Quadient Q1 2025 sales at €258m, with strong performance in Digital and Lockers. FY 2025 guidance maintained

Core Insights - Quadient S.A. reported a consolidated revenue of €258 million for Q1 2025, reflecting a decrease of 1.1% on a reported basis and 2.5% organically compared to Q1 2024, with a positive scope effect from the acquisition of Package Concierge [5][7][46] - The company experienced strong organic growth in its Digital and Lockers solutions, with subscription-related revenue increasing by 11.1% for Digital and 12.7% for Lockers, indicating robust demand for these services [2][6][19] - The Mail segment faced challenges, with revenue declining by 7.9% due to a low point in the renewal cycle and a tough comparison base from the previous year [3][13][24] Financial Performance - Subscription-related revenue accounted for €193 million, representing 75% of total sales, and increased by 1.2% organically [6][19] - Non-recurring revenue saw a decline of 12.0% organically, primarily due to reduced hardware sales amid a challenging macroeconomic environment in the U.S. [6][13] - Annual recurring revenue (ARR) reached €237 million, marking a 9.6% organic growth compared to the end of FY 2024 [11] Geographic Performance - North America, contributing 59% of revenue, experienced a 2.4% organic decline, influenced by macroeconomic uncertainty and a strong comparison base from Q1 2024 [7][8] - Main European countries recorded a 2.8% organic decline, while the International segment saw a 2.0% organic decrease [8][45] Strategic Developments - The acquisition of Serensia, a French electronic invoicing platform, is expected to enhance Quadient's digital financial automation strategy and support its customers in transitioning to mandatory e-invoicing in France [4][12][38] - Quadient's digital automation platform received recognition in multiple analyst rankings, indicating its strong market position and growth potential [11][27][30] Future Outlook - The company anticipates continued uncertainty in Q2 but remains confident in delivering stronger performance in the second half of 2025, maintaining its full-year guidance for organic revenue and EBIT growth acceleration compared to 2024 [5][26][32] - A promising order pipeline across solutions is expected to support recovery in the Mail segment and further growth in Digital and Lockers [32][17]