Another weak quarter for the consulting firms with negative growth figures and lower margins

The publicly listed consulting firms in Sweden, Finland and Norway continue to face headwinds in the first quarter of the year. According to Cinode’s summary of the Q1 reports, the majority of the companies are showing negative growth and declining operating margins.

– Two-thirds of the companies report weaker margins compared to the same period last year. IT consultants have had the toughest time, while players in energy, defense, cybersecurity, and parts of the industrial sector are still experiencing strong demand, says Mattias Loxi, co-founder of Cinode – the Nordic region’s leading SaaS platform for consulting companies.

The workforce has decreased at seven out of ten companies since the beginning of the year, reflecting the continued weakness in the market. Operating margins have also weakened, with an average EBIT margin of 7.3 percent—down from 8.0 percent in the same quarter of 2024. The highest margins were reported by Exsitec, Bouvet, and Avensia.

Growth is also declining. On average, the companies have contracted by 1.7 percent, compared to -0.1 percent a year ago. However, Avensia, B3 Consulting, and defense-focused Combitech are positive exceptions, showing the strongest growth.

– Consulting firms continue to streamline and adjust their costs in response to market conditions. At the same time, we are seeing a clear connection this year between growth and operating margins—something that has been weaker in the past. This suggests that companies that are growing are also managing to maintain or even improve their profitability, says Mattias Loxi.