BE Group (BEGR) Q1 2025 earnings summary

Executive summary

• Net sales fell 15% year-over-year to SEK 1,105 M, driven by lower demand in the industrial segment, lower material prices, and the closure of Baltic operations.

• Underlying operating result dropped to SEK -2 M from SEK 42 M, with reported EBIT at SEK -12 M, including SEK -10 M in inventory losses.

• Result after tax was SEK -14 M, and earnings per share declined to SEK -1.08.

• Cash flow from operating activities was negative at SEK -37 M, mainly due to lower operating results and increased accounts receivable.

• A rationalization program is being developed, targeting SEK 20 M in cost savings for 2025 and SEK 50 M annually from 2026.

Financial highlights

• Gross profit decreased to SEK 115 M (from SEK 165 M), with gross margin at 10.4% (down from 12.6%).

• Operating margin was -1.1% (0.3% last year); underlying operating margin was -0.2% (3.2%).

• Net debt (excl. IFRS 16) increased to SEK 380 M (from SEK 271 M), and net debt/equity ratio rose to 28.1%.

• Equity at period end was SEK 1,350 M, down from SEK 1,439 M.

• Working capital tied-up increased to 14.4% (from 13.1%).

Outlook and guidance

• Demand showed gradual improvement during the quarter; short-term market conditions expected to be relatively favorable.

• Steel spot prices have risen into Q2, with high capacity utilization among producers expected into Q3.

• Significant uncertainty remains due to global macroeconomic and geopolitical factors, making full-year 2025 outlook difficult to quantify.

• Rationalization program aims to lower costs by SEK 20 M in 2025 and SEK 50 M annually from 2026.