Brunel Q1 2025 results: Operating in challenging market conditions

Core Insights - Brunel International N.V. reported a challenging first quarter in 2025 due to geopolitical uncertainty and a weakening economic environment, leading to project delays and a decrease in permanent recruitment fees [3][6] - The company experienced a EUR 3 million year-on-year decrease in permanent fees, marking the first decline in two years, as clients postponed direct hires across core markets [3][8] - Despite current challenges, there are promising opportunities due to a talent shortage and planned investments, particularly in the Americas and the Middle East & India [4][6] Financial Performance - Total revenue for Q1 2025 was EUR 310.5 million, down 11% year-on-year (down 10% organically) [8] - Gross profit decreased to EUR 56.5 million, down 18% (down 17% organically) [8] - Underlying EBIT fell to EUR 8.4 million, down 44% (down 35% organically) [8] Cost Management - The cost reduction program successfully lowered operating costs by EUR 6 million to EUR 48.1 million, a decrease of 11% [8] - The company is focusing on improving efficiencies and executing its IT and AI strategy to enhance conversion rates and reduce routine task time [5][6] Market Outlook - The macroeconomic uncertainty is expected to persist in the near term, but growth prospects remain positive, especially outside Europe [6] - New projects are anticipated to start in the second quarter, particularly in the Americas and the Middle East & India, with progress in the Defence and Energy sectors in the DACH region [4][6]