PSI Software's Strong Performance and Positive Outlook

On April 30, PSI Group announced its Q1 results, surpassing revenue expectations and affirming the 2025 forecast. The company experienced significant growth due to record new orders and an increased order backlog. This expansion spanned multiple segments, including Grid & Energy Management, Process Industries & Metals, Discrete Manufacturing, and Logistics. Initial advances in cloud/SaaS adoption and a strategic partnership with Google Cloud also contributed.

While execution risks on major contracts and integration of new solutions pose challenges, the EBIT margin recovered from previous cyberattack losses, exceeding expectations thanks to better fixed-cost absorption and segment profit recovery. Management projects a 10.0% year-on-year revenue increase and a 4.0% adjusted EBIT margin for 2025, aligning with forecasts. The transition to cloud/SaaS, supported by the Google Cloud partnership, is set to enhance recurring revenue and earnings predictability. The target price has been raised to EUR 35.50, and the Buy recommendation is maintained.