Bechtle Stock: Q1 Slump Despite Cautious Optimism

IT service provider Bechtle faced a significant downturn in the first quarter of 2025, with preliminary figures falling well below market expectations. The company reported a pre-tax profit (EBT) of approximately €55 million, representing a steep 33% decline compared to the previous year's €82 million. Revenue also decreased by about 3% to €1.46 billion, while business volume remained relatively stable at €1.96 billion. This disappointing performance has primarily been attributed to increased personnel costs from previous acquisitions and higher wage-related expenses, alongside reduced bonus payments from manufacturing partners that impacted results by approximately €5 million.

Recovery Signs Emerge

Despite the troubling start to the year, Bechtle's management has maintained its full-year 2025 forecast, still expecting business volume growth between 0% and 5%, revenue movements ranging from -3% to +3%, and pre-tax profit fluctuations of ±5%. This confidence stems from early indications of market recovery observed in April, particularly among previously hesitant public sector clients in Germany. The stock, which initially dropped by over 4% following the announcement, has shown signs of stabilization as investors appear to be betting that the company has reached its lowest point and that management's maintained guidance isn't merely empty promises. Final quarterly figures will be released on May 9, when investors will gain further insight into whether the anticipated second-half recovery remains realistic.

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Source StockWorld