Alfa Laval (ALFA) Q1 2025 earnings summary

Executive summary

• Net sales rose 10–10.5% year-over-year to SEK 16.5–16.47 billion, with organic growth closely matching headline growth.

• Adjusted EBITA increased 20% to SEK 2.9 billion, with margin improving to 17.7% from 16.3%.

• Order intake declined 8% year-over-year to SEK 16.8 billion, with a 3% organic decrease, mainly due to currency effects.

• Order book reached SEK 52–52.1 billion, up 9% year-over-year, covering over 9 months of sales.

• Service business accounted for a record 32% of invoicing, growing 13% year-over-year.

Financial highlights

• Gross profit margin rose to 36.8–37.5% from 34.9–36.5% year-over-year.

• Operating income rose 27% to SEK 2.8 billion; EPS reached SEK 4.82 per share, up from 4.07.

• Free cash flow before acquisitions was SEK 771 million; cash flow from operating activities was SEK 1.4 billion.

• Net debt/EBITDA reduced to 0.13–0.34.

• Return on capital employed improved to 24–24.2%.

Outlook and guidance

• Q2 2025 demand expected to remain at Q1 levels, except for Marine Division where order intake is expected to slow.

• FY 2025 CapEx estimated at SEK 2.5–3.0 billion; Q2 CapEx at SEK 0.8 billion.

• Currency impact on EBITA for FY 2025 estimated at SEK 200 million.

• Proposed dividend of SEK 8.50 per share, up from SEK 7.50.

• Internal cost control initiative launched, focusing on discretionary costs.