Digia's change negotiations support profitability and were in line with expectations
Summary
- Digia completed change negotiations, achieving annual savings of approximately 2.4 MEUR, aligning with the anticipated target of 2-3 MEUR and supporting profitability.
- The negotiations affected around 300 employees, resulting in a final reduction of 31 positions, smaller than the initially anticipated 50, due to internal role transfers and new customer projects.
- The savings support the 2026 adjusted EBITA forecast of 23.2 MEUR (10.3% margin), aiding Digia's goal of reaching an EBITA margin of over 12% by the end of the strategy period (2026-2028).
- One-off costs of 0.7 MEUR from the negotiations will be recognized in Q1'26 earnings, slightly higher than previous estimates, but not significantly impacting the overall financial outlook.
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Translation: Original published in Finnish on 04/01/2026 at 07:50 am EEST
On Tuesday, Digia announced that it had completed the change negotiations launched at the beginning of March (link to the press release). The annual savings of around 2.4 MEUR achieved through these measures are well in line with the previously anticipated target level of 2-3 MEUR and support profitability. The release does not cause changes to our estimates, as we had already taken into account the need for adjustment and the savings target in our estimates.
Adjustment measures target areas of weakened demand
The change negotiations were prompted by the current market situation in the IT services sector, which has affected customer demand in certain service areas of Digia. The negotiations concerned approximately 300 people out of the company’s some 1,600 employees. The final reduction need (31 people) was smaller than anticipated (50), partly due to internal role transfers and the employment impact of new customer projects. In our view, precise adjustments are a natural and necessary response to market dynamics and the company's increased size, where declining segments are inevitable.
Savings support improving profitability towards targeted levels
The annual savings of around 2.4 MEUR resulting from the negotiations support our estimate of the 2026 adjusted EBITA, which is 23.2 MEUR in our forecast (adj. EBITA 10.3%). Efficiency measures are also key as Digia aims to increase its profitability towards the targeted EBITA margin of over 12%, set for the end of the new strategy period (2026-2028).
One-off costs of 0.7 MEUR resulting from the negotiations will be recognized in the Q1'26 earnings, and we will include these in our estimates in our next update. The sum is slightly higher than our previous estimate (under 0.5 MEUR), but the difference does not have a significant impact on the overall picture. Alongside these adjustments, Digia continues its strategic investments in areas such as AI and internationalization, which is in line with the goals of the "Renew" phase, the first year of the company's strategy period.
Digia is an IT consulting company. The company specializes in system integration, web analytics, and internal processes that affect efficiency and decision management. The company's services are used in a number of sectors, from the financial sector to the grocery retail and energy sector. The largest operations are found in the Nordic market. The headquarters are located in Helsinki.
Read more on company pageKey Estimate Figures05/02
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 217.0 | 225.5 | 231.7 |
| growth-% | 5.5 % | 3.9 % | 2.7 % |
| EBIT (adj.) | 22.9 | 23.2 | 25.2 |
| EBIT-% (adj.) | 10.5 % | 10.3 % | 10.9 % |
| EPS (adj.) | 0.63 | 0.65 | 0.72 |
| Dividend | 0.19 | 0.21 | 0.23 |
| Dividend % | 2.9 % | 3.7 % | 4.0 % |
| P/E (adj.) | 10.5 | 8.8 | 8.0 |
| EV/EBITDA | 7.9 | 6.2 | 5.3 |
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