Enento Q2'25 preview: The outlook is still subdued

Translation: Original published in Finnish on 07/11/2025 at 06:58 am EEST

Source: Inderes & Enento, 6 analysts (consensus)

Enento will report its Q2 results on Tuesday, July 15 at around noon EEST. The company’s operating environment has remained challenging during the quarter, and we have made small cuts to our Q2 forecasts. We expect revenue to have declined slightly again and earnings to also have weakened year-on-year. In the report, we are especially interested in comments on the development of the demand environment (incl. regulatory changes in Sweden), the IT infrastructure project, and the reform of the business model for Swedish SME customers.

We expect revenue to have reverted to a decline

We expect Enento's Q2 revenue to decrease by around 1% to 38.1 MEUR (was 38.9 MEUR). Our previous Q2 estimate expected the company to remain in moderate growth as in Q1, but with minor estimate cuts,  we now expect revenue to have again turned to a slight decline. The market environment in both main markets, Finland and Sweden, has remained challenging and there are no signs of recovery yet. In Finland, consumer confidence has remained weak, and in Sweden, the trend has even been slightly downward due to global political uncertainties (trade war). The quarter has one less working day than the comparison period, which also causes slight pressure on revenue build-up. We expect development across business areas to have remained consistent with previous quarters. In business Insight, we expect limited growth and Consumer Insight’s revenue to have decreased a bit further. On the other hand, we do not believe the regulatory changes that came into effect in Sweden at the beginning of the year have had any new significant negative effects, although the initial level of market activity is already very low.

We also expect earnings development to have been negative

We expect Enento's adjusted Q2 EBIT to decline to 10.5 MEUR (Q2'24: 10.9 MEUR). We slightly cut our earnings forecast in connection with the pre-comment (was 11.8 MEUR). Our estimate corresponds to an adjusted EBIT margin of 27.5% (Q2'24: 28.4%). We expect the decreasing revenue to have weighed on relative margins due to the company's high gross margins. In addition, the gross margin itself and profitability are facing pressure from, e.g., continuously increasing sourcing costs, as well as a deteriorated sales mix. We expect reported EBIT to be 6.7 MEUR (Q2'24: 7.8 MEUR), which weighs on earnings in addition to continuous PPA amortizations and one-off IT infrastructure project costs, which we expect to remain elevated (-1.8 MEUR). The project was largely scheduled to be completed in Q2, and as such, one-off expenses should decline clearly after Q2.

The outlook offers little cause for major celebration

Enento guides that its current year revenue will be 150-156 MEUR and adjusted EBITDA around 50-55 MEUR. Our revenue forecast is 152.3 MEUR (+1.2%) and adjusted EBITDA is 52.1 MEUR. Our forecasts are thus slightly below the mid-point of the guidance range. Signs of demand recovery have not yet materialized, and the trade war-induced economic uncertainty has, in our view, somewhat further delayed this. The general interest in the earnings release is focused on the development of the demand environment. Latest updates on the development of the Swedish market are also interesting due to the regulatory changes that entered into force earlier this year. Further, comments regarding the IT infrastructure project and the business model reform for Swedish SME customers are of interest.