NNIT A/S: NNIT improved profitability amid negative growth due to market uncertainty

Q2 2025 key highlights

In the second quarter, the financial performance continued to be impacted by macroeconomic and geopolitical uncertainty. The market unrest led to a slowdown in the IT Life Science consultancy industry with lower expectations to market growth compared with the start of the year¹, especially affecting Region Europe. Furthermore, the timing of Easter had negative revenue implications, especially in Region Europe and Denmark. Towards the end of the quarter, NNIT saw early signs of improvement and increased demand for IT Life Science services and entered new engagements with large international Life Science companies across regions with start from the second half of the year. Furthermore, Region US returned to growth and showed solid improvement in profitability. Reported Group revenue declined 2.5% to DKK 462.2m equal to negative organic growth of 1.7%
Group operating profit margin excluding special items ended at DKK 22.9m, corresponding to a margin of 5.0%. The margin improved compared with the previous quarter due to cost reduction initiatives carried out during 2024 and the first quarter of 2025. However, the margin is lower compared with the same quarter last year, which was mainly due to lower revenue generation in a challenged market combined with timing of Easter and lower corporate cost in the same quarter last year related to non-recurring costs
In the second quarter, NNIT continued to strengthen its go-to-market strategy by increasing lead generation, expanding market tiering and focusing on fewer solutions that are repeatable and applicable across regions to drive growth and improve profitability. NNIT has continued to refine its operating model to enable further efficiency gains through initiatives such as streamlining of the organizational blueprint and enhanced capacity planning. All of this is supported by an enhanced performance management steering model
The full-year financial outlook announced on May 5, 2025, cf. company announcement 04/2025 is confirmed and narrowed. NNIT expects to end the full year within the lower end of the guided range for both organic growth (0% to 5%) and group operating profit margin excl. special items (7% to 9%) due to continued macroeconomic unrest. NNIT expects an improvement in performance towards the latter part of the year mainly driven by the backlog, efficiency gains and full effect of cost reductions already effectuated

Activity continued to be dampened by geopolitical unrest leading to a slowdown in the IT Life Science consultancy industry in the second quarter. Customers are still hesitant to engage, leading to lower pipeline generation, fewer new projects being initiated, and projects of a smaller scope compared with last year. NNIT has refined its operating model and go-to-market plan to navigate this environment and is now focusing on fewer solutions that are repeatable and work across regions within the Life Science domain, while broadening its market focus and reducing the overhead cost base with a full-year run-rate impact of around DKK 30 to 35 million.

Pär Fors, President and CEO of NNIT, comments “The market unrest has continued to dampen the IT Life Science industry in general, and also the business performance of NNIT in the second quarter with growth and profitability ending at a moderate level. We have taken additional important steps to further gain operational efficiency and rightsizing the cost base in a challenging environment. We continue to see solid opportunities for growth and higher profitability supported by the backlog and the strategic initiatives we have carried out.”

¹Source: Everest Group - Growth Opportunities in Life Sciences IT Services Market – June 2025

Financial overview - Selected key figures

NNIT A/S, DKK million	Q2 2025	Q2 2024	6M 2025	6M 2024	FY 2024
Revenue	462.2	473.9	926.3	937.4	1,851
Revenue growth, %	-2.5%	11.8%	-1.2%	12.0%	7.1%
Revenue growth, organic %	-1.7%	11.0%	-1.3%	9.5%	6.0%
Group operating profit excl. special items	22.9	32.0	40.9	55.9	118
Group operating profit margin excl. special items, %	5.0%	6.7%	4.4%	6.0%	6.4%
Special items	20.3	15.2	45.7	3.9	69
Group operating profit incl. special items	2.6	16.8	-4.8	52.0	49
Group operating profit margin incl. special items, %	0.6%	3.5%	-0.5%	5.5%	2.6%

CONFERENCE CALL

September 4, 2025, at 9:30 AM CEST: Webcast link

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ABOUT NNIT

NNIT is a leading provider of IT solutions to life sciences internationally, and to the public and private sectors in Denmark.

We focus on high complexity industries and thrive in environments where regulatory demands and complexity are high.

We advise on and build sustainable digital solutions that work for the patients, citizens, employees, end users or customers.

We strive to build unmatched excellence in the industries we serve, and we use our domain expertise to represent a business first approach – strongly supported by a selection of partner technologies but always driven by business needs rather than technology.

NNIT consists of group company NNIT A/S and the subsidiary SCALES. Together, these companies employ more than 1,700 people in Europe, Asia and the USA.

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