NNIT improves profitability in Q2 2025 despite declining revenue and continued market uncertainty

In the second quarter of 2025, NNIT delivered stronger profitability than in the first quarter, even as revenue declined year‑on‑year, driven by the impact of cost‑reduction initiatives, improved project execution, and a sharper focus on repeatable solutions.

Market conditions across regions, especially in Europe, remained challenging with life sciences customers still cautious in committing to new projects. Towards the end of the quarter, signs of increasing activity and notable contract wins began to emerge.

“We are pleased to see a clear improvement in profitability in the second quarter compared with the first. This has been achieved through disciplined capacity planning, operational efficiencies, and a more targeted portfolio approach. While revenue was slightly lower year‑on‑year, we are encouraged by increasing activity toward the end of the quarter, important contract wins, and a strong backlog that position us well for growth and higher profitability in the second half of the year,” says Pär Fors, CEO, NNIT.

Key highlights

• Group operating profit before special items was DKK 22.9 million, equal to a margin of 5.0%, an improvement from the previous quarter (Q1 2025: 3.9%) due to efficiency gains and cost reductions
• Revenue in Q2 2025 amounted to DKK 462.2 million, a decline of 2.5% year-on-year (organic decline: -1.7%)
• Significant new contracts won across regions, including a long-term DevOps partnership with energy infrastructure company, Energinet, in Denmark and new life sciences engagements in Europe and the US
• Continued strong focus on optimizing overhead costs while streamlining the portfolio towards fewer, more repeatable solutions

Regional performance highlights

• Region Denmark: Modest revenue growth driven by SCALES; several significant contract wins, including Energinet and Sund & Bælt. Profitability influenced by corporate cost reallocations, with efficiency initiatives in place to strengthen margins going forward
• Region US: Solid profitability supported by Smart Supply Chain and repeatable solutions; slight revenue growth
• Region Europe: Margin improvement from cost base adjustments and higher utilization, however, revenue decline due to delayed life sciences projects
• Region Asia: Continued turnaround with new customer wins and expanded engagements; profitability affected by price pressure

Outlook for 2025

NNIT confirms its full-year 2025 outlook announced in May 2025, expecting to deliver results at the lower end of the guided ranges for organic revenue growth (0-5%) and operating profit margin before special items (7-9%). Special items are expected to be in line with last year at up to DKK 69 million.

Performance is expected to improve in the second half of the year, supported by backlog conversion, further efficiency gains, and the full impact of cost-reduction measures implemented in late 2024 and early 2025.

Please refer to nnit.com - Investors for our full company announcement regarding the financial results for Q2 2025.