EXECUTIVE SUMMARY
NNIT IMPROVED PROFITABILITY AMID NEGATIVE GROWTH DUE TO MARKET
UNCERTAINTY
Q2 2025 key highlights
•
In the second quarter, the financial performance continued to be impacted by macroeconomic and
geopolitical uncertainty. The market unrest led to a slowdown in the IT Life Science consultancy industry
with lower expectations to market growth compared with the start of the year1, especially affecting
Region Europe. Furthermore, the timing of Easter had negative revenue implications, especially in
Region Europe and Denmark. Towards the end of the quarter, NNIT saw early signs of improvement
and increased demand for IT Life Science services and entered new engagements with large
international Life Science companies across regions with start from the second half of the year.
Furthermore, Region US returned to growth and showed solid improvement in profitability. Reported
Group revenue declined 2.5% to DKK 462.2m equal to negative organic growth of 1.7%
Group operating profit margin excluding special items ended at DKK 22.9m, corresponding to a
margin of 5.0%. The margin improved compared with the previous quarter due to cost reduction
initiatives carried out during 2024 and the first quarter of 2025. However, the margin is lower compared
with the same quarter last year, which was mainly due to lower revenue generation in a challenged
market combined with timing of Easter and lower corporate cost in the same quarter last year related
to non-recurring costs
In the second quarter, NNIT continued to strengthen its go-to-market strategy by increasing lead
generation, expanding market tiering and focusing on fewer solutions that are repeatable and
applicable across regions to drive growth and improve profitability. NNIT has continued to refine its
operating model to enable further efficiency gains through initiatives such as streamlining of the
organizational blueprint and enhanced capacity planning. All of this is supported by an enhanced
performance management steering model
The full-year financial outlook announced on May 5, 2025, cf. company announcement 04/2025 is
confirmed and narrowed. NNIT expects to end the full year within the lower end of the guided range
for both organic growth (0% to 5%) and group operating profit margin excl. special items (7% to 9%)
due to continued macroeconomic unrest. NNIT expects an improvement in performance towards the
latter part of the year mainly driven by the backlog, efficiency gains and full effect of cost reductions
already effectuated
•
•
•
Activity continued to be dampened by geopolitical unrest leading to a slowdown in the IT Life Science
consultancy industry in the second quarter. Customers are still hesitant to engage, leading to lower pipeline
generation, fewer new projects being initiated, and projects of a smaller scope compared with last year. NNIT
has refined its operating model and go-to-market plan to navigate this environment and is now focusing on
fewer solutions that are repeatable and work across regions within the Life Science domain, while broadening
its market focus and reducing the overhead cost base with a full-year run-rate impact of around DKK 30 to 35
million.
Pär Fors, President and CEO of NNIT, comments “The market unrest has continued to dampen the IT Life Science
industry in general, and also the business performance of NNIT in the second quarter with growth and profitability
ending at a moderate level. We have taken additional important steps to further gain operational efficiency and
rightsizing the cost base in a challenging environment. We continue to see solid opportunities for growth and higher
profitability supported by the backlog and the strategic initiatives we have carried out.”
1 Source: Everest Group - Growth Opportunities in Life Sciences IT Services Market – June 2025
Executive
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Business & Regional
Performance Review
Financial
Outlook
Other Events &
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Financial
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Accounting
Notes
COMPANY ANNOUNCEMENT 06/2025 | INTERIM FINANCIAL REPORT Q2 2025 | PAGE 2 of 20
