Sitowise updated its financial targets to a more realistic level

Translation: Original published in Finnish on 3/17/2026 at 9:13 am EET.

On Tuesday, Sitowise announced its new mid-term strategic priorities and financial targets, as well as its new purpose and vision. These updates were expected, as the new management, which recently took office, aims to return the company to a path of profitable growth. In our estimation, the updated strategy is leading the company in the right direction, and the revised targets are more realistic than before. The release does not cause changes to our estimates or our view.

Financial targets brought closer to reality

Sitowise updated its financial targets to reflect the company's current performance. The new adjusted EBITA margin target is above 10%, whereas the previous long-term target was at least 12%. We consider this revision reasonable given that the company's profitability has decreased sharply in recent years, reaching only 4.7% in 2025. In our opinion, the previous target of 12% was unrealistic in the current market situation, and exceeding 10% will still require significant improvement from the current performance level.

The leverage target (net debt/adjusted EBITDA) was also raised to below 3.0x, up from below 2.5x. Given that the company's debt leverage was a very high 4.9x at the end of 2025, the new target is more in line with the current state of the company's balance sheet. The growth target now emphasizes organic growth ahead of market growth (previously, over 10% annual growth including acquisitions). This reinforces our view that Sitowise will focus on internal efficiency and organic development rather than large acquisitions in the coming years, as the current balance sheet structure would not allow for the latter. The targets have been set for the mid-term, 24–36 months.

Strategy relies on efficiency and selected growth segments

The company also updated its purpose and vision under the new management. Its purpose is "Engineering the foundations of Nordic resilience." The vision is to be the "#1 preferred technical consulting and digital partner."

In short, the company’s updated strategy is built on four focus areas: people, customer-driven growth, digitalization, and efficiency. While some themes remain familiar, the new strategy places an even greater emphasis on operational efficiency through automation and AI, as well as improving project profitability. The strategic goal of increasing recurring digital revenue remains unchanged, and we believe it is still the right direction, as it would improve the company’s resilience to economic cycles and its margin profile in the long term.

In 2026, Sitowise's most important priorities are the turnaround of the Swedish business and the improvement of the group's overall profitability, strengthening the company's competitiveness and market position, and leveraging the ongoing technological transformation.  The goal is to accelerate growth in strategic customer segments – industry, data centers, and energy – and to speed up the adoption of new technology in design and innovation.  

Earnings turnaround remains at the heart of the investment story

Although the targets have been adjusted to be more realistic, Sitowise’s investment story still relies heavily on the earnings turnaround we have forecast. The full-year revenue for 2025 was 189 MEUR, and the adjusted EBITA was 8.9 MEUR. For the company to achieve its new profitability target of over 10%, adjusted EBITA would need to rise to nearly 20 MEUR at current revenue levels. We currently estimate that the adjusted EBITA will rise to 11.8 in 2026, representing a margin of 6.1%. The road to achieving the new targets is therefore still long, but the recently secured new financing agreement gives the company the breathing room it needs to implement its strategy.