Wirtek (Investment case): Strategy execution shows first proof points

Following Wirtek's Q1 2026 interim report, we have updated our investment case to reflect the first full quarter of impact from the new strategy launched last year. Our investment case covers the key investment reasons and risks and valuation perspectives.

Q1 2026 supports the core thesis. Revenue of DKK 15.5m was broadly flat year-on-year (-0.3%), while EBITDA improved to DKK 0.6m from DKK -1.1m, an 11-percentage-point swing in the EBITDA margin to 3.9%. This is exactly the type of operating leverage we have highlighted since H2 2025 – earnings expanding meaningfully on a stable topline due to the adjusted cost base and high fixed-cost intensity in the business.

The most important signal in the quarter, in our view, is the gross margin lift to 61.8% from 54.0%. Management attributes the improvement to better utilisation, tighter delivery discipline, and the early impact of AI-assisted delivery in Services. AI is one of the central debates in the IT consultancy sector right now, and Wirtek is starting to show what the upside scenario looks like: efficiency gains accruing to the company rather than being competed away. With Wirtek also reporting early traction for productised, AI-assisted service offerings, the strategic shift from pure time-and-materials toward higher-value, outcome-based engagements is moving from plan to early evidence.

This matters for the risk picture. The most cited bear case for IT services companies is that AI compresses hourly pricing and erodes the traditional services model. Wirtek's response – moving part of the business toward productised, outcome-based delivery while letting AI improve internal efficiency – is the right strategic answer, and Q1 provides the first tangible data points that it is working at both ends. The shift is early, and a change in business model always carries execution risk, but the Q1 numbers reduce the burden of proof.

On the Solutions side, the Wirtek IoT Suite continues to mature in line with plan and remains in an investment phase, with elevated investments in 2026 and 2027 aimed at scaling recurring subscription revenue over time. The strategy's positioning toward energy and industrial IoT is well-aligned with structurally higher energy prices and the resulting demand for solutions that improve energy efficiency and enable real-world data collection for physical AI applications.

Wirtek maintains its full-year 2026 guidance of DKK 65–70m revenue and DKK 3–6m EBITDA, representing growth of 1-9% on the topline and 76-253% on EBITDA. Q1 is typically the seasonally softest quarter, and management notes that the result is consistent with the trajectory required to deliver on guidance, supported by confirmed project extensions and stable utilisation entering Q2. The new strategy is expected to continue taking effect across both divisions through the remainder of the year.

From a valuation perspective, Wirtek trades at EV/Sales of 0.6x on 2026 guidance versus a Nordic peer median of 0.8x, and EV/EBITDA of 9.7x at the guidance midpoint versus a peer median of 7.4x. The EV/EBITDA premium reflects the still low absolute EBITDA level, where small changes have a large multiple impact. Wirtek also continues to trade well below its own three-year historical EV/Sales average, in line with the broader Nordic IT consultancy sector. Higher growth and further proof that margins can scale are the catalysts that could close that gap.

For further insights into the Q1 2026 results and the early progress on the new strategy, you can watch the management present the results here:

Wirtek - Q1 2026 Event

Disclaimer: HC Andersen Capital receives payment from Wirtek for a Digital IR agreement. Michael Friis, 07:00, 18.05.2026.