Admicom integrating AI solutions into construction projects.
Admicom Oyj has released its Q2 financial results, showing a mix of outcomes amid slow recovery in the construction industry. The company’s ARR growth declined slightly, impacted by customer churn, while steps to enhance revenue include AI initiatives and the appointment of a new strategy officer. Despite challenges, Admicom aims to reach €100 million in ARR by 2030 through restructuring and focusing on customer satisfaction.
Admicom Oyj, a Finnish construction software provider, revealed its Q2 2025 interim report on July 8, showcasing a mix of encouraging and concerning financial metrics as the construction industry continues its slow recovery. The company’s leadership team, including CEo Simo Leisti and CFO Satu Helamo, is emphasizing strategic moves centered around artificial intelligence (AI) development and a transformation of its billing model to foster future growth.
Despite increasing optimism in the market, Admicom experienced modest growth figures. The company’s stock ended the day at €53.40, reflecting a 1.91% uptick from the previous close. The report revealed an Annual Recurring Revenue (ARR) growth of 6.0% for the second quarter of 2025, slightly down from 6.7% reported in the same quarter last year. The company’s recurring revenue growth reached 4.3%, an improvement from 1.7% in Q2 2024, while total revenue grew by 2.2%, significantly up from just 0.7% in the prior year.
Despite these positive revenue figures, the adjusted EBITDA saw a decline, falling to 32.0% from 38.4% year-over-year. This decline indicates a pressured profitability metric as the company grapples with the harsh realities of a recovering industry. The customer churn rate also slipped slightly to 6.0%, up from 5.6% at the end of 2024, further illustrating the challenges ahead.
On a brighter note, Admicom emphasizes its commitment to AI development by currently piloting AI functionalities with 15 construction firms. These initiatives are aimed at creating practical applications for the construction market. A significant focus of these pilot programs involves developing an AI chat interface designed to streamline project reporting and improve operations across the board.
To enhance revenue predictability and improve customer satisfaction, Admicom is planning to phase out annual adjustment fees with a new billing model set for launch in Q4 2025. This transformation is expected to have a positive impact on the company’s financial outlook, as they forecast ARR growth between 8-14% and total revenue growth of 6-11% for 2025. The adjusted EBITDA is projected to be in the range of 31-36%.
Adding to its strategy framework, Admicom has appointed Henna Kotilainen as the new Chief Strategy Officer, effective September 1, 2025. This role focuses on driving expertise in strategy and business development, likely aiding the firm as it pursues its ultimate goal of achieving €100 million in ARR by 2030. The company is also restructuring around seven strategic initiatives aimed at internationalization, a unified platform experience, and enhancing accounting services.
Although there are challenges, Admicom did experience a 4% increase in sales bookings within the first five months of 2025. Notably, over 20% of its customers are using multiple products, which illustrates customer loyalty and the potential for upselling within the existing client base. However, year-over-year revenue growth during this period was limited to just 2%, indicating the need for stronger performance as the broader construction market remains subdued.
In summary, Admicom Oyj’s financial report reflects a mix of growth potential alongside significant challenges as the construction industry gradually recovers. The company’s focus on AI-driven solutions and structural transformations is poised to enhance its position within the market. However, both its current financial performance and the ongoing industry conditions will significantly influence future growth and profitability.
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