Managed Services drive record performance

Zalaris reported record FY25 revenue, with growth of 11.7% and an adjusted EBIT increase of 31.5% y-o-y (margin 12.9%). Managed Services (MS) continues to be the driver of growth and the business saw a pick-up in new business in Q425. Zalaris Consulting (ZC) performance was disappointing, with cost overruns in the APAC region contributing to a second loss-making quarter. Management continues to target double-digit revenue growth and margins of 13–15% and is increasingly embedding AI in its operations to improve productivity. Due to the weaker performance in ZC, we have taken a more conservative approach to our FY26 forecasts.