AAC Clyde Space (AAC) Q1 2025 earnings summary

Executive summary

• Net sales increased 3.6% year-over-year to SEK 74.0M for Q1 2025, with EBITDA positive at SEK 11.9M, supported by one-time earn-out removals and insurance payouts.

• EBIT improved to SEK -2.5M from SEK -3.8M year-over-year; net loss widened to SEK -10.2M due to higher financial expenses and exchange rate effects.

• Order backlog stands at SEK 482.4M, covering 80–84% of 2024 net sales, providing strong earnings visibility.

• Cash flow was negative for the quarter, reflecting normal business fluctuations and large project cycles.

• Strategic focus on Data & Services and Products & Missions, with operational restructuring and cost reductions underway.

Financial highlights

• Net sales: SEK 74.0M (up 3.6% year-over-year); EBITDA: SEK 11.9M, aided by non-recurring items.

• Gross margin rose to 69% from 56% year-over-year, mainly due to improved Mission segment performance.

• Net loss after tax: SEK -10.2M, with EPS at SEK -1.73.

• Cash flow from operating activities: SEK -27.3M; cash and cash equivalents: SEK 21.6M.

• Order backlog: SEK 482.4M (would be SEK 23M higher at constant FX rates).

Outlook and guidance

• Full-year guidance unchanged: double-digit net sales growth, positive EBITDA, and sustained positive operating cash flow.

• 80–84% of 2024 net sales already secured in backlog as of March 31, 2025.

• Large pipeline and new contracts expected to contribute to results in the latter part of the year.

• Key milestones include launching the first VIREON constellation satellite and securing major weather satellite contracts.

• Data & Services and Products & Missions segments to be reported from Q2 2025.