Addnode Group (ANOD) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales dropped 39% to SEK 1,461m–1.5bn, mainly due to Autodesk model changes and reclassification of third-party agreements, but recurring revenue and gross margin improved, and operations remained diversified across Europe and the U.S., except for continued weakness in Germany, especially in the automotive sector.

• Three acquisitions completed: Congere (defense), Railit (railway SaaS), and pcSKOG/Pcskog (forest management SaaS), all consolidated into Process Management, supporting long-term growth strategy.

• EBITA/EBITDA was SEK 217m (down from SEK 253m); adjusted for SEK 24–25m restructuring costs, EBITA/EBITDA was SEK 241m, margin 16.5%.

• Earnings per share were SEK 0.67, a 25–26% decrease year-over-year.

• Business model transition to higher-margin recurring revenue is underway, impacting reported net sales but improving margins.

Financial highlights

• Net sales for Q1 were SEK 1,461m–1.5bn, down 39% year-over-year due to Autodesk model changes; organic growth was about 3% on a comparable basis.

• Gross profit was SEK 1,122m, up 2% year-over-year; gross margin improved to 76.8%.

• Cash flow from operations was SEK 203m, down from SEK 381m last year, mainly due to working capital changes and payment term transitions.

• Net debt stood at SEK 936m; cash position at SEK 680m, with SEK 1–1.05bn in unutilized credit facilities.

• Equity/assets ratio was 31%, and return on capital employed was 17.3%.

Outlook and guidance

• Cost savings in the PLM division to yield SEK 45m annual savings, with effects starting in Q2 and ramping up through the year.

• Recurring revenue remains strong at 63% of Q1 2025 net sales, providing resilience.

• Cash flow from operations expected to normalize in 2026 as payment term transitions complete.

• Demand for business-critical digital solutions remains solid, especially in Europe and the USA, with stable outlook except for Germany.

• No formal forecast issued; long-term outlook remains positive with focus on organic and acquisition-driven growth.