Germany's PSI Software 9M revenue rises on Grid & Energy Management growth

Overview

• Germany software provider's 9-month revenue rose 3.6% yr/yr to EUR 210.9 mln

• Adjusted EBIT fell 20.7% due to restructuring and one-time expenses

• Company initiated cost-cutting program and faces delisting after public acquisition offer

Outlook

• PSI expects 2026 revenue growth of 5%

• Company forecasts 2026 order intake at previous year’s level

• PSI anticipates 2026 adjusted EBIT margin of about 2%

Result Drivers

• SEGMENT VARIATION - Grid & Energy Management and Logistics segments reported revenue growth, while Process Industries & Metals suffered from crisis in European steel industry

• RESTRUCTURING COSTS - Negative operating results in several segments were primarily due to restructuring costs and expenses related to cloud and SaaS transformation

• COST-CUTTING PROGRAM - Company initiated cost-reduction program to consolidate responsibilities and standardize processes

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for PSI Software SE is €45.00, about 0.2% above its October 29 closing price of €44.90

• The stock recently traded at 62 times the next 12-month earnings vs. a P/E of 57 three months ago

Reuters Recommended Reads

• Oct 28 - SAP swaps costly AI models for cheaper alternatives, targets over €2 bln in gains

• Oct 28 - Germany's Syzygy nine-month sales fall, driven by decline in German market

• Oct 29 - Germany's Baader Bank nine-month profit drops on partner loss

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)