Q3 2025 Tietoevry Oyj Earnings Call Transcript
Key Points
- TietoEVRY Corp (FRA:TTEB) successfully completed the divestment of its tech services, leading to a more focused business structure.
- The company achieved a 4% top-line growth in Q3, with a strong order backlog, particularly in industry and banking.
- Cost optimization efforts have resulted in improved profitability across all business units, with a 19.3% margin in the quarter.
- The AI Boost program has been initiated to enhance AI governance and compliance, aiming to improve internal productivity and customer offerings.
- International expansion in the care segment is progressing, with significant contract wins in Finland and Catalonia, Spain.
- Underlying organic growth remained slightly negative due to a weak market environment.
- The banking segment experienced a 2% decline in underlying revenue growth, impacted by an expired mainframe contract.
- The care segment continues to be affected by legacy product declines, impacting growth and profitability.
- The company's leverage remains high at 2.4%, with efforts needed to reduce net debt to EBITDA.
- Market conditions remain challenging, particularly in the digital consulting segment, affecting growth prospects.
Good morning and welcome to Theore Every's 3rd quarter earnings webcast. My name is Tommi Järvenpää. I'm the Head of Theoto Everest Investor Relations.
This morning we will be discussing our Q3 results as well as progress with our actions to improve performance.
The teleconference line is now open and as always, we will be hosting Q&A after the presentation. With me here today are our CEO Andre Rognes and CFO Tommirelainen.
With this, I would like to hand over to Hendra. Please go ahead.
Thank you, Tommy, and welcome to the theaterre Q325 quarterly presentation.
It's been a very active and I would also say a productive quarter marked by the execution of our cost efficiency program.
Over the past few weeks we have also held a large number of meetings with investors and clients to gather valuable data points and insights to preparation for our capital markets day on November 25
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