Investors

Outlook and guidance

Guidance for 2025

• Net sales are expected to grow by low to mid-single digit percentage in constant currency terms.

• Operating profit margin expected to see margin expansion of at least +200bp (2%).

• Raising free cash flow guidance to > EUR 4 million for the full year, from the previous guidance of > EUR 3 million.

• Capex as a percentage of net sales is targeted at 10–12%.

• Receivable days are expected to range between 100–140.

• Dividend pay-out policy targets 10% of free cash flow.

• Foreign exchange exposure to frontier country risk will be reduced to 10–15% within three years.

Assumptions for 2025

Industry analysts forecast that the long-term growth of the Business Support Systems (BSS) industry is forecasted to grow at +2.1% per annum 2022-2027. However, 2025 is forecast to be negative growth year. Despite this, Tecnotree still sees top line growth due to
anticipated significant market share gains and the current order backlog.

The company will continue its focus on increasing license sales, while evolving its delivery model to an Annual Recurring Revenue (ARR) model and continue to increase it in 2025. This will ensure that the company will have more predictable and stable quarter on quarter net sales.

The cost optimisation programme that commenced in 2024 will continue to provide margin benefits in 2025 and beyond.