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Third party research

B3 Consulting Group: Recovery still awaits - ABG

B3 Consulting Group

This is a third party research report and does not necessarily reflect our views or values

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We lower '24e-'26e adj. EBITA by 35-1%
Potential for utilisation improvement in H2'24
'24e-'25e EV/EBITA of 12-6x


It's still tough out there

Q1 was undoubtedly a tough quarter for B3, and seemingly also for other IT consulting businesses. B3's sales and EBITA declined by 12% and 57% y-o-y, respectively. Compared to FactSet consensus, B3's sales were 6% below expectations while adj. EBITA missed by 18%. Utilisation continued to decline sequentially in Q1, but was supported by a stronger March. We would, however, need a few quarters' worth of data from both B3 and macroeconomic indicators to make judgment on whether the utilisation rates have stabilised.
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