SoftwareOne up double digit today

SoftwareOne, 10.4% growth and reported EBITDA at 26.6%

SWON delivered 10.4% like-for-like revenue growth in Q2 and a reported EBITDA margin of 26.6%, +6.5pp YoY, resulting in reported EBITDA up 44.3% YoY.

Run-rate cost synergies of CHF 100m have been achieved six months ahead of target, a further CHF 5-10m to be realised in H2. The industrial logic is coming through.

H1-26 was helped by early renewals, and multi-year CSP agreements pulled forward ahead of Microsoft's July-26 price increases. Management expects growth to slow in H2. Full-year guidance is not changed upwards, but SWON is certainly ahead of target after H1.

The consulting arm (Services) posted much-needed margin improvement year on year (finally), with the adj. EBITDA margin at 11.6% in Q2 versus 5.1% a year earlier. The dual leadership is now history as expected, and CEO Raphael Erb brings an operational, sales-oriented track record from the Asia Pacific region, which points to a "no-nonsense" agenda that has been sorely lacking at SoftwareOne over the past five years.

Our target price is CHF 11.1 and is likely to see only minor adjustments. Still priced significantly below peers at EV/EBIT (27e) 7.6x

Share price up double digit today 🔥 

Disclaimer:
Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)

Best regards,
David and Sverre

Hvaler Invest AS
Lillestrøm, Norway
26.08.26