For Sitowise, 2024 was well below expectations and the outlook for 2025 is for another weak year in terms of results. The profitability challenges in the Buildings and Swedish businesses will continue for the time being, and a turnaround will require not only improved operational performance but also market traction. Given the risks to the business and the uncertain turnaround, we do not see the stock's risk/reward ratio as attractive now.

Sitowise reported a much weaker than expected Q4 report on Wednesday. The company's revenue declined almost in line with expectations, but profitability was well below our expectations due to low utilization rate and challenges in the businesses.

We expect revenue to have declined in the last quarter of the year due to the weak market situation in house building and the timing of the Christmas holidays. However, we expect profitability to have improved due to the savings measures in the Swedish business and significant IT system expenses in the comparison period. But after a weak 2024, the focus will be on guidance and the outlook for the future.

Sitowise invites investors and analysts to an event on 4 December 2024, where the business, product offering and growth opportunities of Sitowise’s Digital Solutions business area will be explored in more detail.