News Summary
Admicom Oyj has released its Q2 financial results, showing a mix of outcomes amid slow recovery in the construction industry. The company’s ARR growth declined slightly, impacted by customer churn, while steps to enhance revenue include AI initiatives and the appointment of a new strategy officer. Despite challenges, Admicom aims to reach €100 million in ARR by 2030 through restructuring and focusing on customer satisfaction.
Admicom Oyj Reports Mixed Q2 2025 Financial Results Amid Slow Recovery in Construction Industry
On July 8, 2025, Admicom Oyj released its Q2 2025 interim financial results, showcasing a mix of growth and challenges as the construction industry continues to recover slower than expected. Led by CEO Simo Leisti and CFO Satu Helamo, the Finnish construction software provider is focusing on artificial intelligence (AI) development and transforming its billing model to spur growth.
Despite cautious investor optimism, reflected in a stock closing price of €53.40—up 1.91% from the prior close—the company reported only modest growth figures. Admicom’s Annual Recurring Revenue (ARR) grew by 6.0% in Q2 2025, a dip from the 6.7% reported in the same quarter of the previous year. Nevertheless, the recent acquisition of Bauhub significantly influenced the growth of ARR for Admicom.
In terms of revenue performance, Admicom experienced a total revenue growth of 2.2%, which marks an improvement from 0.7% in Q2 2024. Moreover, the recurring revenue growth saw an increase to 4.3%, compared to only 1.7% in Q2 2024. However, the company’s adjusted EBITDA declined to 32.0% from the previous year’s 38.4%, indicating pressures on profitability.
Customer churn also ticked up slightly to 6.0% at the end of Q2 2025, rising from 5.6% at the end of 2024. Quarter-to-quarter, ARR growth was minimal at 0.2%, adversely impacted by annual adjustment fees.
In a bid to enhance its offerings, Admicom is currently conducting pilot programs with 15 construction companies focused on implementing AI functionalities. These pilots aim to develop an AI chat interface that streamlines project reporting and operations, signifying the company’s commitment to leveraging technology for improved customer service.
In addition to its AI focus, Admicom plans to phase out annual adjustment fees starting from Q4 2025 as part of a new billing model. This move is designed to improve revenue predictability and enhance customer experiences, a strategic shift that reflects the company’s aim to adapt to changing market demands.
The organizational structure at Admicom is also evolving, with Henna Kotilainen being appointed as Chief Strategy Officer, effective September 1, 2025. This appointment is expected to strengthen the company’s strategic direction and business development initiatives.
Looking forward, Admicom has maintained its financial outlook for 2025, predicting ARR growth in a range of 8-14% and total revenue growth of 6-11%. Moreover, the adjusted EBITDA forecast is projected to be between 31-36%, positioning the company to possibly meet its future goals.
Admicom has set an ambitious target of reaching €100 million in ARR by the year 2030, aspiring to be the go-to choice in the European construction software ecosystem. To achieve this, the company is restructuring to focus on seven strategic execution streams aimed at enhancing internationalization, unifying platform experiences, and improving accounting services.
Despite efforts in growth strategies, revenue growth in the first five months of 2025 was just 2% year-over-year, highlighting ongoing challenges that the construction market faces. Sales bookings saw a 4% increase, with over 20% of customers utilizing multiple products from Admicom’s offerings, demonstrating a potential for deeper customer engagement.
The shift towards a new billing model is anticipated to yield significant benefits in terms of revenue predictability and overall customer satisfaction. Overall, Admicom’s current financial performance, coupled with the sluggish recovery in the broader construction industry, underscores a pivotal moment for the company, as it navigates its growth and profitability trajectory.
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Additional Resources
- Investing.com: Admicom Q2 2025 Slides on AI Initiatives
- Wikipedia: Artificial Intelligence
- TradingView: Reuters News
- Google Search: Admicom Q2 2025
- Investing.com: Admicom Q2 2025 Earnings Call Transcript
- Google Scholar: Admicom
- Investing.com: Admicom Q2 2025 Slides on Modest Growth
- Encyclopedia Britannica: Construction Software
