Proact IT Group AB (PACT) AI Stock Analysis

• Market Cap: kr2.63B
• Dividend Yield: 2.13%
• Average Volume (3M): 57.72K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.84
• Revenue Growth: -4.36%
• EPS Growth: -31.55%
• Country: SE
• Employees: 1,181
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.55
• Shares Outstanding: 27,101,658
• 10 Day Avg. Volume: 39,441
• 30 Day Avg. Volume: 57,722
• PEG Ratio: -0.57
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 8.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.68
• Revenue Forecast (FY): kr4.90B

• Rating: 62 Neutral
• Price Target: kr107.00 ▼(-3.78% Downside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is driven primarily by solid fundamentals and cash flow strength with improved balance-sheet leverage, partially offset by near-term revenue/margin pressure and a weaker technical trend (below major moving averages with negative MACD). Valuation is reasonable but not particularly compelling given the recent earnings decline.

Positive Factors

Cash generation

Proact’s strong TTM operating cash flow (378.2M) and growing free cash flow (346.8M, +6.8%), with FCF ~91% of net income, indicate durable internal funding ability. This cash conversion supports investment, dividends, debt reduction and cushions the business through cyclical softness over months.

Improved balance sheet leverage

Leverage has meaningfully improved to a TTM debt-to-equity ~0.55 versus prior years, leaving equity substantial relative to assets. Lower leverage enhances financial flexibility for M&A, investment or refinancing, reducing structural solvency risk and supporting resilience across a multi-month horizon.

Recurring managed-services model

Recurring managed services and support contracts create predictable revenue streams and stronger customer retention. That subscription-like mix enables higher lifetime value, steadier cash flow and opportunities to upsell higher-margin services, bolstering durable revenue visibility and margins over time.

Negative Factors

Revenue and margin pressure

Recent declines in revenue and compressed gross/operating/net margins, with net income down materially, reflect weakening operating leverage. If these trends persist they will constrain free cash flow growth, reduce reinvestment capacity and depress returns on equity, harming multi-month profitability sustainability.

Modest operating cash flow coverage of debt

Although free cash flow is strong, operating cash flow covered only ~18% of total debt in the TTM window. That limited coverage increases refinancing and liquidity sensitivity if profitability slides or rates rise, constraining capital allocation flexibility over the medium term.

Dependence on third-party resale

A meaningful portion of revenue comes from reselling third-party hardware and software, which limits pricing power and exposes gross margins to vendor pricing, supply and margin pressure. This dependency can cap sustainable margin expansion absent a shift to higher proprietary or services-led revenue mix.

Proact IT Group AB Business Overview & Revenue Model

Company Description

Proact IT Group AB (publ), together with its subsidiaries, provides data and information management services with focus on cloud services and data center solutions. It offers data strategy advisory services, including strategic consultancy and architecture services; storage data, archive, and database management services; connect data services, such as network, edge computing, and cloud based solutions; backup, disaster recovery, security, and support services to secure and protest data; and artificial intelligence, analytic, automation, and workspace related services. The company also provides professional services, such as strategic consulting, project management, design, migration, implementation, training, health check, maintenance, and assessment services. It serves retail and services, public, telecom, manufacturing, oil and energy, banking and finance, media, and other sectors. The company operates in Sweden, Norway, Finland, Denmark, the United Kingdom, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia, the Netherlands, Belgium, Spain, Germany, and the United States. Proact IT Group AB (publ) was incorporated in 1994 and is headquartered in Kista, Sweden.

How the Company Makes Money

Proact IT Group AB generates revenue primarily through its IT services and solutions offerings, which include managed cloud services, data management solutions, and hardware sales. Key revenue streams include recurring revenue from subscription-based services, professional consulting fees, and project-based contracts for system integration and implementation. The company also benefits from strategic partnerships with major technology providers, enabling it to deliver comprehensive solutions that enhance its offerings. Additionally, the growing demand for cloud computing and data management solutions in various industries contributes significantly to its earnings.

Proact IT Group AB Financial Statement Overview

Summary

Financials are stable with strong cash generation (TTM operating cash flow 378.2M; free cash flow 346.8M, +6.8%) and improved leverage (TTM debt-to-equity ~0.55). However, recent performance has weakened: TTM revenue declined (-1.3%), margins compressed, and net income fell materially (122.7M vs 219.9M), pressuring returns (ROE TTM ~14.0% vs ~18.8% in 2024).

Income Statement

Profitability is positive but trending weaker in the most recent period. TTM (Trailing-Twelve-Months) revenue dipped (-1.3%) and margins compressed versus 2024 (gross margin ~23.9% vs ~24.8%; operating profit margin ~5.4% vs ~6.3%; net margin ~3.3% vs ~4.5%), driving a notable decline in net income (122.7M vs 219.9M). Offsetting this, the business has demonstrated multi-year revenue expansion since 2021 and maintains consistent positive operating profit, but near-term earnings pressure and low net margin keep the score mid-range.

Balance Sheet

Leverage appears manageable and improved versus prior years. TTM (Trailing-Twelve-Months) debt-to-equity is ~0.55 (better than 2021’s ~1.02 and 2022’s ~0.80), with equity still substantial relative to the asset base. Returns on equity remain healthy (TTM ~14.0%), though down from 2024 (~18.8%), reflecting softer profitability. Overall balance sheet risk looks moderate, with the main watch item being the recent step-down in returns.

Cash Flow

Cash generation is a clear strength. TTM (Trailing-Twelve-Months) operating cash flow is solid (378.2M) and free cash flow is strong (346.8M) with growth (+6.8%), and free cash flow remains well-supported relative to reported earnings (free cash flow is ~91% of net income). The key weakness is that operating cash flow covers only a modest portion of total debt in the TTM period (~18%), down from recent years, which modestly increases refinancing/repayment sensitivity if profitability stays pressured.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.68B	4.86B	4.85B	4.76B	3.52B
Gross Profit	1.11B	1.21B	1.09B	1.05B	811.43M
EBITDA	383.10M	520.49M	484.63M	478.87M	348.87M
Net Income	122.70M	219.88M	172.65M	191.26M	117.13M
Balance Sheet
Total Assets	4.42B	4.48B	4.04B	4.24B	3.39B
Cash, Cash Equivalents and Short-Term Investments	458.00M	813.52M	547.90M	505.68M	463.93M
Total Debt	478.70M	483.46M	468.27M	731.24M	724.10M
Total Liabilities	3.38B	3.30B	3.04B	3.32B	2.68B
Stockholders Equity	1.04B	1.17B	1.01B	919.53M	710.61M
Cash Flow
Free Cash Flow	334.20M	492.85M	486.70M	413.25M	253.82M
Operating Cash Flow	374.40M	524.07M	532.04M	454.26M	303.57M
Investing Cash Flow	-337.50M	-26.51M	-51.93M	-194.62M	-404.62M
Financing Cash Flow	-356.70M	-247.15M	-430.06M	-247.39M	74.71M

Proact IT Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 111.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PACT, the sentiment is Neutral. The current price of 111.2 is above the 20-day moving average (MA) of 100.50, above the 50-day MA of 106.21, and above the 200-day MA of 102.32, indicating a neutral trend. The MACD of -1.45 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 38.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:PACT.

Proact IT Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXS	65 Neutral	kr1.57B	18.30	15.90%	1.13%	10.92%	-2.56%
PACT	62 Neutral	kr2.63B	21.21	14.35%	2.13%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOF.B	59 Neutral	kr1.10B	16.45	27.44%	6.29%	4.00%	-12.08%
KNOW	58 Neutral	kr3.04B	-10.52	2.38%	2.03%	-9.85%	-38.24%
DUST	50 Neutral	kr2.05B	-0.43	―	―	-5.00%	-1757.14%
B3	43 Neutral	kr326.20M	29.95	1.19%	―	13.21%	-97.19%

Proact IT Group AB Corporate Events

Proact IT Tightens Profit Focus Amid Revenue Dip and Nordic Cloud Expansion

Proact IT Group AB reported a 3.8% decline in full-year 2025 revenue to SEK 4.68 billion, with adjusted EBITA down 9.9% and margins softening, while the fourth quarter showed a modest improvement in profitability despite lower sales. New cloud service agreements grew slightly over the year, recurring revenue eased, and earnings were pressured by one-off restructuring costs of about SEK 54 million, even as Proact strengthened its Nordic position via the Consular ApS acquisition, refreshed key management roles, secured VMware Cloud Service Provider status, and proposed a higher dividend.

The company’s focus on profitable growth, cost-efficiency measures, and expansion of its cloud and infrastructure capabilities suggest a strategic repositioning toward higher-margin recurring services in a challenging market. For shareholders and customers, the combination of solid operational cash flow, a raised dividend, and enhanced vendor partnerships indicates continued confidence in Proact’s long-term competitiveness, despite near-term profit compression and softer top-line development.

The most recent analyst rating on (SE:PACT) stock is a Buy with a SEK113.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact Schedules Webcast for 2025 Year-End Report Release

Proact IT Group AB has announced that it will publish its 2025 year-end report on 10 February 2026 and will host an English-language webcast presentation the same morning for investors, analysts and media, led by President and CEO Magnus Lönn and interim CFO Åsa Regen Jansson. The live event, which will include a Q&A session, and a recorded version of the presentation will be made available on the company’s website, underscoring Proact’s efforts to maintain transparent communication with the market ahead of its financial disclosures.

The most recent analyst rating on (SE:PACT) stock is a Buy with a SEK125.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group AB Finalizes Cost-Efficiency Program

Proact IT Group AB has announced the completion of its cost-efficiency program, which was initiated earlier this year and will conclude in the fourth quarter of 2025. This program, which involves staff reductions and management changes, will incur one-off costs of approximately SEK 55 million. The initiative aims to enhance operational efficiency and create conditions for profitable growth, particularly within Business Unit Central and Business Unit West. Meanwhile, Business Unit Nordic & Baltics and Business Unit UK have maintained strong performance throughout the year.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group AB Completes Acquisition of Consular ApS

Proact IT Group AB has finalized the acquisition of Danish IT company Consular ApS, enhancing its position in the Nordic market for infrastructure and cloud solutions. This acquisition is expected to bolster Proact’s Business Unit Nordic & Baltics through Consular’s expertise and market presence, contributing to continued growth and strengthening Proact’s offerings in data infrastructure and IT services.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.

Proact IT Group Appoints Åsa Regen Jansson as Interim CFO

Proact IT Group AB has appointed Åsa Regen Jansson as interim CFO, succeeding Noora Jayasekara, who is leaving to pursue new opportunities. Åsa brings significant experience, having previously served as interim CFO at Proact and as CFO at Braathens Regional Airlines, ensuring continuity during this transition period.

The most recent analyst rating on (SE:PACT) stock is a Hold with a SEK112.00 price target. To see the full list of analyst forecasts on Proact IT Group AB stock, see the SE:PACT Stock Forecast page.