EQS-News: GFT Starts 2025 with Solid Growth

GFT Starts 2025 with Solid Growth

Strong Growth in Americas and Insurance Business Confirm Strength of AI-Centric Strategy in Challenging Environment, Five-Year Strategy in Execution

• Group revenue up 4 percent
• Insurance business (+24 percent) drives growth, banking business stable
• Solid growth trajectory in the USA, Canada, Latin America and APAC, laying foundations for future expansion
• Successful entry to the robotics industry with major AI contract in global leading robotics company based in Germany
• Order backlog up 14 percent
• Challenges identified in UK and Software Solutions; earnings affected
• Guidance 2025 confirmed: growth set to continue; revenue of approx. EUR 930 million, adjusted EBIT of approx. EUR 75 million

Stuttgart, 8 May 2025 – GFT Technologies SE (GFT) continues to deliver on its five-year strategy, with first-quarter revenue up 4 percent. Strong growth in North and Latin America, APAC and a 24 percent surge in the insurance business confirmed the strength of GFT’s AI-centric setup. A major AI project has taken GFT into the robotics market. Early signs of recovery in Europe and an order backlog increase of 14 percent added further momentum.

GFT AI Impact also continued to gain traction: the number of new licenses sold increased from 315 in the previous quarter to 440 in the first quarter of 2025. More than 10,000 GFT engineers have now been trained with the GenAI product, and the first US client has been won. AI Impact boosts software development productivity by 50 to 90 percent. GFT also strengthened its market presence, earning the Google Cloud Country Partner of the Year Award for Germany and two FS Tech Awards – “Best Use of IT in Consumer Finance” and “Financial Services Collaboration of the Year”, and a Fintech Breakthrough Award for “Best Digital Bank”. Another major highlight was that the integration of Sophos Solutions was completed in Q1 – after one year, exactly as planned. GFT’s MSCI ESG rating was also upgraded by two notches to A, underscoring its commitment to sustainable, responsible growth.

“We focus on executing our five-year strategy, and our portfolio proves its high resilience. Growth in North America, Latam, APAC and signs of business picking up in Europe show that our AI-centric strategy is successfully setting us apart from our competitors. The same goes for our sector mix: the insurance business has once again turned into a major growth driver for us and we have entered the dynamic robotics sector with a multi-million AI contract which opens up a new frontier for GFT,” said GFT’s Global CEO Marco Santos. He continued: “Where we are confronted with structural challenges, mainly the UK market and at Software Solutions GmbH, we are owning and addressing those challenges with a clear transformational plan, utmost dedication and a long-term view.”

The GFT Group generated revenue of EUR 221.91 million in the first three months of 2025. The company thus exceeded the prior-year figure of EUR 212.39 million by 4 percent (on constant currencies +7 percent). GFT achieved growth of 24 percent in the Insurance sector and 12 percent in the Industry & Others sector. Revenue in the Banking business was stable (+0 percent).

Dynamic Growth in Americas and APAC, Business in Europe Picking up, Challenges in UK Identified

Revenue in the Americas, UK & APAC segment increased by 10 percent compared to the previous year’s period. This includes the acquisition of Sophos Solutions, which is reflected in the group figures with effect from 1 February 2024. The increase was driven by strong growth in Brazil, the USA, Canada and Colombia. Revenue in Latin America grew by 29 percent, in North America by 19 percent, whereas business in the UK was down 20 percent over the previous year. The Continental Europe segment slowed down by 2 percent due to macroeconomic challenges.

“There are currently clear challenges for our industry in the European markets, driven by global tariff discussions and recessionary fears. However, our strong pipeline in several countries including the USA serves as an important stabilizer for our overall business outlook,” stated Jochen Ruetz, CFO of GFT. He continued: “We remain vigilant in monitoring these market dynamics while taking confidence in the diversity of our revenue streams. This balanced exposure allows us to maintain our financial targets despite the headwinds we’re experiencing in European markets.”

Operating Earnings Impacted by Higher Personnel Costs

Adjusted EBIT decreased by 18 percent year-on-year to EUR 15.09 million (Q1/2024: EUR 18.31 million). This decrease was mainly due to additional investments fostering future growth, higher social security contributions, lower R&D subsidies in various markets, and challenges in the UK market and at Software Solutions GmbH. Structural transformational initiatives in order to address both the UK market and Software Solutions GmbH are underway.

The adjusted EBIT margin was 6.8 percent in the first three months of 2025 (Q1/2024: 8.6 percent)¹⁾. At EUR 10.01 million, EBT has decreased by 33 percent over the same period of the previous year (Q1/2024: EUR 15.00 million).

Share Buy-back Program Started

Cash flow from operating activities of EUR -4.31 million (Q1/2024: EUR 6.42 million) was impacted by increased amount of funds tied up in working capital, especially in customer receivables – following highly positive effects in the fourth quarter of 2024 from significant payments by major clients.

As at 31 March 2025, the group employed a total of 11,413 full-time equivalents (FTEs). This corresponds to a slight decrease of 1 percent compared to 11,506 FTEs at the end of 2024.

GFT has decided to buy back up to EUR 15 million worth of its own shares, underscoring the company’s confidence in the new five-year strategy. The share buy-back program via the stock exchange is based on the authorization granted by the Annual General Meeting on 24 June 2020 to purchase treasury shares up to 10 percent of share capital. It began in April 2025 and, subject to renewed authorization by the Annual General Meeting on 5 June 2025, shall end no later than October 14, 2025.

Outlook 2025 and Mid-Term Targets 2029 Confirmed: Growth to Continue

Although some markets remain challenging, GFT expects further growth in group revenue in the financial year 2025. The company confirmed its guidance for this year.

In detail, the company continues to expect revenue growth in 2025 of 7 percent to EUR 930 million. Adjusted EBIT is forecast to decrease by 4 percent to around EUR 75 million.

By 2029, GFT aims to generate EUR 1.5 billion in revenues with an adjusted EBIT margin of 9.5 percent. GFT expects continued revenue growth, driven by organic growth and targeted acquisitions in core markets. Ongoing investment in GFT assets will support this trajectory. Profitability is set to rise as the service mix shifts to higher-margin offerings and smartshore delivery expands. A focus on existing markets will drive further scale and efficiency.

Key Figures (IFRS)
(Deviations possible due to rounding differences)

In EUR million	Q1 2025	Q1 2024	∆
Revenue	221.91	212.39	4%
EBITDA	15.99	21.81	-27%
Adjusted EBIT1)	15.09	18.31	-18%
Adjusted EBIT margin (in percent)	6.8	8.6	-1.8 PP
EBIT	10.82	15.72	-31%
EBT	10.01	15.00	-33%
Net income	7.09	10.62	-33%
Earnings per share in EUR	0.27	0.40	-33%
Operating cash flow	-4.31	6.42	<-100%
Order backlog	462.25	404.58	14%
In EUR million	31/03/2025	31/12/2024	∆
Employees (FTE)	11,413	11,506	-1%
Net liquidity	-51.08	-42.53	-20%
Equity ratio (in percent)	44%	42%	2 PP

1. GFT has changed the calculation method of the adjusted EBIT for the consolidated results as of FY 2025. Adjusted for special items from M&A activities, capacity adjustments, share price-based effects in connection with the measurement of variable management compensation, and other extraordinary items. For comparison purposes, the corresponding previous year’s figures are recalculated accordingly.

Further information on the definition of alternative performance measures is provided here on the GFT website.

Marco Santos, Global CEO of GFT      Source: Tom Maurer/GFT

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This press release is also available for download via the GFT newsroom

 

Your contacts
Press Dr Markus Müller Group Public Relations GFT Technologies SE Schelmenwasenstraße 34 70567 Stuttgart Germany +49 711 62042-344 markus.j.mueller@gft.com	Investors Andreas Herzog Investor Relations GFT Technologies SE Schelmenwasenstraße 34 70567 Stuttgart Germany +49 711 62042-383 Andreas.Herzog@gft.com

 

About GFT

GFT Technologies is a responsible AI-centric global digital transformation company. We deliver advanced Data & AI transformation solutions, modernize technology architectures, and develop next-generation core systems for industry leaders in Banking, Insurance, Manufacturing and Robotics. Partnering closely with our clients, we push boundaries to unlock their full potential.

With deep industry expertise, cutting-edge technology, and a strong partner ecosystem, GFT delivers responsible AI-centric solutions that combine engineering excellence, high-performance delivery, and cost efficiency. This makes us a trusted partner for sustainable impact and customer success.

Our team of 12,000+ technology experts operate in 20+ countries worldwide, offering career opportunities at the forefront of software innovation. GFT Technologies SE (GFT-XE) is listed in the SDAX index of the German Stock Exchange.

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