Bechtle (ETR:BC8) used its 2026 analysts conference in Frankfurt to review a “difficult” 2025 marked by geopolitical and economic challenges, while emphasizing a sharp acceleration in the fourth quarter and laying out guidance for 2026 amid what management described as a potential “storage crisis” affecting memory components and hardware supply.
2025 results: slow start, “spectacular final spurt”
New CFO Christian Jehle, who joined on Jan. 1, 2026, said 2025 began modestly but ended with a strong finish. Business volume grew 8% for the year, which Jehle said was above guidance. Revenue rose 2%, with management pointing to accounting treatment and a growing software share as a factor behind the divergence between business volume and revenue.
By geography, management described Germany as a standout, saying Bechtle outperformed its home market. France was cited as challenging due to the economic situation there, while Benelux and other European markets were described as positive and supportive of the company’s internationalization strategy.
Profitability, cash flow, and workforce
On earnings, Jehle said EBIT and EBT declined year over year, which he said management was “not happy with.” He attributed the decline to cost increases only partly offset by top-line growth, internationalization effects, and product mix. He said performance improved later in the year as the company tightened cost management and pushed efficiency projects, particularly in the third and fourth quarters.
Operating cash flow was EUR 290 million. While Jehle acknowledged this was down year over year, he stressed improvements in cash conversion metrics, including a reduction in days sales outstanding to 36 days from 38 and an improvement in working capital as a share of business volume to 6% from 7%.
Headcount increased just under 4%, but Jehle said organic employee growth was -2%, with the net increase driven by acquisitions. He also emphasized Bechtle’s training focus, citing a 6% training ratio and more than 800 trainees.
Dividend proposal and shareholder policy
Bechtle proposed a dividend of EUR 0.70 per share. Jehle described the company’s dividend approach as centered on reliability and consistency, noting the dividend has not been reduced year over year in the period shown. He said the payout ratio was “almost 40%,” above the company’s rule-of-thumb minimum of one third.
Strategic developments: cloud partners, digital sovereignty, public sector, and M&A
CEO Thomas Olemotz highlighted several developments he said were strategically important, including new partner agreements with Deutsche Telekom and Arvato Systems to expand Bechtle’s multi-cloud portfolio. The Open Telekom Cloud was positioned as GDPR-compliant infrastructure based in German and Dutch data centers, supporting what management called customers’ digital sovereignty goals.
Olemotz also detailed the completion of Bechtle’s Bechtle Index of Sovereignty (BIoS), an assessment designed to measure the digital sovereignty of businesses and public sector organizations. He said the offering combines evaluation of key processes with advisory support and uses Bechtle-developed software to help customers measure and track sovereignty over time. The company is piloting the assessment in Germany, Austria, and Switzerland, with plans to roll it out to other European countries.
Public sector demand was repeatedly cited as a key driver, particularly in the fourth quarter. Olemotz pointed to new framework agreements with ProVitako covering nationwide provision of products from HPE’s network and server portfolio and related services. The agreements have an initial one-year term and may be extended up to three additional years. Management said the total contract volume is up to EUR 501 million, comprising approximately EUR 283 million for network solutions and EUR 218 million for server solutions.
On M&A, Olemotz highlighted:
- The acquisition of Portuguese IT systems integrator RIS 2048 (including subsidiary Evoware), adding IT consulting and services; RIS 2048 was said to have 165 employees and 2025 turnover of over EUR 50 million.
- The addition of Hungary-based EuroSolid, described as the largest SolidWorks partner in Hungary with 31 staff, strengthening Bechtle’s PLM business and position as the largest European partner of Dassault Systèmes SolidWorks.
2026 guidance and market risks: supply, pricing, and consolidation
Looking ahead, Olemotz cited continued uncertainty and warned that wars and energy price effects could weigh on customers. A central issue discussed in Q&A was a “storage crisis,” with management saying memory module prices had risen sharply in recent weeks, pushing up prices for PCs, servers, and storage modules.
Management said the situation could have both negative and positive implications. Risks include delivery capability constraints and pricing pressure for projects; potential positives include Bechtle’s close relationships with major manufacturers and its scale relative to smaller system integrators. Olemotz said he believed accelerated consolidation in the market was “highly probable,” and that customers’ choice of IT partner could increasingly depend on size and market significance.
For 2026, Bechtle guided for business volume growth of 5% to 10% and EBT growth of 0% to 5%. Olemotz said the company would review full-year guidance at shorter intervals than in the past given the wide range of possible scenarios.
In Q&A, management said order backlog was at an all-time high and described January as solid, with February expected to avoid a drop. Executives also said some customers had brought forward purchases in anticipation of price increases, though delivery times were only slightly longer in selected categories. On whether 2026 growth would be price- or volume-driven, Olemotz said he personally expected a larger share to come from price effects given shortages.
Management also addressed Microsoft licensing transitions, saying migration from enterprise agreements to CSP contracts went better than feared, though it was not accompanied by price increases due to elevated competition. Olemotz said the issue was no longer a major topic for the current year.
On internal IT investment, executives did not provide a specific figure, but described work on the company’s IT landscape and ERP strategy, upgrades tied to systems reaching end of maintenance, and investment in AI pilots aimed at productivity. Olemotz later characterized the spending as in the “upper single-digit” millions of euros, possibly slightly above that.
Finally, Olemotz discussed leadership changes linked to his planned departure at the end of 2026. The company said Konstantin Ebert’s executive board contract was extended to Dec. 31, 2029, and that Ebert is set to succeed Olemotz as CEO. (Olemotz also reiterated that he remains fully active as CEO through the end of his contract.) Jehle’s appointment as a full-time CFO was presented as part of that succession planning.
About Bechtle (ETR:BC8)
Bechtle AG provides information technology (IT) services primarily in Europe. The company operates through two segments, IT System House & Managed Services, and IT E-Commerce. The IT System House & Managed Services segment offers IT strategy consulting, hardware and software, project planning and implementation, system integration, IT, and training services for IT operation. The IT E-Commerce segment provides hardware and software products, and peripherals and accessories through a web shop.
