Tietoevry Corporation FINANCIAL STATEMENT RELEASE
12 February 2026 9:00 a.m. (EET)
· Growth of -2% impacted by continued market weakness and known headwinds in
Tieto Banktech and Caretech
· Adjusted operating margin (EBITA) up 3.8 pp. to 16.2%, driven by cost
optimization programme
· Cost optimization programme target uplifted to EUR 130 million - programme
execution ahead of schedule
· Execution of updated strategy well underway - acquisitions in Spain support
European expansion, divestment of Bekk Consulting drives simplification
· Dividend of EUR 0.88 (1.50) per share proposed - at the upper end of the
dividend payout range
· Share buyback programme of EUR 150 million launched, connected to the
divestment of Bekk Consulting - aligned with the capital allocation principles
In connection with its brand renewal, Tietoevry adopted the new brand name Tieto
and new business segment names.
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.
10-12/2025 10-12/2024 1-12/2025 1-12/2024
Revenue, EUR million 464.2 471.8 1852.3 1879.5
Organic growth1), % -2 -5 -2 -1
Acquisitions and 0 0 0 2
divestments, %
Foreign exchange 1 0 0 -1
rates, %
Total growth, % -2 -6 -1 0
Organic growth adjusted -2 -5 -1 -2
for working days4), %
Operating profit (EBIT), 58.8 33.9 75.2 142.3
EUR million
Operating margin (EBIT), 12.7 7.2 4.1 7.6
%
Adjusted2) operating 75.1 58.4 256.5 225.4
profit (EBITA3)), EUR
million
Adjusted2) operating 16.2 12.4 13.8 12.0
margin (EBITA3)), %
Cash flow from operating 102.5 127.6 295.9 325.7
activities, EUR million5)
Interest-bearing net 555.5 871.8 555.5 871.8
debt, EUR million5)
Full-year outlook for 2026
Tieto expects its organic1) growth to be in the range of -2% to 0% (revenue in
2025: EUR 1 852.3 million). The company estimates its full-year adjusted
operating margin2) (adjusted EBITA3)) to be 14.8-15.8% (13.8% in 2025).
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
Executing on our strategic priorities
"We closed the year with strong fourth-quarter profitability across our
businesses, demonstrating the impact of disciplined execution in a challenging
market. Our adjusted operating margin improved by close to 4 percentage points
to 16.2%. Organic growth was -2%, reflecting continued market weakness in our
consulting business and known headwinds in our software businesses - the
expiration of a large contract in Tieto Banktech and the decline of the legacy
product business in Tieto Caretech had a combined negative impact of 2
percentage points on Group growth.
2025 - a year of change and execution
2025 was a pivotal year for the company. We went through significant changes in
our business portfolio, renewed the management of the company and launched a
rejuvenated strategy. Based on our strong foundation and focus on customers and
execution, we are set to pursue the leading position in the attractive European
software and technology consulting market.
We have continued the execution of our four strategic priorities:
· customer first
· simplified core
· selective expansion
· competitive cost base
Initiatives aimed at strengthening customer-centricity - including sales
improvement and AI programmes - advanced well. At the turn of the year, we
reached a new milestone in our international expansion plans. In January 2026,
we announced the acquisition of OpenSpring and GrupoOnetec in Spain to gain a
foothold in Iberia where we see strong growth opportunities. We have also
continued implementing our simplification agenda through the divestment of Bekk
Consulting, which operated as an independent entity within Tieto Tech
Consulting. Aligned with the company's profound change, we introduced a new
brand in November, renaming the company to Tieto in recognition of our heritage
as well as our simplified core and our geographically expanding footprint.
Cost optimization measures progressed faster than planned, contributing to a
clear improvement in full‑year profitability. With the programme ahead of
schedule, we have increased our ambition for run-rate savings to EUR 130 million
by the end of 2026. Improved profitability gives us the confidence to propose a
dividend of EUR 0.88 per share, which is at the upper end of the payout range of
60-80% of net profit, as defined in our new capital allocation principles for
2026-2028. Following the divestment of Bekk Consulting , we launched a share
buyback programme, representing around 7% of the outstanding shares, for the
benefit of investors.
Profitability to strengthen during the year of transition and execution
Our growth focus and the drive for a lean cost structure are also reflected in
the company's new financial targets and capital allocation principles, which
will enable growth while delivering attractive shareholder returns. As discussed
at our Capital Markets Day in November, 2026 will be a year of transition in
terms of growth. Growth headwinds in Tieto Banktech and Tieto Caretech, to a
large extent related to phasing out legacy contracts, will have a negative
impact of approximately 3 percentage points on overall Group growth in 2026. Our
strong order backlog is expected to start yielding growth towards the end of the
year. This, coupled with our lean cost base, will move profitability towards our
target levels.
At the heart of our company are our people, around 14 000 experts who play the
key role in delivering on customer expectations. Diverse customer projects
provide unique opportunities to learn and deliver impact, and we enable our
people to pursue both professional and personal growth. Our efforts have been
recognized - during 2025, Tieto was ranked highly as a top workplace, for
example, in India, China and Central Europe. As we are active in a sector
enabling the green transition, we can also make a positive contribution to the
environment. In 2025, we raised the bar by introducing more demanding targets
that cover our entire value chain, reflecting our commitment to long-term GHG
reductions. The targets, validated by the Science Based Targets initiative,
reinforce our pledge to achieve net-zero emissions by 2040 in line with the
1.5°C pathway. Tieto also received an A rating from the CDP in the Climate
category in 2025.
We have set a clear direction, launched new strategic priorities and
strengthened our ability to execute. I am confident that we are well on our way
to becoming a company that attracts the best talent, has a strong customer focus
and continues to deliver good financial performance and attractive shareholder
returns."
Financial performance by segment
Revenue, Revenue, Growth, Organic Adjusted
Adjusted Adjusted Adjusted
EUR million EUR % growth, operating
operating operating operating
million % profit,
profit, margin, % margin, %
EUR million
EUR
million
10-12/2025 10-12/202 10-12/20 10-12/20 10-12/2025
10-12/2024
2
4 25 4
Tieto Tech 208.3 -6 -6
23.3 13.6 11.2
Consulting 195.7 26.7
Tieto 145.5 -3 -3
21.2 18.1 14.6
Banktech 141.9 25.7
Tieto 60.8 3 1
19.5 28.9 32.1
Caretech 62.6 18.1
Tieto 64.9 8 6
7.8 17.0 12.1
Indtech 70.1 11.9
Eliminations -7.7 — —
-13.5 — —
and -6.1 -7.2
non
-allocated
costs
Group total 471.8 -2 -2
58.4 16.2 12.4
464.2 75.1
For further information, please contact:
Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen
(at) tieto.com
Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288,
tommi.jarvenpaa (at) tieto.com
A webcast for analysts and media will be held on 12 February at 10.00 a.m. EET
(9.00 a.m. CET, 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://tieto.events.inderes.com/q4-2025) can be followed on the
company's website (http://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 webcast by registering on this
link (https://events.inderes.com/tieto/q4-2025/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.
Tieto publishes its financial information in English and Finnish.
Tietoevry Corporation
DISTRIBUTION
Nasdaq Helsinki
Nasdaq Stockholm
Oslo Børs
Principal Media
Tieto 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
Tieto Caretech, Tieto Banktech and Tieto Indtech as well as Tieto Tech
Consulting business. Our around 14 000 talented vertical software, design, cloud
and AI experts are dedicated to empowering our customers to succeed and innovate
with latest technology.
Tieto'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