Q1 2025 - Topicus.com - Analysis
Solid organic growth in maintenance, stabilizing margins, Cipal Schaubroeck acquisition still pending
Yesterday, Topicus.com (or TOI) announced its Q1 2025 results. As per usual, there’s no conference call to discuss the financial performance.
We wrote quite a bit on Topicus (and Constellation Software) already.
We’d summarize the report as follows: excellent cash flow, with a flattish EBITA margin and solid maintenance organic growth. As for M&A, we’d like to remind investors that the acquisition of the Belgian Cipal Schaubroeck is still pending. Meanwhile, excluding extraordinary deals, M&A momentum is still somewhat lagging our expectations at a time when implied market expectations point to a meaningful acceleration.
Let’s take a closer look at Topicus’ Q1 and our updated valuation model.
Headline Figures
Revenue recorded 16% growth versus prior year, of which 4% was organic (6% organic growth in maintenance and other recurring);
Underlying EBITA grew 16.1% with a 24.2% margin, up 2 bp versus prior year;
Topicus completed acquisitions worth 60.3m EUR, including acquired cash and deferred payments;
Free cash flow available to shareholders topped 28m EUR, or a +21%;