Tieto's Interim Report 4/2025: Strong profitability – execution of new strategic priorities progressing

Tietoevry Corporation                   FINANCIAL STATEMENT RELEASE                12 February 2026   9:00 a.m. (EET) 

• Growth of -2% impacted by continued market weakness and known headwinds in Tieto Banktech and Caretech
• Adjusted operating margin (EBITA) up 3.8 pp. to 16.2%, driven by cost optimization programme
• Cost optimization programme target uplifted to EUR 130 million – programme execution ahead of schedule
• Execution of updated strategy well underway – acquisitions in Spain support European expansion, divestment of Bekk Consulting drives simplification
• Dividend of EUR 0.88 (1.50) per share proposed – at the upper end of the dividend payout range
• Share buyback programme of EUR 150 million launched, connected to the divestment of Bekk Consulting – aligned with the capital allocation principles

In connection with its brand renewal, Tietoevry adopted the new brand name Tieto and new business segment names.

 

The divestment of Tietoevry Tech Services was completed on 2 September. The business has been presented as a discontinued operation as from the first quarter of 2025. The financial information presented in this report concerns continuing operations, unless otherwise stated. The comparative information has been restated accordingly.

 

The full interim report with tables is available at the end of this release. 
 

	10–12/2025	10–12/2024	1–12/2025	1–12/2024
Revenue, EUR million	464.2	471.8	1 852.3	1 879.5
Organic growth1), %	-2	-5	-2	-1
Acquisitions and divestments, %	0	0	0	2
Foreign exchange rates, %	1	0	0	-1
Total growth, %	-2	-6	-1	0
Organic growth adjusted for working days4), %	-2	-5	-1	-2
Operating profit (EBIT), EUR million	58.8	33.9	75.2	142.3
Operating margin (EBIT), %	12.7	7.2	4.1	7.6
Adjusted2) operating profit (EBITA3)), EUR million	75.1	58.4	256.5	225.4
Adjusted2) operating margin (EBITA3)), %	16.2	12.4	13.8	12.0
Cash flow from operating activities, EUR million5)	102.5	127.6	295.9	325.7
Interest-bearing net debt, EUR million5)	555.5	871.8	555.5	871.8

 

Full-year outlook for 2026

Tieto expects its organic1) growth to be in the range of -2% to 0% (revenue in 2025: EUR 1 852.3 million). The company estimates its full-year adjusted operating margin2) (adjusted EBITA3)) to be 14.8–15.8% (13.8% in 2025).
 

1) Adjusted for currency effects, acquisitions and divestments
2) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability
3) Profit before interests, taxes, amortization of acquisition-related intangible assets, goodwill and other intangible asset impairment
4) Company estimate
5) Cash flows combine the continuing and the discontinued operations; balance sheet comparative information not restated.

  

CEO comment by Endre Rangnes

Executing on our strategic priorities

 

"We closed the year with strong fourth-quarter profitability across our businesses, demonstrating the impact of disciplined execution in a challenging market. Our adjusted operating margin improved by close to 4 percentage points to 16.2%. Organic growth was -2%, reflecting continued market weakness in our consulting business and known headwinds in our software businesses – the expiration of a large contract in Tieto Banktech and the decline of the legacy product business in Tieto Caretech had a combined negative impact of 2 percentage points on Group growth.

 

2025 – a year of change and execution

 

2025 was a pivotal year for the company. We went through significant changes in our business portfolio, renewed the management of the company and launched a rejuvenated strategy. Based on our strong foundation and focus on customers and execution, we are set to pursue the leading position in the attractive European software and technology consulting market.

 

We have continued the execution of our four strategic priorities:

• customer first
• simplified core
• selective expansion
• competitive cost base

 

Initiatives aimed at strengthening customer-centricity – including sales improvement and AI programmes – advanced well. At the turn of the year, we reached a new milestone in our international expansion plans. In January 2026, we announced the acquisition of OpenSpring and GrupoOnetec in Spain to gain a foothold in Iberia where we see strong growth opportunities. We have also continued implementing our simplification agenda through the divestment of Bekk Consulting, which operated as an independent entity within Tieto Tech Consulting. Aligned with the company’s profound change, we introduced a new brand in November, renaming the company to Tieto in recognition of our heritage as well as our simplified core and our geographically expanding footprint.

 

Cost optimization measures progressed faster than planned, contributing to a clear improvement in full‑year profitability. With the programme ahead of schedule, we have increased our ambition for run-rate savings to EUR 130 million by the end of 2026. Improved profitability gives us the confidence to propose a dividend of EUR 0.88 per share, which is at the upper end of the payout range of 60-80% of net profit, as defined in our new capital allocation principles for 2026–2028. Following the divestment of Bekk Consulting , we launched a share buyback programme, representing around 7% of the outstanding shares, for the benefit of investors.

 

Profitability to strengthen during the year of transition and execution 

 

Our growth focus and the drive for a lean cost structure are also reflected in the company’s new financial targets and capital allocation principles, which will enable growth while delivering attractive shareholder returns. As discussed at our Capital Markets Day in November, 2026 will be a year of transition in terms of growth. Growth headwinds in Tieto Banktech and Tieto Caretech, to a large extent related to phasing out legacy contracts, will have a negative impact of approximately 3 percentage points on overall Group growth in 2026. Our strong order backlog is expected to start yielding growth towards the end of the year. This, coupled with our lean cost base, will move profitability towards our target levels.

 

At the heart of our company are our people, around 14 000 experts who play the key role in delivering on customer expectations. Diverse customer projects provide unique opportunities to learn and deliver impact, and we enable our people to pursue both professional and personal growth. Our efforts have been recognized – during 2025, Tieto was ranked highly as a top workplace, for example, in India, China and Central Europe. As we are active in a sector enabling the green transition, we can also make a positive contribution to the environment. In 2025, we raised the bar by introducing more demanding targets that cover our entire value chain, reflecting our commitment to long-term GHG reductions. The targets, validated by the Science Based Targets initiative, reinforce our pledge to achieve net-zero emissions by 2040 in line with the 1.5°C pathway. Tieto also received an A rating from the CDP in the Climate category in 2025.

 

We have set a clear direction, launched new strategic priorities and strengthened our ability to execute. I am confident that we are well on our way to becoming a company that attracts the best talent, has a strong customer focus and continues to deliver good financial performance and attractive shareholder returns." 

 

Financial performance by segment

	Revenue, EUR million	Revenue, EUR million	Growth, %	Organic growth, %	Adjusted operating profit, EUR million	Adjusted operating profit, EUR million	Adjusted operating margin, %	Adjusted operating margin, %
	10–12/2025	10–12/2024			10–12/2025	10–12/2024	10–12/2025	10–12/2024
Tieto Tech Consulting	195.7	208.3	-6	-6	26.7	23.3	13.6	11.2
Tieto Banktech	141.9	145.5	-3	-3	25.7	21.2	18.1	14.6
Tieto Caretech	62.6	60.8	3	1	18.1	19.5	28.9	32.1
Tieto Indtech	70.1	64.9	8	6	11.9	7.8	17.0	12.1
Eliminations and non-allocated costs	-6.1	-7.7	—	—	-7.2	-13.5	—	—
Group total	464.2	471.8	-2	-2	75.1	58.4	16.2	12.4

 

 

For further information, please contact:

Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen (at) tieto.com

Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288, tommi.jarvenpaa (at) tieto.com

 

 

A webcast for analysts and media will be held on 12 February at 10.00 a.m. EET (9.00 a.m. CET, 8.00 a.m. UK time). Endre Rangnes, President and CEO, and Tomi Hyryläinen, CFO, will present the results online in English. The presentation can be followed on the company's website.

 

To take part in the questions and answers session after the presentation you will need to dial in by phone. You can access the webcast by registering on this link. After registration you will be provided phone numbers, user ID and a conference ID to access the conference.

 

The event is recorded and it will be available on demand later during the day. Tieto publishes its financial information in English and Finnish.

 

Tietoevry Corporation

 

DISTRIBUTION
Nasdaq Helsinki
Nasdaq Stockholm
Oslo Børs
Principal Media

 

 

Tieto is a leading software and digital engineering services company with global market reach and capabilities. We provide customers across different industries with mission-critical solutions through our specialized software businesses Tieto Caretech, Tieto Banktech and Tieto Indtech as well as Tieto Tech Consulting business. Our around 14 000 talented vertical software, design, cloud and AI experts are dedicated to empowering our customers to succeed and innovate with latest technology.

 

Tieto’s annual revenue is approximately EUR 2 billion. The company’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. www.tietoevry.com