Digia Q4'25 preview: The new strategy period and outlook in focus

Translation: Original published in Finnish on 02/04/2026 at 08:43 am EET

Digia publishes its financial statements release on Thursday, at 3:00 pm EET. We expect revenue growth to have remained strong in late 2025, particularly supported by the Savangard acquisition. Organic growth has also been good, particularly in the current, still challenging market situation. We estimate that profitability strengthened significantly year-on-year, driven by efficiency measures and improved billing rates, but for the full year, the company has been close to the lower end of its guidance. Naturally, the focus in the report will be on the 2026 outlook, the priorities for the new strategy period, and the dividend proposal, which we expect to be higher than last year.

Savangard acquisition boosts Q4 revenue growth

We slightly raised our Q4 revenue estimates (0.5 MEUR) and our earnings estimates, driven by better billing rates, as the company's Q4 appears to have been better than expected, with no profit warning issued yet. We expect Digia's Q4 revenue to have grown by 9% to 59.5 MEUR. The Savangard acquisition is a particular driver of growth. Growth is also supported by one more working day than in the comparison period, with an impact of just under 2%. We expect organic growth to improve to 2%, which is a relatively clear outperformance compared to the general development of the IT services sector in Q4.

Efficiency measures and billing rates support better profitability

We expect Digia's adjusted EBITA to increase to 8.6 MEUR in Q4, which would correspond to a strong margin of 14.4% (Q4'24: 5.9 MEUR and 10.7%). Profitability in late 2025 is supported by the fully realized savings from the change negotiations, Digia expects to bring annual benefits of around 2.4 MEUR. Better billing rates, the progress of the Savangard acquisition integration, and the seasonal strength of Q4 will support the earnings level. We estimate reported EPS to have grown to EUR 0.22 and, adjusted for PPA depreciation, to have been EUR 0.24 per share (Q4'24 EUR 0.15 and EUR 0.17), and to be EUR 0.49 and EUR 0.66 for the full year 2025. Regarding the dividend, we forecast Digia's Board of Directors to propose a dividend of EUR 0.19 per share, which would mean a one-cent increase from the previous year's EUR 0.18. This would correspond to a payout ratio of 39%, which is in line with the company's dividend target of at least 30%. In addition to a rising dividend, strong cash flow, and moderate indebtedness enable continuous investments in acquisitions, which likely remain a key part of the company's growth strategy.

New strategy period and outlook in focus for investors

The key aspect of the report is outlook and guidance for 2026. We expect Digia's revenue to grow by about 6% to 228 MEUR this year and EBIT to rise to 24.2 MEUR. The market situation is expected to gradually normalize, and Digia's position as an "Integration Powerhouse" and strong foothold in the defense and financial sectors provide a good starting point for growth.

Digia's strategy period 2023-2025 is coming to an end, and the company is expected to publish new targets for 2026-2028, which we naturally monitor. We believe the new strategy is a natural continuation of the previous one. The role of AI and automation is expected to be emphasized in all service areas, and the company may set new targets to grow its scalable product business. The targets should reflect growth and improved profitability. It would be good if the company separated its organic and inorganic growth targets.

Valuation picture is attractive

Digia has strengthened its profile as an earnings growth company and has risen to become one of the sector's top performers, which supports the share valuation. Based on the valuation methods we use, the stock is attractively (2026e P/E 9x and EV/EBIT 7x) or even very attractively priced from almost all perspectives. When examining our cash flow calculation and relative valuation level, the stock is very attractively priced. In addition, the company's risk profile is among the lowest in the sector. In summary, we see the fair value of the share in the range of EUR 7.2-8.8 per share.