Cancom Stock: Plunge After Profit Warning

Cancom shares plummeted 16.5% to €21.50, erasing all yearly gains, after the Munich-based IT service provider slashed its 2025 revenue forecast from €1.7–1.85 billion to €1.65–1.75 billion. The adjusted EBITDA outlook worsened to €100–110 million, down from €115–130 million, as first-half results revealed a 4% revenue drop to €804 million and a 33% EBITDA collapse to €37 million. Analysts had expected €1.76 billion in revenue, exceeding even the revised upper limit, amplifying investor dismay. The downturn reflects broader sector struggles, with competitor Bechtle also losing nearly 5%, as public sector and mid-market clients curb spending amid Germany’s economic uncertainty and budget constraints.

Market Uncertainty Weighs Heavily

The profit warning followed earlier cautionary signals from rivals, with one analyst noting deteriorating profitability despite stable Q2 sales. Cancom attributed the slump to persistent market volatility and weak demand in its core German operations. The full quarterly report, due August 12, is expected to clarify the crisis’s severity. Investors now question whether this marks a temporary setback or a prolonged downturn for the TecDAX-listed firm.