Qt Group Plc, Stock exchange release, October 30, 2025 at 1:00 pm EET
This release is a summary of Qt Group Plc's Interim Statement for January
-September 2025. The complete report is attached to this release as a PDF file,
and it is also available on the company's website at www.qt.io/investors
Third quarter 2025: Comparable net sales on previous year's level
July-September 2025
· Net sales decreased 3.4 percent to EUR 40.7 million (EUR 42.2 million). The
effect of exchange rates on the comparison period's net sales was EUR -1.4
million and at comparable exchange rates, net sales decreased by 0.2 percent.
· Operating profit (EBITA) was EUR 4.3 million (EUR 10.3 million) or 10.5
percent (24.5 %) of net sales
· Operating profit (EBIT) was EUR 2.3 million (EUR 8.3 million) or 5.6 percent
(19.7 %) of net sales
· Earnings per share were EUR 0.06 (EUR 0.30).
January-September 2025
· Net sales decreased 1.0 percent to EUR 139.2 million (EUR 140.6 million).
The effect of exchange rates on the comparison period's net sales was EUR -2.6
million and at comparable exchange rates, net sales increased by 0.9 percent.
· Operating profit (EBITA) was EUR 24.4 million (EUR 39.8 million) or 17.5
percent (28.3 %) of net sales
· Operating profit (EBIT) was EUR 18.3 million (EUR 33.8 million) or 13.2
percent (24.0 %) of net sales
· Earnings per share were EUR 0.52 (EUR 1.13).
The figures in brackets refer to the comparison period, i.e., the corresponding
period in the previous year. The percentage of change in net sales at comparable
exchange rates is calculated by translating the net sales from the comparison
period 2024 with the actual exchange rates of the reporting period 2025 and by
comparing the reported net sales in 2025 with the calculated 2024 net sales at
comparable exchange rates.
Key figures
[][][][]
EUR 1,000 7 7 Change, 1-9/2025 1 Change,
1
-9/2025 -9/2024 % -9/2024 %
-12/2024
Net sales 40,72 42,176 -3.4% 139,182 -1.0%
209,063
140,583
2
Operating -58.5% -38.8%
71,199
profit (EBITA) 4,284 10,330 24,356 39,816
EBITA, % 10.5% 24.5% 17.5 % 28.3 %
34.1%
Operating -72.6% -45.7%
63,169
profit (EBIT) 2,277 8,323 18,334 33,794
EBIT, % 5.6% 19.7% 13.2 % 24.0 %
30.2%
Return on 0.8% 5.6% 7.1 % 21.0 %
38.1%
equity, %
Return on 1.3% 6.9% 8.9 % 24.5 %
43.4%
investment, %
Interest 69.3% 4,168 69.3%
-bearing 7,058 4,168 7,058
4,316
liabilities[1]
Cash and cash 93,947 44,925 109.1% 93,947 109.1%
equivalents[1] 44,925
64,861
Net gearing, % -45.5% -27.1% -45.5 % -27.1%
-33.9%
[1]
Equity ratio, 84.5% 78.2% 84.5 % 78.2 %
81.6%
%
[1]
Earnings per 0.06 0.30 -81.4% 0.52 1.13 -54.2%
share (EPS),
2.26
EUR
Diluted 0.30 -81.4% -54.0%
earnings per 0.06 0.52 1.13
2.26
share, EUR
Personnel, on 916 848 8.0% 9.0%
834
average 899 824
[1] At the end of period
Juha Varelius, President and CEO
The change in customers' purchasing behavior caused by general economic
uncertainty has significantly slowed Qt Group's revenue growth during the past
year, and the same trend continued also in the third quarter. Due to weaker than
estimated third quarter and weaker sales pipeline for the rest of the year, we
lowered our full-year guidance for both net sales growth and profitability.
In the third quarter 2025, net sales were EUR 40.7 million, and at comparable
exchange rates, net sales decreased 0.2 percent. In the challenging market
environment, especially in the automotive industry, average deal size was
smaller than expected during July-September 2025, and it decreased in comparison
to the previous year. Sales to new customers and to existing customers' new
product development projects decreased in comparison to the previous year.
Distribution license revenue was on previous year's level.
Weaker than expected net sales growth contributed to weaker profitability in the
third quarter of 2025. Operating profit (EBITA) was EUR 4.3 million, and EBITA
-margin was 10.5 percent. Profitability decreased also due to one-off costs
related to the acquisition of IAR, which totaled approximately EUR 1.7 million
in July-September 2025.
We began the work to integrate IAR into Qt Group. IAR's transition towards SaaS
based licensing model is a strategically important initiative for us. We will
present the tentative SaaS transformation plan and its impact to Qt Group's
growth expectations in more detail during the first quarter of 2026. Together
with IAR, we now have a more comprehensive product offering for the
microcontroller (MCU) market, which is expected to grow at an annual rate of
approximately 10%[1]. In addition, IAR's strong position in safety-critical
systems, is a great starting point for sales of Axivion's quality assurance
solutions in particular. IAR's key product, the Embedded Workbench compiler, is
typically selected at the beginning of product development projects, which will
increase the growth opportunities of Qt's other products as potential customers
are reached early in the R&D process.
Our next priorities are to plan IAR's SaaS transformation and setting up joint
targets for long-term strategy, business synergies and growth opportunities. As
of now, we estimate that IAR's impact to Qt Group's net sales in the remainder
of the year 2025 will be approximately EUR 8-10 million. The one-off costs
related to the acquisition of IAR are estimated to be approximately EUR 6-7
million in 2025, of which approximately EUR 1.7 million will be booked to the
third quarter.
[1 ]Source: https://www.mordorintelligence.com/industry-reports/microcontroller
-mcu-market
Outlook for 2025 (issued on October 17, 2025):
We estimate that our full-year net sales for 2025 will increase by 3-10 percent
year-on-year at comparable exchange rates and that our operating profit margin
(EBITA %) will be 20-30 percent in 2025. The outlook includes the estimated
impact of the acquisition of IAR Systems Group on Qt Group's net sales and
operating profit for the remainder of the year.
News conference
Qt Group will organize a news conference on October 30, 2025, at 4:00 -5:00 pm
EET in Eliel studio, Sanomatalo, in Helsinki, Finland, and as a live webcast
at www.qt.io/investors (https://www.qt.io/investors?hsLang=en) CEO Juha
Varelius and CFO Jouni Lintunen will be presenting the results. Analysts and
investors can participate in the news conference in person or via conference
call: https://events.inderes.com/qt/q3-2025/dial-in
Further information:
President and CEO Juha Varelius, tel. +358 9 8861 8040
Distribution:
Nasdaq Helsinki
Key media
www.qt.io