Alleima (ALLEI) Q1 2025 earnings summary

Executive summary

• Achieved solid financial performance in Q1 2025, with organic revenue growth of 8% and adjusted EBIT margin of 10.5%, supported by broad-based segment growth and strong operational leverage.

• Ongoing growth initiatives in less cyclical, higher-margin segments, expanded geographical footprint, and continued focus on sustainability and safety, including over 80% recycled steel usage and CO₂ emissions reduced by 3% year-over-year.

• Solid backlog and positive product mix maintained, with strong performance in key segments like Nuclear, Medical, and Oil & Gas.

• No significant impact from global trade barriers or tariffs observed in Q1; main risk identified is potential negative impact on global demand and economic environment.

• Launched on-site tubing solution for the hydrogen market, supporting over 70 hydrogen refueling station projects in Europe and Canada.

Financial highlights

• Revenues reached SEK 5,150 million, up 8% organically year-over-year, with adjusted EBIT of SEK 540 million (margin 10.5%) and adjusted EPS (diluted) of 1.65.

• Free operating cash flow was SEK 46 million, down from SEK 159 million year-over-year, mainly due to higher production volumes, inventory build-up, and growth investments.

• Net financial items positive at SEK 13 million, mainly due to revaluation of financial instruments and strong cash position.

• Net debt stood at SEK -414 million, with net debt/equity at -0.02x and net debt/adjusted EBITDA at -0.14x, indicating a net cash position.

• Return on capital employed (ROCE) excluding cash at 11.9%, up from 7.1% last year.

Outlook and guidance

• Economic environment remains cautious with increased uncertainty from global trade policy changes and macroeconomic factors.

• Backlog remains solid in key segments, with good near-term delivery visibility and product mix expected to remain similar in Q2.

• Currency and metal price headwinds expected in Q2, with estimated negative EBIT impact of SEK 130 million and SEK 150 million, respectively.

• CapEx guidance for full year maintained at SEK 1.2 billion, with higher spending expected in Q3 and Q4.

• Normalized tax rate projected at 23–25% for FY 2025.