Tecnotree raises 2026 revenue growth outlook, keeps free cash flow target above 5 million euros
Key Facts
Tecnotree raised its constant-currency revenue growth forecast for the 2026 financial year to the mid-to-high single digits, according to a company disclosure published on October 21, as its business outlook for the current year improved. Its previous guidance targeted low-to-mid single-digit revenue growth, also at constant currencies. The company kept its full-year free cash flow target unchanged at more than 5 million euros. The board based its decision on "preliminary unaudited financial information," according to the disclosure published through the company's newsroom on the Cision platform. The updated guidance thus combined a higher expected sales growth range with an unchanged free cash flow target.
The company attributed the revenue forecast revision to "stronger-than-expected order intake and execution," alongside its outlook for the remainder of the year. The improvement included execution of key customer programmes during the third quarter, while the update took fourth-quarter expectations into account. Tecnotree ended the first half with an order backlog of 106.3 million euros, according to its financial report for the period. The comparable backlog at the end of the first half of the previous year was 105.7 million euros. The order backlog thus rose 0.6% year on year, before the improvement in order intake and execution on which the company based its guidance increase.
The guidance revision followed growth in Tecnotree's revenue and earnings in the first half of the current year, according to the company's report for the period. Revenue reached 36.8 million euros, compared with 34.2 million euros in the first half of the previous year, an increase of 7.5% year on year. Operating profit rose to 13.2 million euros from 9.6 million euros in the corresponding period, an increase of 38.1%. Net profit reached 4.5 million euros, compared with 2.6 million euros a year earlier, an increase of 73.5%. Both operating profit and net profit grew faster than revenue over the same period.
On liquidity, first-half free cash flow reached 2.1 million euros, according to the company's financial report. Cash flow in the corresponding period was also 2.1 million euros after rounding, while the company reported year-on-year growth of 2.1% for the item. Tecnotree said collections of its receivables in the Middle East continued to be affected by geopolitical conditions in the region. First-half non-recurring expenses included trade receivables impairment losses of 5.2 million euros. These losses and the continued pressure on collections coincided with growth in earnings and revenue in the period's results.
Tecnotree provides software and services supporting digital transformation at telecommunications operators, according to its business profile. Its business model is based on product licences and professional services to customise those products, alongside maintenance and support services. In the Americas, the company signed an annual recurring revenue agreement with an existing telecommunications customer, according to its disclosure on the contract. The agreement has an approximate total value of 17.5 million dollars and runs for 3 years. Revenue recognition under the agreement begins in 2026, as part of the company's relationship with its existing customer in the region.
Tecnotree is scheduled to publish its next financial results on October 28, 2026, according to the company's investor relations page. Publication is set for 09.00 a.m. Helsinki time. The results release will be followed by a webcast to discuss them, according to the company's invitation to investors. The webcast will take place on October 29, 2026, at 10.00 a.m. Helsinki time. Chief Financial Officer Indiresh Vivekananda will present the results during the webcast.