR:COK) on Thursday reported a clear sequential improvement in its third quarter results, particularly in profitability, as restructuring measures began to take effect during the company’s seasonally stronger second half.

The IT services provider’s revenue remained flat year-over-year at €423.9 million, with both the ’Germany’ and ’International’ segments contributing equally to growth. The company’s EBITDA recovered to €27.1 million, compared to €16 million in the second quarter of 2025, resulting in a margin of 6.4%.

This improvement was primarily driven by approximately €3 million in savings from personnel costs and reduced pressure from restructuring charges, which had amounted to around €4 million in the second quarter.

Despite the sequential improvement, EBITDA was still down 13% compared to the same period last year, when the margin stood at 7.3%. EBITA declined 24% year-over-year to €13.4 million, with the margin dropping to 3.2% from 4.2% in the third quarter of 2024.

Operating cash flow showed typical seasonality at -€12.6 million, slightly worse than the -€10.1 million reported in the same period last year. Free cash flow improved to -€14.1 million from -€21.6 million in the third quarter of 2024.

By segment, the Germany division reported revenue of €280.0 million, marginally up from €279.3 million in the previous year, though EBITDA margin decreased to 4.8% from 6.2%. The International segment posted revenue of €143.9 million, up slightly from €143.3 million, maintaining its EBITDA margin at 9.6%.

Management reported seeing increasing signs of stabilization and recovery, and expects a strong fourth quarter performance.

Cancom confirmed its reduced targets for fiscal year 2025, projecting sales of €1,650-1,750 million, EBITDA of €100-110 million, and EBITA of €46-56 million, which implies a significant improvement in the fourth quarter.

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