Marco Santos is currently experiencing a lot of changes. Last July, the 49-year-old joined GFT Technologies as co-CEO alongside Marika Lulay, whose contract expired at the end of the year. Since the beginning of the year, Santos has been the sole CEO of the SDax company which is headquartered in Stuttgart. The Brazilian conducted the conversation with Börsen-Zeitung in English; by his own admission, he is „still at the very beginning“ when it comes to learning German.

As with many companies in the technology and software sector, the focus at GFT Technologies is currently clearly on applications with artificial intelligence. „Everyone is working on AI solutions,“ says Santos. In order to stand out, an agile organisation that can act quickly is therefore crucial: „We have to be faster than the competition when it comes to implementation“.

GFT Technologies wants to become „completely AI-centred“ by 2029. This means utilising the operational benefits of AI both internally and in the solutions offered to customers. The company aims to increase its revenue to around 1.5 billion euros by 2029, with 9.5% targeted for earnings before interest and taxes (EBIT) adjusted for special items. In the 2024 financial year, sales increased by 10% to 871 million euros, while EBIT adjusted for special items rose by 6% to 77 million euros.

In addition to setting medium-term financial targets, Santos has also made structural changes. Adaptability is particularly important to him: „If there are exciting technological breakthroughs, we must immediately develop an idea of how we can utilise them for ourselves", he says. To this end, Santos has set up a Group Technology Office (GTO), which brings together the Chief Technology Officers from the various business regions. „They monitor developments in generative artificial intelligence, language models and many other topics,“ explains Santos. The GTO reports directly to the CEO and also keeps the company's management bodies up to date.

One promising product from GFT Technologies is „AI Impact“, which is based on generative AI and is designed to help speed up the software development process. The offering includes automated prompts for code analyses, vulnerability checks and programme documentation.

For Santos, a key to growth lies in providing customers with concrete AI use cases. „Everyone is talking about AI. But the idea of how it can actually generate added business value is often still missing. That is one of our strengths,“ says the CEO.

The Stuttgart-based company's shareholders are probably eagerly awaiting growth impetus. At the beginning of 2022, the share price was still above 40 euros, but was recently hovering around 22 euros. According to the financial data service provider Bloomberg, six analysts currently recommend GFT Technologies shares as a buy; there are no hold or sell recommendations. The analysts' average target price is 33.25 euros.

For the current year, the Stuttgart-based company has advised investors to remain cautious: Although sales are set to increase further in 2025, profitability is expected to fall. The CEO justifies the short-term burdens with higher investments, for example in the Group Technology Office, as well as measures to increase efficiency. AI should also help here. „Artificial intelligence can help to ensure that more tasks are completed without me having to assign more employees,“ explains Santos.

In overarching functions such as finance, marketing or HR, AI-supported agents are to streamline processes. Overall, the current workforce of 12,000 employees is not set to shrink, emphasises Santos - if anything, he expects the headcount to increase. However, care must be taken to locate growth in the right areas.

GFT Technologies expects profitability to improve again from 2026 onwards. Average organic growth over the period 2024 to 2029 is expected to be around 8% annually. For 2025, GFT currently anticipates revenue growth of 7% to around 930 million euros. Adjusted EBIT is expected to amount to 68 million euros, which would represent a year-on-year decline of 12% and a margin of just over 7%.

Inorganic growth is also expected to contribute to the sales target for 2029. Around 15% of the targeted 1.5 billion euros by then is to be generated from acquisitions and previous investments in assets. Last year, GFT strengthened its position in South America with its largest acquisition to date. Santos knows the market well; he was already responsible for the Brazilian and Latin American markets for GFT and, as CEO of GFT Americas, has been in charge of business in North and Latin America since 2023.

Santos describes the acquisition of Sophos Solutions, which is headquartered in Colombia and valued at 95 million dollars, as a milestone for the company. „It was the largest sum invested, but also the largest integration task to date.," he says. Around 1,600 employees joined GFT Technologies, while the Sophos business comprised subsidiaries in various countries. According to Santos, the integration into the corporate structures has now been completed a year after the takeover.

Through Sophos, GFT Technologies has further expanded its core business with financial service providers; the acquired unit specialises in IT services for banks. Santos nevertheless intends to maintain the goal set under his predecessor Lulay of diversifying GFT Technologies' revenue pillars more strongly between banks, industrial companies and insurance companies. Most recently, banks accounted for 75% of revenue, insurance companies for 15% and industrial companies for 10%. „In five years' time, sales will be more spread out. However, the majority of the business will still be in the banking sector,“ says Santos.

According to the CEO, companies whose products are highly specialised and have a high level of added value will be considered for further acquisitions. According to Santos, competition for attractive takeover targets is particularly fierce in North America: „The multiples there are higher than in Latin America and Europe.“

GFT Technologies intends to pay for any M&A investments from free cash flow, and loans can be utilised to cushion peaks. However, net debt should not exceed twice earnings before interest, taxes, depreciation and amortisation (EBITDA). According to GFT, free cash flow is currently around 5 to 6% of annual revenue. Based on the revenue target expected for 2025, this would leave just under 50 million euros per year available for acquisitions.

Marco Santos started as Country Manager at GFT Brazil in 2011 and was appointed to the Executive Board of the GFT Group in 2020. In 2023, he was promoted to CEO of GFT Americas and led the business in North and Latin America. From July 2024, he initially acted as Co-CEO together with Marika Lulay, and has been Global CEO since the beginning of the year. Before joining GFT Technologies, Santos worked for Tata Consultancy Services, Oracle, CPM Capgemini and Organic Inc.