Sitowise Group Oyj

Earnings Release • Aug 13, 2025

Sitowise's Half-year Financial Report January-June 2025: Good performance in the Finnish operations continued

Sitowise's Half-year Financial Report January-June 2025: Good performance in the Finnish operations continued

Sitowise Group Plc Half-year Report, 1 January - 30 June 2025, 13 August 2025 at
8:30 am EEST

This release is a summary of Sitowise Group Plc's Half-Year Report January-June
2025. The complete report is attached to this release as a PDF file, and also
available on the company's website at www.sitowise.com/investors/reports-and
-presentations

April-June in brief

· Net sales decreased by 2.1% to EUR 49.8 (50.9) million.
· Organic net sales growth was negative at -1.2% (-12.8%).
· Adjusted EBITA totaled EUR 2.5 (2.6) million, or 5.1% (5.0%) of net sales.
· Operating profit was EUR 1.0 (1.1) million, or 2.1% (2.1%) of net sales.
· Cash flow from operating activities before financial items and taxes
increased to 7.2 (5.9) million euros.
· Utilization rate improved to 74.2% (73.6%).

January-June in brief

· Net sales decreased by 4.3% to EUR 97.9 (102.4) million.
· Organic net sales growth was negative at -3.2% (-10.3%).
· Adjusted EBITA was EUR 5.0 (5.9) million, or 5.1% (5.8%) of net sales.
· Operating profit decreased to EUR 0.8 (3.0) million, or 0.8% (3.0%) of net
sales.
· Cash flow from operating activities before financial items and taxes totaled
7.7 (10.9) million euros.
· Utilization rate was flat at 72.9%.
· The order book decreased by 8.8% to 148 (162) million euros.
· Leverage (net debt / adjusted EBITDA) was 5.9x (4.3x).
· In the client survey conducted at the beginning of the year, the willingness
to recommend remained at a good level and the NPS (Net Promoter Score) was 35
(31).

The figures in the half-year report are unaudited. Comparative figures for the
corresponding period of the previous year are in brackets. The figures disclosed
in the report are rounded so the sum of individual figures can deviate from the
reported sum. This report has been published in Finnish and English. If there
are any differences between the English translation and the original Finnish
version, the Finnish report shall prevail.

Key figures

EUR million 4­­­-6/ 4­­­-6/ Change, 1­­­-6/ 1­­­-6/ Change, 1­­­-12/
% 2025 2024 % 2024
2025 2024
FINANCIAL
Net sales 49.8 50.9 -2.1% 97.9 102.4 -4.3% 192.9
Adjusted organic -1.2%  -12.8% -3.2%  -10.3%
growth, %

EBITA, adjusted 2.5 2.6 -1.1% 5.0 5.9 -16.2% 9.6
% of net sales 5.1% 5.0% 5.1% 5.8% 5.0%
EBITA
EBITA 1 2.1 2.2 -4.7% 2.8 5.2 45.8% 7.4
Operating profit 1.0 1.1 -6.0% 0.8 3.0 -75.0% 2.5
% of net sales 2.1% 2.1% 0.8% 3.0% 1.3%
EBIT
Result for the -0.4 -0.2 -153.3% -1.8 0.4 -582.0% -2.7
period
Cash flow from 7.2 5.9 22.7% 7.7 10.9 -29.3% 21.5
operating
activities
before financial
items
and taxes
Net debt 53.3 56.1 -4.9% 52.6
Net debt / 5.9x 4.3x 5.0x
EBITDA, adjusted
Equity ratio, % 43.1% 43.6% 43.2%
Earnings per -0.01 0.00 -262.4% -0.05 0.01 -487.8% -0.08
share (EPS), EUR
OPERATIONAL
Number of full 1,758 1,906 -7.8% 1,749 1,895 -7.7% 1 854
-time equivalent
employees
Utilization rate 74.2% 73.6% 72.9% 72.9% 72.6%
Number of 60 60 122 123 251
working days
Order book at 148 162 -8.8% 148 162 -8.8% 151
the end of
period

CEO Heikki Haasmaa: April-June adjusted EBITA margin improved year-on-year,
strong growth in both Infra and Digi

The positive underlying performance in Sitowise's business in Finland continued
during the second quarter. The Infra and Digital Solutions business areas grew
organically by 8 percent year-on-year and maintained good profitability. In the
Digital Solutions business, the development was particularly supported by the
continued fast growth of the product business and a slight improvement in the
market environment. In the Buildings business, the market environment remained
challenging, but the adjustment measures we implemented during the review period
were reflected in clearly improved performance in structural and building
services engineering. The adjusted EBITA of the Buildings business was positive
also in the second quarter, which I am pleased with.

In Sweden, it was too early to see visible improvements in the second quarter,
but we're working hard to show some results this year. Thanks to active sales
efforts and the adjustment measures taken after the comparison period, the
profitability of structural engineering in Sweden improved significantly, but
weak demand in building services engineering posed challenges. We are
strengthening our service offering in infrastructure, project management, and
sustainability in Sweden, but these segments are expected to contribute more
clearly to growth only in 2026. Overall, net sales in Sweden declined by 17
percent year-on-year, and the Swedish business remained loss-making.

The Group's revenue decreased by 2.1 percent to EUR 49.8 million in April-June.
The adjusted EBITA margin improved slightly from the comparison period and was
5.1 percent. Profitability was affected negatively by the calendar effect (one
less working day) and positively by an improved utilization rate year-on-year.

Considering the challenges in the market environment, the second quarter was
good overall, and I want to thank all Sitowise employees for that. After a
period of strong focus on costs, and after seeing some early signs of demand
recovery, we'll now put more emphasis on order intake to strengthen the order
book and make sure we capture the growth when it comes.

Improving profitability remains our top priority, and we seek growth especially
in sustainability services, energy, industry, safety, and the product business.
To ensure efficiency, we will also continue temporary layoffs in the Buildings
business as needed.

Outlook and guidance

Outlook for the year 2025

The long-term growth in the demand for design, consulting, and digital services
to create sustainable societies is supported by megatrends such as urbanization,
renovation backlog, sustainability, digitalization, and security.

We expect the technical consulting market environment to remain mixed throughout
2025. Good demand for services related to green transition, security, and
digitalization will support business performance especially in the Infra and
Digital Solutions business areas. In the Buildings business area, there have
been signs of moderate recovery in the construction market, and we believe that
the market bottom is behind us. However, we expect the construction market
recovery to be slow and materialize gradually towards the end of 2025. The
recovery of new residential construction seems likely to start only in 2026. In
the Sweden business area, Sitowise has taken decisive improvement measures and
expects these to gradually enhance performance. Achieving a profitability
turnaround in Sweden primarily requires increasing net sales. There is
uncertainty related to the timing of the Swedish construction market recovery,
but it is generally anticipated to take place only in the latter half of 2025 or
even only in 2026. However, there are signs of improvement in all areas in
Sweden.

At the end of June, order books were at a good level in the Infra and Digital
Solutions businesses. In the Buildings and Sweden business areas, order books
and workloads were at low levels.

In addition to the market development, cost inflation (e.g., relating to salary
increases), potential currency fluctuations (EUR/SEK) and Sitowise's financing
expenses are expected to impact the company's financial performance in 2025. In
2025, the number of working days in Finland is one less compared to 2024 (-1 in
Q1, -1 in Q2, +/- 0 in Q3 and +1 in Q4). In Sweden, the number of working days
remains the same in 2025 as it was in 2024. In total, there will be 251 working
days in Finland and 247.5 in Sweden.

Market outlook and current profitability

          Share of net    Market           Current profitability
             sales        outlook

Infra 39% Stable Above target
Buildings 28% Weak Clearly below target
(improving)
Digital 19% Stable Below target
Solutions (improving)
Sweden 14% Weak Negative
(improving)
Period: Q2 2025 Next 12 Q2 2025
months
Definitions: % of Strong / Adj. EBITA-%: Above: >12%;
consolidated Stable / In line: 10-12%; Below: 5-10%;
net sales Weak Clearly below: 0-5%; Negative <0%

No guidance issued for 2025

Due to the unpredictable timing of construction market recoveries both in
Finland and Sweden there is significant uncertainty related to Sitowise's net
sales development in 2025. Therefore, Sitowise has decided not to give net sales
and profitability guidance for 2025.

Espoo, 13 August 2025

Sitowise Group Plc

Board of Directors

Additional information

Heikki Haasmaa, CEO, heikki.haasmaa@sitowise.com, tel. +358 50 304 7765

Hanna Masala, CFO, hanna.masala@sitowise.com, tel. +358 40 558 1323

Mari Reponen, Head of IR, mari.reponen@sitowise.com, tel. +358 40 702 5869

Financial calendar 2025

The planned publication dates for Sitowise Group Plc's financial reports in 2025
are as follows:

· Interim Report for January-September 2025: 6 November 2025

Webcast for analysts. media and investors

Sitowise's Q2 2025 earnings webcast will be held today, 13 August 2025 at 12 pm
EET. The webcast can be accessed either live or as a replay available
at Sitowise Q2 2025 Result Webcast (https://rajucast.tv/en/sitowise/sitowise-q2
-2025-result-webcast/)

Distribution:

Nasdaq Helsinki Ltd

Key media

www.sitowise.com

Sitowise in brief

Sitowise is a Nordic expert in the built environment and forestry with a strong
focus on digitality. We provide design and consulting know-how to enable more
sustainable environment and smarter urban development as well as smooth
transportation. Sitowise offers services related to real estate and buildings,
infrastructure, and digital solutions both in Finland and in Sweden. Global
megatrends drive huge changes that require a re-evaluation of the smartness in
the built environment - therefore we have set our vision to be Redefining
Smartness in Cities. The Group's net sales were EUR 193 million in 2024 and the
company employs approximately 2,000 experts. Sitowise Group Plc is listed on
Nasdaq Helsinki under the trading symbol SITOWS.