Half Year 2026 Gofore Oyj Earnings Call Transcript
Key Points
- Gofore PLC (OHEL:GOFORE) reported a strong 32% net sales increase in Q2, with organic growth of 1.8%, marking two consecutive quarters of organic growth.
- Adjusted EBITA margin improved significantly to 7.2% in Q2, up 4.6 percentage points year-on-year, driven by higher sales, acquisition synergies, and better fixed-price project management.
- The company's strategic focus on Defense & Space is paying off, with this segment generating EUR18 million in net sales and over 100 FTEs, benefiting from geopolitical tailwinds and unique convergence of defense and space data.
- Gofore PLC (OHEL:GOFORE) has a strong balance sheet with an equity ratio of 50%, cash of EUR27 million, and low net debt, providing flexibility for further M&A and growth investments.
- Customer stickiness is high, with the number of big customers increasing from 45 to 53, and the company has secured major public sector wins, including ITZBund and the National Land Survey of Finland.
- The divestment of the product design and technical documentation business to CoE Group is a strategic move to focus on core digital technology, with a cooperation agreement ensuring continued full service for customers.
- Profitability remains below the long-term target of 15% adjusted EBITA, with the current 7.2% margin indicating significant room for improvement.
- Organic growth is modest at 1.8%, and the company acknowledges that growth is investment-driven, with targeted investments in sales and marketing and the DACH region impacting short-term profitability.
- The DACH region faces economic uncertainty, with the German economy struggling, which could hinder expected moderate growth improvements in the second half.
- The divestment of the product design and technical documentation business will have a negative impact on growth starting in September 2026, and a slight negative impact on profitability in the short term.
- Attrition remains elevated at over 10% for the first half, partly due to restructuring measures, and the company expects transformation-related attrition to continue, which could affect morale and continuity.
- The company faces a bottleneck in recruiting necessary experts for the Defense & Space business, which could limit growth in this high-demand area.
Good day, everyone, and welcome to Gofore's Q2 and First Half Results Presentation. Today, in typical fashion, it will be me, Mikael Nylund, the CEO of Gofore Group; and our fresh-ish CFO, Saara Ukkonen, who will be presenting the results, and we will start by that. Then we'll have a little bit of a special segment in today's program with an update of Gofore's Defense & Space business, where we will be joined by Markus Asikainen and Timo Latvala, who are the responsibles of respective business areas at Gofore.
And then we'll round off by looking at targets outlook and some H2 priorities for us. We will have time for questions at the end of the presentation or today's stream. So you can already whenever you feel like it, you can post those questions on the streaming platform. And Emmi from our Investor Relations here will be screening your questions and looking into those, and we'll be taking them at the end.
But without further ado, let's go and let's start with a short overview of what has happened.
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