Computacenter’s 2025: big topline growth, record backlog, and a North American power play
Computacenter has posted a strong set of 2025 numbers. The engine was North America, where enterprise and hyperscale demand surged, particularly for AI-centric infrastructure. The UK returned to growth, Germany steadied in H2, and France dragged. Crucially, the Group exits the year with a record product order backlog of £7.1bn, up 200.3% in constant currency – a clear indicator of demand sitting in the pipeline for 2026.
Two quick definitions before we dive in:
- Gross invoiced income (GII): the total value of customer invoices before IFRS “agent” adjustments – a useful indicator of volume and working capital.
- Adjusted results: exclude items like acquired intangible amortisation and exceptional charges, to show underlying performance. Basis points (bps) are hundredths of a percent (100 bps = 1%).
Headline numbers investors will care about
| Metric (2025) | Result | YoY change |
|---|---|---|
| Revenue | £9,193.9m | +32.0% |
| Gross invoiced income | £12,988.3m | +31.0% |
| Gross profit | £1,144.1m | +10.5% |
| Gross margin | 12.4% | -242 bps |
| Adjusted operating profit | £274.7m | +11.3% |
| Adjusted profit before tax | £272.0m | +7.1% |
| Adjusted diluted EPS | 175.1p | +9.5% |
| Total dividend | 74.6p | +5.5% |
| Adjusted net funds | £606.0m | +25.7% |
| Product order backlog (at 31 Dec) | £7.1bn | +200.3% (cc) |
On a statutory basis, operating profit was £241.2m (+1.4%) and diluted EPS was 145.5p (-4.8%), hit by a £20.2m impairment in Western Europe (mainly France) and £3.2m aborted deal costs.
North America: where the action is
This is the standout. North American revenue jumped to £4,860.0m (+63.6%; +69.5% in constant currency) and adjusted operating profit rose to £129.6m (+87.8% in constant currency). The region now contributes 39% of Group adjusted operating profit (before central costs).
- Technology Sourcing volumes were driven by AI data centre builds for hyperscale customers and robust spend across healthcare, financial services, retail and state government.
- Services revenue grew 18.6% in constant currency, with Professional Services up 20.4% and Managed Services up 9.5%; Services gross margin rose 593 bps.
- North American product backlog ballooned to £5,042.3m (+231.9% in constant currency).
Why margin down at Group level? High-volume hyperscale hardware is lower-margin by nature, so mix diluted the overall gross margin. That is a trade many investors will accept when it’s paired with strong profit growth and outsized pipeline.
UK and Germany: steadier hands; France the weak spot
United Kingdom: back to growth
- Revenue £1,419.2m (+22.5%); adjusted operating profit £42.3m (+3.9%).
- Technology Sourcing GII +32.7% as AI-related infrastructure and Windows 10 refresh activity lifted volumes; Services +5.6% with Professional Services +27.6% offsetting a -6.2% Managed Services decline.
- Product backlog £1,389.0m, up 225.5% – a notable positive into 2026.
Germany: second-half improvement
- Revenue £2,109.3m (+6.2% reported; +4.6% cc); adjusted operating profit £157.3m (flat reported; -1.8% cc).
- Public sector spend recovered later in the year; backlog £360.3m (+31.8% cc).
Western Europe (France, Benelux, Switzerland): disappointing
- Revenue £779.2m (-6.2% cc); adjusted operating loss £7.8m.
- France struggled after political change and weak hardware demand; the Group booked a £20.2m impairment (including £11.9m goodwill for Western Europe) and is refocusing on corporate clients and legacy cost reduction.
Services: Professional strength; Managed stabilising
Total Services revenue grew 2.9% in constant currency to £1,690.8m, split evenly between Professional Services and Managed Services.
- Professional Services: +8.8% (cc) to £847.2m, led by the UK and North America; Germany was stable given slower public sector activity.
- Managed Services: -2.4% (cc) to £843.6m, as UK exited some non-core data centre hosting; pipeline improved notably, with wins in defence, retail and professional services.
- Group Services gross margin edged up 14 bps – sensible cost discipline despite growth investments.
Post year-end, Computacenter acquired AgreeYa for up to $120m, adding scale in US Professional Services and lifting annualised North American Professional Services revenue to over $350m. AgreeYa reported 2025 revenue of approximately $120m with adjusted EBITDA of approximately $14m.
Cash, balance sheet and dividend: still a fortress
- Net cash inflow from operating activities: £293.6m (down from £417.1m, as working capital normalised).
- Adjusted net funds: £606.0m; net funds including leases: £426.2m.
- Total dividend raised 5.5% to 74.6p, with stated policy of 2-2.5x cover based on adjusted diluted EPS.
Inventory rose to £482.8m, reflecting project timing and a temporary North American facility supporting a major data centre programme (holding £137.7m at year-end). The balance sheet comfortably supports organic investment and targeted M&A.
Backlog and outlook: visibility up, watch the bottlenecks
Computacenter exits 2025 with a record £7.1bn product order backlog, up across all geographies. Management expects further strategic and financial progress in 2026 on an organic basis, enhanced by AgreeYa, while noting macro uncertainty and current hardware component shortages in the industry.
2026 technical guidance
- Central costs (including Group-wide investments): £60-65m.
- Adjusted effective tax rate: 29.5%-31.5% (2025 adjusted ETR was 30.8%).
- Capex: c.£85m, including a new automated Integration Center in Atlanta and ERP design work.
- Dividend cover: 2-2.5x adjusted diluted EPS.
What this means and why it matters
Positives I like
- Demand signal is loud: a £7.1bn backlog, with £5.0bn in North America alone, suggests 2026 has a healthy runway.
- Mix shift to AI infrastructure: lower unit margins but attractive scale and operating leverage – and Services attach is improving.
- Cash and balance sheet: £606.0m adjusted net funds gives room to invest and return cash; dividend growth continues.
- Record H2: adjusted operating profit hit a new high in the second half, up 14.6% in constant currency.
Areas to keep an eye on
- Margin dilution: Group gross margin fell 242 bps due to hyperscale volume. The key is whether operating leverage and Services growth keep converting profit.
- France turnaround: 2025 impairments and a Western Europe loss underline the task. Execution on cost reset and private sector mix is critical.
- Supply constraints: management flags component shortages. Backlog conversion timing and working capital discipline will matter.
- Tax rate drift: adjusted ETR rose to 30.8% due to France; guided range remains elevated.
My take for retail investors
This is a robust update from Computacenter. The strategy is working where it counts: winning big, repeatable customers and scaling delivery in the highest-growth market, North America. Yes, hyperscale hardware compresses gross margin, but the company is turning sheer volume into higher absolute profits, while building Professional Services to lift quality of earnings over time – and AgreeYa adds more muscle there.
The UK recovery and Germany’s second-half traction are reassuring, though France will likely stay a headwind for a while. With a record backlog, strong cash, and ongoing investment in systems and integration centres, the set-up into 2026 looks constructive. For me, the swing factors are backlog conversion, Services growth (and margin), and visible remediation in Western Europe. If those land well, the share’s long-term compounding case through scale and customer depth remains intact.
