IT Link Holds Steady Despite Margin Squeeze in 2025
On Friday, IT Link confirmed its recurring operating income at 5.7% of revenue for 2025, in line with its forecasts. Despite this apparent stability, a more contrasting reality emerges: EBITDA fell by 1.7 percentage points, net income plummeted by 33%, and cash reserves decreased by €1.4 million. This situation contrasts with the launch of an ambitious strategic plan for 2028.
Financial Stability Amid Economic Uncertainty
With revenue of €82.57 million compared to €82.68 million in 2024, IT Link boasts remarkable stability in an uncertain economic environment. The recurring operating income stands at €4.7 million, representing 5.7% of revenue, confirming previously communicated guidance. However, EBITDA dropped to €6.28 million (7.6% of revenue), down by 1.7 percentage points from 2024. This decline is mainly due to a 1.1 point decrease in activity rate, impacting EBITDA by €0.7 million, combined with an unfavorable calendar effect of €0.3 million. More significantly, net income plunged by 33% to €2.7 million, incorporating the costs associated with managerial transition.
Cash Flow Challenges
The group's net cash position retracted to €3.8 million as of December 31, 2025, down from €5.2 million a year earlier, a decline of €1.4 million. The management attributes this shift to a technical constraint in the billing process that caused a payment delay for services in the second half of the year by a major client. This receivable, amounting to €1.7 million, was only regularized at the beginning of 2026. In fact, the group's operational cash flow only generated €2 million in positive flows related to business growth, a modest indicator that could suggest difficulties in converting revenue into cash.
Launching the SYNERGIES 2028 Plan
In this context, IT Link unveiled its SYNERGIES 2028 plan, succeeding Connext 2025. The plan is based on three pillars: a 'Customer Centric' approach to strengthen relationships with strategic clients, maximizing organizational synergies and processes (Synergies 360), and accelerating digital transformation. For 2026, the management anticipates a return to growth from the second quarter, aiming for a revenue increase between 1% and 3%. The group also aims to improve profitability, with a target recurring operating income around 6%, marking a recovery of 30 basis points compared to 2025. However, this trajectory remains contingent upon resolving activity rate constraints and improving the macroeconomic and geopolitical context.
