Tietoevry Corporation INTERIM REPORT23 October 2025 9:00 a.m. (EEST)
· Organic growth 4%, or -1% eliminating the revenue related to a court ruling
in Tietoevry Banking
· Tietoevry Care and Industry back to growth
· Adjusted operating margin 19.3% (12.8%), or 15.2% eliminating the court
ruling effect in Tietoevry Banking
· Improved profitability in all businesses
· Cost optimization progressing towards the 2026 target of EUR 115 million -
run-rate savings of EUR 75 million achieved by the end of the third quarter
· The divestment of the Tech Services business completed during the quarter
The divestment of Tietoevry Tech Services was completed on 2 September. The
business has been presented as a discontinued operation as from the first
quarter of 2025. The financial information presented in this report concerns
continuing operations, unless otherwise stated. The comparative information has
been restated accordingly.
The full interim report with tables is available at the end of this release.
[][][][][][][][]
7-9/2025 7-9/2024 1-9/2025 1-9/2024
Revenue, EUR million 454.2 436.3 1388.1 1407.6
Organic growth[1)], % 4 -1 -1 0
Acquisitions and 0 1 0 3
divestments, %
Foreign exchange 0 -1 0 -1
rates, %
Total growth, % 4 0 -1 2
Organic growth adjusted for 4 -2 -1 1
working days[4)], %
Operating profit/loss 56.5 35.5 16.4 108.3
(EBIT), EUR million
Operating margin (EBIT), % 12.4 8.1 1.2 7.7
Adjusted[2)] operating 87.8 55.9 181.3 167.0
profit (EBITA[3)]), EUR
million
Adjusted[2)] operating 19.3 12.8 13.1 11.9
margin (EBITA[3)]), %
Cash flow from operating 44.7 58.2 193.4 198.1
activities, EUR million[5)]
Interest-bearing net debt, 551.9 900.5 551.9 900.5
EUR million[5)]
Full-year outlook for 2025 updated on 15 September
Tietoevry expects its organic[1)] growth to be in the range of -2% to 0%
(revenue in 2024: EUR 1 879.5 million). The company estimates its full-year
adjusted operating margin[2)] (adjusted EBITA[3)]) to be 12.7-13.3% (12.0% in
2024).
The profitability outlook includes a negative IFRS 5-related impact of
approximately 1.1 percentage points on the adjusted operating margin (EBITA) due
to the Tech Services divestment. The impact comprises the costs that the company
was not able to allocate to discontinued operations prior to the closing of the
divestment on 2 September, and transition services income after that date.
1) Adjusted for currency effects, acquisitions and divestments
2) Adjustment items include restructuring costs, capital gains/losses,
impairment charges and other items affecting comparability
3) Profit before interests, taxes, amortization of acquisition-related
intangible assets, goodwill and other intangible asset impairment
4) Company estimate
5) Cash flows combine the continuing and the discontinued operations; balance
sheet comparative information not restated.
CEO comment by Endre Rangnes
Progressing with execution of our strategic priorities: customer first, growth
and lean cost structure
"Our third-quarter performance was healthy with early signs of margin recovery.
Our organic growth totalled 4% and adjusted operating margin 19.3% - this
development was largely driven by revenue related to a court ruling in Tietoevry
Banking. When eliminating the positive contribution of this revenue, underlying
growth remained at -1%. On a positive note, our underlying margin improved to
15.2% from 12.8% year-on-year, with higher profitability in all businesses,
following the execution of our cost optimization efforts. Tietoevry Care and
Tietoevry Industry turned to growth whereas revenue development in Tietoevry
Create remained negative due to continued challenging market conditions.
Following the successful divestment of Tietoevry Tech Services during the
quarter, we are now fully focused on executing our strategic priorities. This
marks a pivotal phase for the company, where we are driving forward with a
sharpened emphasis on customer centricity, growth and a lean cost structure -
anchored by a strong execution mindset.
To accelerate commercial impact, we have launched a comprehensive sales focus
programme across business units. This initiative includes a new sales governance
model, better aligning demand and supply of competencies for the benefit of our
customers, as well as harmonization of CRM systems and targeted sales training.
These efforts are designed to reinforce customer trust, strengthen the sales
pipeline and enhance incentive effectiveness. Furthermore, our AI programme will
help us adopt the best practices of embedding AI in both offerings and sales -
and provide AI tools to improve internal productivity.
We are actively transforming our business profile to support sustainable growth
and improved profitability. Our strategic focus is on expanding cloud-native and
AI-enabled solutions. Our ambition for growth is higher than our current
performance, and we are pursuing international expansion for our proven Nordic
software solutions. Early market responses - such as our latest win in
Catalonia, Spain - are encouraging, though we expect the full impact to
materialize over time due to longer lead cycles in new markets. We remain
confident in our direction and committed to delivering long-term value for our
customers and shareholders.
Our cost optimization programmes introduced earlier this year are progressing as
planned towards the EUR 115 million target by the end of 2026. We achieved run
-rate savings of EUR 75 million by the end of the third quarter - well in line
with the ambition for this year.
We are excited to introduce the next chapter of the company as well as our
business plans at our Capital Markets Day in November. Reflecting on the active
dialogue I have had with investors and across our stakeholder groups in the past
months, we can be proud of our strong foundation, which comprises our long-term
customer relations, relevant and renowned partners, market-leading vertical
software assets, innovation capabilities and our talented people. This existing
foundation combined with our clear strategy and relentless execution are the
cornerstones of our future success.”
Financial performance by segment
Revenue, Revenue, Growth, Organic Adjusted Adjusted
Adjusted Adjusted
% growth, operating operating
operating operating
EUR EUR %
million million profit, profit,
margin, % margin, %
EUR EUR
million million
7-9/2025 7-9/2024 7-9/2025 7-9/2024 7-9/2025 7-9/2024
Tietoevry 184.3 190.9 -3 -3 23.6 23.0 12.8
12.1
Create
Tietoevry 157.4 137.9 14 14 43.8 18.3 27.8
13.3
Banking
Tietoevry 54.8 53.3 3 2 17.4 16.8 31.7
31.6
Care
Tietoevry 64.0 61.7 4 3 12.4 10.1 19.4
16.3
Industry
Eliminations -6.3 -7.5 — — -9.4 -12.4 —
—
and
non
-allocated
costs
Group total 454.2 436.3 4 4 87.8 55.9 19.3
12.8
For further information, please contact:
Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen
(at) tietoevry.com
Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288,
tommi.jarvenpaa (at) tietoevry.com
A webcast for analysts and media will be held on 23 October at 10.00 a.m. EEST
(9.00 a.m. CEST, 8.00 a.m. UK time). Endre Rangnes, President and CEO, and Tomi
Hyryläinen, CFO, will present the results online in English. The
presentation (https://tietoevry.events.inderes.com/q3-2025) can be followed on
Tietoevry's website (https://www.tietoevry.com/investors).
To take part in the questions and answers session after the presentation you
will need to dial in by phone. You can access the teleconference by registering
on this link (https://events.inderes.com/tietoevry/q3-2025/dial-in). After
registration you will be provided phone numbers, user ID and a conference ID to
access the conference.
The event is recorded and it will be available on demand later during the day.
Tietoevry publishes its financial information in English and Finnish.
Tietoevry Corporation
DISTRIBUTION
Nasdaq Helsinki
Nasdaq Stockholm
Oslo Børs
Principal Media
Tietoevry is a leading software and digital engineering services company with
global market reach and capabilities. We provide customers across different
industries with mission-critical solutions through our specialized software
businesses* Tietoevry Care, Tietoevry Banking and Tietoevry Industry, as well as
our digital engineering business Tietoevry Create. Our around 15 000 talented
vertical software, design, cloud and AI experts are dedicated to empowering our
customers to succeed and innovate with latest technology.
Tietoevry's annual revenue is approximately EUR 2 billion. The company's shares
are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo
Børs. www.tietoevry.com