Cancom's Q4 revenue growth accelerates, with strong EBITDA profit margin performance

Investing.com – Cancom reported a 0.9% year-over-year increase in revenue for Q4 2025, slightly below market expectations but demonstrating continued acceleration compared to previous quarters.

This German IT service provider showed a quarter-by-quarter improvement in growth rate for the full year of 2025, with the 0.9% growth in Q4 building on a 0.3% increase in Q3, while Q2 and Q1 experienced declines of 0.4% and 6.8%, respectively.

Considering the more challenging comparison base in Q4, this acceleration is particularly notable.

The company’s EBITDA slightly exceeded expectations, reaching €38.6 million with an 8.0% profit margin, up from 5.5% in the same period last year.

This performance supports the view that Cancom is benefiting from an improved business mix and effective cost-cutting measures. EBITDA for this quarter grew more than 40% quarter-over-quarter, surpassing normal seasonal patterns.

Cash flow in Q4 strengthened, offsetting weaker performance in the first nine months of 2025 compared to 2024.

The acceleration in growth appears to be driven by normalization of public spending trends in Germany, especially in the local business sector. Public spending in Germany is expected to be a key growth driver in the first half of 2026.

As expected, Cancom did not provide guidance for fiscal year 2026 in these preliminary results. The company plans to release final results and outlook on March 26.

Analysts note that while current business conditions seem stable, uncertainties remain in the coming months regarding memory supply and pricing.

So far, the market has accepted price increases, with the high-end product portfolio better able to absorb these increases than lower-end products.

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