adesso SE
XMUN:ADN1
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A
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adesso SE
XMUN:ADN1
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DE |
adesso SE
adesso SE is a German IT services company that helps businesses build and run software. It designs custom applications, integrates new systems with old ones, and handles ongoing support for companies that need technology to work reliably in areas like insurance, banking, healthcare, utilities, and manufacturing. The company sells mainly consulting and project work, so it earns money by charging customers for experts who plan, build, test, and maintain software systems. Its clients are usually medium-sized and large enterprises, plus public-sector organizations, that need specialized technology teams for specific projects or long-term IT support. What makes adesso’s business model different is that it sits between pure consultants and pure software vendors. It is paid for hands-on delivery, but it also develops reusable software components and industry-specific know-how, especially in regulated markets where customers need tailored systems rather than off-the-shelf products.
adesso SE is a German IT services company that helps businesses build and run software. It designs custom applications, integrates new systems with old ones, and handles ongoing support for companies that need technology to work reliably in areas like insurance, banking, healthcare, utilities, and manufacturing.
The company sells mainly consulting and project work, so it earns money by charging customers for experts who plan, build, test, and maintain software systems. Its clients are usually medium-sized and large enterprises, plus public-sector organizations, that need specialized technology teams for specific projects or long-term IT support.
What makes adesso’s business model different is that it sits between pure consultants and pure software vendors. It is paid for hands-on delivery, but it also develops reusable software components and industry-specific know-how, especially in regulated markets where customers need tailored systems rather than off-the-shelf products.
Revenue Growth: adesso reported strong organic revenue growth of 13% for both Q3 and the first nine months, reaching EUR 1.14 billion after nine months and a record EUR 375 million in Q3.
Profitability: EBITDA rose 17% year-over-year to EUR 77.9 million after nine months, with the Q3 EBITDA at EUR 40.8 million. The EBITDA margin improved to 7.2%, but remains below the long-term target of 11-13%.
Guidance On Track: Management confirmed they are on track to reach the upper end of their full-year revenue and EBITDA guidance, expecting revenues between EUR 1.35–1.45 billion and EBITDA of EUR 105–125 million.
Sector Performance: Insurance, health, and utilities sectors posted strong growth, while automotive remains weak and public sector growth slowed due to delayed budget impacts.
Utilization & Margins: Margin improvement slowed in Q3 due to higher vacation and flat utilization, but management views this as a temporary issue, not a trend reversal.
International Operations: Foreign subsidiaries, especially Austria and Italy, showed strong growth and improved profitability, while a few regions remain loss-making but are improving.
Working Capital & Cash Flow: Net working capital increased faster than revenue, pressuring free cash flow, but management expects significant improvement in Q4.
