Business giant Bechtle is closing the gap on its yearly objectives
Despite the departure of CEO Thomas Olemotz, German IT company Bechtle is pushing to meet its annual targets with a renewed emphasis on government contracts and international markets. The company aims for revenue growth between 0% and 5% for 2025, requiring a sharp pick-up in the second half of the year to stay on track.
The growth strategy for the second half of 2025 focuses on a recovery and acceleration of revenue growth, driven primarily by international expansion and strong public sector demand. Bechtle's business volume growth was notably strong internationally, particularly in Benelux and UK markets, and this trend is expected to continue.
Growth is expected to be mostly driven by the public sector, following several framework agreements secured recently. Olemotz is banking on orders from the public sector to drive growth in the second half of the year. He stated that while they are not yet meeting their growth rates, they are back on track for growth with the developments in the second quarter.
Pre-tax profit for 2025 is expected to remain in the lower half of the forecast range, reflecting ongoing cost pressures and a challenging macroeconomic environment. The company aims to close the earnings gap experienced in the first half of the year by year-end, which is ambitious but considered achievable by management.
In a positive sign, revenue, including software sales, increased by 5% to 1.93 billion euros in the second quarter. However, profit before taxes in the second quarter was 20% below the previous year's level, at 66.8 million euros. Despite this, shares of Bechtle rose by up to 12% to over 41 euros on Friday due to optimism.
With Olemotz stepping down at the end of 2026 after 20 years of service, Christian Jehle will take over as CFO of Bechtle starting from 2026. Jehle is joining Bechtle from competitor Computacenter. Olemotz stated that it is time to "make way for the younger generation."
In summary, Bechtle’s growth strategy for late 2025 is to capitalize on public sector demand and international markets to accelerate revenues, stabilize profitability, and regain growth momentum despite recent leadership changes and earnings challenges. The company is aiming to achieve its revenue and profit targets for the year.
- Bechtle's growth strategy in the second half of 2025 focuses on capitalizing on public sector demand and international markets to drive financial growth, primarily aiming for revenue growth.
- The business's financial growth is expected to be predominantly fueled by the public sector, with a recovery and acceleration of revenue growth driven by international expansion.
