Addtech (ADDT) Q1 24/25 earnings summary

Executive summary

• Net sales rose 7% year-over-year to SEK 5,438 million, with 2% organic and 5% acquired growth, and stable customer activity across segments.

• EBITA increased 19% to SEK 831 million, with a record margin of 15.3% (up from 13.7%).

• Profit after tax grew 27% to SEK 495 million, and EPS reached SEK 1.80 (up from 1.40).

• Seven acquisitions completed or announced, adding SEK 855/860 million in annual sales and 174 employees, strengthening positions in automation and Europe.

• Order backlog remains well-filled and of good quality, supporting a positive outlook for upcoming quarters.

Financial highlights

• EBITA margin reached a record 15.3% in Q1, up from 13.7% last year.

• Operating profit rose 20% to SEK 713 million, with an operating margin of 13.1% (up from 11.7%).

• Operating cash flow improved, with cash conversion and working capital efficiency strengthening.

• Equity ratio at 39%, leverage at 1.4, and gearing at 0.7.

• Return on working capital (P/WC) reached 71% (up from 66%).

Outlook and guidance

• Management expects a favourable outlook for the coming quarters, with stable customer activity and well-filled order books.

• Margins are expected to persist around current rolling 12-month levels, with gradual improvement through the year.

• International expansion and acquisition strategy expected to continue driving growth.

• Economic uncertainty persists, but the diversified portfolio and strategic positions support long-term profitable growth.

• Process Technology growth in Q1 was boosted by one-off deliveries; normalization is expected in coming quarters.