BTS Group's Disappointing 2025 Sets Stage for High-Stakes 2026 Rebound

STOCKHOLM, Sweden – February 20, 2026 – Global professional services firm BTS Group AB has painted a stark picture of its 2025 performance, labeling the year a "disappointment" after reporting significant declines in sales, profitability, and earnings per share. Despite the challenging results, the Stockholm-based company is signaling a sharp pivot, expressing confidence that a turnaround is already underway and forecasting a return to growth in 2026.

The firm's year-end report, released today, detailed a 25% drop in full-year EBITA (Earnings Before Interest, Taxes, and Amortization) to MSEK 274, down from MSEK 365 in 2024. Net sales for 2025 dipped to MSEK 2,703, with organic growth contracting by 1%. The impact on the bottom line was even more severe, with profit after tax falling to MSEK 133, a steep decline from the previous year's MSEK 191 when excluding a one-time reversal of earn-out provisions in 2024. In a move reflecting the financial strain, the board has proposed cutting the shareholder dividend to SEK 4.40 per share, down from SEK 6.10 in the prior year.

A Tale of Two Markets

The root of BTS's 2025 struggles lies primarily in its North American operations, which the company acknowledged suffered from weak revenue and inefficient sales. This regional weakness was a significant drag on the group's consolidated results. The fourth quarter alone saw group-wide EBITA fall by 37% to MSEK 86, highlighting the depth of the challenge.

However, CEO Jessica Skon noted in the earnings call that the year was a "mixed picture." While North America faltered, the firm’s Europe and Other Markets units delivered solid revenue growth. This divergence underscores that BTS's issues were not solely the result of a contracting global market but were exacerbated by specific internal and regional challenges. The professional services industry itself is navigating a complex landscape; while some major players like Accenture have posted robust growth fueled by digital and AI transformation, others have seen more muted results or regional downturns, such as Deloitte's revenue drop in Australia. BTS's performance places it among those who found 2025 to be a difficult year, suggesting that its internal issues compounded broader market pressures.

Betting on an AI-Powered Turnaround

Despite the bleak 2025 figures, BTS management is projecting a decisive rebound. The company's leadership is framing the final quarter of 2025 as the low point and the start of a new chapter. "We expect that Q4 2025 marked a turning point, bringing an end to the quarter-on-quarter decline in results and positioning BTS for renewed momentum into 2026,” CEO Jessica Skon stated in the official report.

The foundation of this optimism rests on a multi-pronged turnaround strategy. First and foremost is a major overhaul in North America, where new leadership has been installed to implement a new profitability and growth plan. The company anticipates this crucial market will return to organic revenue growth as early as the first quarter of 2026, with profit improvements materializing ahead of schedule.

Secondly, BTS is leaning heavily into Artificial Intelligence as both a service offering and an internal efficiency driver. The firm reports a surge in bookings for its AI-based technologies and consulting services, a trend accelerated by its 2024 acquisition of Wonderway, an AI technology platform for conversational practice. This strategic focus on AI is expected to not only generate new revenue streams but also deliver further cost reductions and productivity gains throughout 2026. This aligns with a broader industry trend where nearly 60% of professional services leaders have identified AI investment as a high priority.

Financial Nuances and Shareholder Outlook

Buried within the disappointing headline numbers was a silver lining from the United States. Changes in US tax law, specifically the "One Big Beautiful Bill Act" signed in mid-2025, provided a positive impact of approximately MSEK 14 to the company's income tax. The legislation made several business-friendly provisions from the 2017 Tax Cuts and Jobs Act permanent, including 100% bonus depreciation and expensing for US-based research. This suggests the tax benefit is not a one-time event but an ongoing advantage for BTS's North American operations.

The proposed dividend cut, while unwelcome news for income-focused shareholders, is being positioned as a prudent move to conserve capital. By retaining more cash, BTS can fund its critical turnaround initiatives, particularly the investments in AI and the restructuring of its North American unit. Despite the reduction, the company maintains a long history of annual dividend payments, and this conservative step appears aimed at ensuring the long-term health and growth potential of the business.

Initial market reaction has been cautiously optimistic. The company's stock reportedly climbed following the report's release, suggesting investors may be willing to look past the poor 2025 results and buy into the forward-looking recovery narrative. The coming year will be a critical test for BTS's leadership as they work to prove that 2025 was an anomaly and that the strategic bets on a North American revival and AI-driven innovation can restore the company to a path of profitable growth.