Digital Workforce's Q1 was weaker than expected in terms of revenue and profitability. The company responded by reorganizing and implementing cost-saving measures. The company has secured some good orders at the start of the year. The company also commented that the sales pipeline remains good and its quality has improved. We lowered our forecasts but expect the company to grow well ahead of the IT services market in the coming years and to scale this growth to profitability.
Modulight's Q1 continued on the positive path outlined by the financial statement. Revenue exceeded our expectations and the loss was smaller than forecasted due to lower expenses.
Tietoevry will publish its Q1 report on Tuesday at 9:00 am EEST. We expect Q1 revenue to be lower for the new Tietoevry structure. In addition, we expect the result to be at the level of the comparison period due to several efficiency measures.
The start of the year was slightly weaker than the consensus estimates in terms of delivery volumes and earnings, but Kempower’s cost structure developed favorably.
We believe that the new metal extraction method has taken center stage in the investment story, and its economic potential seems significant. However, the road to a commercial product is still long.
Enento's growth and operating profitability in Q1 slightly exceeded our estimates, although large non-recurring items depressed reported figures. Regulatory changes in Sweden have not caused additional headwinds, and the outlook has stabilized somewhat. A major recovery is not yet expected this year due to the high economic uncertainty, but the market bottom may be behind as the company turns to growth after a two-year downward trend.
Alma Media reported stronger growth figures than expected for Q1, and profitability was also better than we anticipated. Based on this, we made small positive changes to our forecasts, but our earnings forecasts, which expect an upward trend in earnings development in H2'25 and the coming years, remain broadly unchanged.
Incap's start to the year was slower than expected, which already raises questions about the achievement of guidance given the uncertainty around the prevailing operating environment, although the company was confident about H2.
Inderes’ Q1 left a small positive mark driven by the Finnish operations. The Swedish business, however, still faces headwinds and the company struggles to take more meaningful positions in markets. However, the company is now reacting and we believe the story remains broadly unchanged: the Finnish business forms a solid foundation, but the upside potential lies in international growth, which is hard to predict.
We reiterate our Buy recommendation and EUR 18.00 target price for Raute. In 2024, Raute achieved a sharp turnaround in earnings after several difficult years thanks to growth and efficiency measures. We believe that the turnaround is on a solid footing, even though the support for the result from growth may fade this year and uncertainties related to the global economy and trade policy will dampen the company's partly investment-driven demand. Based on the low valuation, investors are quite skeptical about the company's ability to even roughly maintain the earnings level achieved as the implementation of the strategy progresses. Thus, we still see a clear pricing error in the stock.
Fiskars' Q1 result was good, as the company grew organically for the first time in a long time and earnings improved slightly. The company reiterated its guidance for an improvement in full-year adjusted EBIT, but we believe that a possible weakening of demand in the US is a clear risk to the realization of the guidance.
Telia's Q1 report was overall positive and exceeded our expectations. However, Q1 looks like the strongest quarter of the year in terms of earnings growth. We expect the company to grow in line with guidance, which is a good level by historical standards.
In Finland, Talenom's development was strong, but the earnings beat was due to an exceptional change in the revenue recognition method after the separation of the software business. Development in Sweden and Spain remained subdued, and we also lowered our forecasts for these regions.
Earlier this week, GreenMobility announced its Q1 2025 trading statement. The company maintained its 2025 guidance after growing its revenue by 36% and EBITDA by 84% in Q1 2025. GreenMobility also provided an update on new technology investments, including a next-generation platform. We have updated our investment case one-pager with the recent news and financials.
In our view, the overall picture of Scanfil's Q1 report published yesterday was rather neutral, and we did not make any changes to our forecasts following the report. In our view, the stock is reasonably valued (2025e: P/E 13x, EV/EBIT 10x), but the expected return no longer exceeds the sustainable required return on a 12-month horizon due to elevated macro risks. Hence, we reiterate our target price of EUR 9.00 on Scanfil and lower our recommendation to Reduce (previously Accumulate) as the stock's upside narrows.
Kreate's revenue decreased in Q1 in line with our expectations, with earnings down year-on-year. In our view, the first half of the year will be weak, and growth will be weighted towards the end of the year, reflecting the typical seasonality of the industry.
Inderes posted a broadly in line Q1 report with sales slightly ahead (likely thanks to large AGMs in March) of SEBe. However, in rounded numbers, EBITA came in line with our estimate. While the March performance was better than expected our negative notes go to Sweden, where the company has seen churn in research contracts. Also, while the guidance remains unchanged, the company's market view is more cautious. We think a neutral reaction is warranted based on first read.
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