adesso SE publishes consolidated financial statements for 2024: sales growth to EUR 1.3 billion (+14%), disproportionately high increase in key earnings figures and strong free cash flow development

adesso SE has confirmed the preliminary figures for 2024 published in February with the presentation of its consolidated financial statements. The adesso Group was once again able to increase its sales significantly faster than the market with 14.2% growth (of which 14% organic) to EUR 1,297.0 million (previous year: EUR 1,135.9 million). EBITDA totalled EUR 98.3 million (previous year: EUR 80.0 million). The operating earnings margin recovered to 10.6% in the second half of 2024 (H1 2024: 4.4%; full year 2024: 7.6%) on the basis of a significant reduction in hiring momentum and the resulting gradual increase in capacity utilisation. Despite the weak result in the first half of the year, the operating result for 2024 as a whole increased by +23% year-on-year, outpacing sales growth. The slightly improved EBITDA margin of 7.6% (previous year: 7.0%) was burdened by continued high investments from the product business, which are expected to decrease in 2025. Consolidated net profit increased even more significantly to EUR 10.2 million (previous year: EUR 3.4 million). This results in earnings per share of EUR 1.25 after EUR 0.49 in the previous year.

The positive trend in the key earnings figures is accompanied by a significant improvement in key balance sheet items and is also reflected in a strong improvement of free cash flow. The main drivers in this context are the reduction in pre-financing requirements and improved receivables management as a result of the investments made in a new ERP system in previous periods. The return on net working capital (RONWC) improved to 19% (previous year: 13%). Despite the strong growth, net working capital was reduced by 8% to EUR 162.8 million (previous year: EUR 176.5 million). The factoring share increased only slightly from EUR 55 million in the previous year to EUR 57 million as at 31 December 2024. At the same time, net debt was reduced by EUR 1.8 million to EUR -46.6 million in the financial year despite additional expenses of EUR 8.2 million for the share buyback programme. Free cash flow after expenses for leasing improved significantly to EUR 45.1 million (previous year: EUR 14.2 million). This corresponds to EUR 6.92 per share.

Demand for adesso's IT services remains at a high level in the context of the digital transformation of companies. The two established core sectors ‘Insurance’ and ‘Banks/Financial Service Providers’, which are of high importance for adesso in terms of sales, with growth rates of 5% and 6% respectively. The ‘Public Administration’ sector is the strongest in terms of sales, as in the previous year. It also recorded growth of 12% compared to the previous year. The ‘Healthcare’ and ‘Utilities’ sectors recorded the strongest growth at 44% and 41% respectively. The ‘Public administration’ sector generated sales above EUR 200 million for the first time in 2024, catching up with ‘Cross industries’. The ‘Insurance’ and ‘Banks/financial service providers’ sectors each generated sales above EUR 150 million.

Due to the reduced hiring momentum in the 2024 financial year, capacity utilisation has recovered and is moving back towards the average value of previous years. Compared to the first quarter of 2024, capacity utilisation also improved in the first months of 2025. The average number of employees (full-time equivalents/FTEs) increased by 12% or 1,111 to 10,059 employees in 2024, which is disproportionally lower than the increase in revenue. The reduced hiring momentum is even more evident in the comparison of FTEs at the end of the year. adesso employs 10,320 people, 8% more than in the previous year. Personnel costs per FTE rose moderately by 2 % and in absolute terms by 15 % to EUR 888.9 million (previous year: EUR 773.2 million), almost in line with sales. Other operating expenses increased by only 8% to EUR 145.8 million (previous year: EUR 135.3 million), with an improving effect on margins.

The share buyback programme was successfully carried out in the period from 17 October 2024 to 10 January 2025 and reduced the outstanding number of shares with voting and earnings rights by 121,091 to 6,401,181. A total amount of around EUR 10.0 million (of which EUR 8.2 million by 31 December 2024) was spent on this, excluding incidental acquisition costs. For a further EUR 27 million (purchase price payments in the first quarter of 2025) adesso acquired the remaining 28% of the shares in adesso orange AG, Hamelin, and the remaining 30% of the shares in KIWI Consulting EDV-Beratung GmbH, Walldorf, and consequently holds 100% of the outstanding shares in the companies. adesso orange AG was renamed adesso business consulting AG in February 2025. This reduces the comparatively high share of minority interests (2024: EUR 2.1 million) in the consolidated net income. All transactions will have a positive effect on the earnings per share attributable to adesso shareholders in 2025.

The Executive Board sees its previous assumptions regarding the continued positive development of demand in the IT services market and the positive margin trend of the adesso Group confirmed in view of the higher capacity utilisation. In a fundamentally difficult macroeconomic environment and taking into account budget delays in the public sector due to the new elections as well as the significantly reduced hiring momentum, further sales growth to EUR 1.35 to 1.45 billion is expected for 2025. With capacity utilisation expected to be higher over the year as a whole and product business picking up again from the second half of 2025, EBITDA is expected to increase further to between EUR 105 million and EUR 125 million. Hence, the positive margin trend is expected to continue in 2025. Also boosted by additional working days in 2026 and 2027, the EBITDA margin should move back towards the target corridor of 11% to 13%.

For the 2024 financial year, the Executive Board and Supervisory Board will propose a dividend payment of EUR 0.75 (previous year: EUR 0.70) per dividend-bearing share at the Annual General Meeting of adesso SE scheduled for 3 June 2025, thereby further increasing shareholder value.

adesso Group

With more than 10,300 employees and annual sales of around EUR 1.3 billion in 2024, adesso Group is one of the largest German IT service providers with outstanding growth opportunities. At its own locations in Germany, other locations in Europe and the first locations in Asia, as well as at numerous local customers adesso offers consulting and software development services for optimising core business processes. adesso also offers ready-to-use software products for standard applications. The development of an own, industry-specific product portfolio opens up additional growth and earnings opportunities and is another key element of the adesso strategy. adesso was recognised as a Top Employer in 2025 and as the best employer in its size category in Germany across all industries in 2023 and 2020. After having already achieved first place among IT employers in 2016, 2018 and 2020, adesso was ranked first again in 2023.