Beijer Ref (BEIJ) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 16% net sales growth to SEK 8,898 million, with 4% organic growth and 11% from acquisitions.

• EPS rose 20% to SEK 0.94, reflecting strong profitability and lower financial costs.

• EBITA increased 13% to SEK 832 million, with a margin of 9.4%, slightly diluted by North American acquisitions.

• Operating cash flow was SEK 445 million, stable despite seasonal working capital build-up.

• Acquisitions of Cool4U (Hungary) and Atomic Refrigerants (Australia) completed, strengthening market position.

Financial highlights

• Net profit reached SEK 482 million, up 18% year-over-year.

• EBITA margin was 9.4% (9.5% prior year); return on operating capital (R12) was 10.9%.

• Net financial items improved to SEK -131 million from -141 million.

• Equity ratio at quarter-end was 49.1%, down from 54.7% a year earlier.

• Net debt increased to SEK 9,807 million, mainly due to acquisitions; net debt/EBITDA (excl. leases/pensions) at 1.85.

Outlook and guidance

• Order backlog is building, especially in OEM, with expected acceleration in growth through the year.

• Positive long-term trends from sustainability, electrification, and regulatory changes, especially in North America.

• US transition to A2L refrigerants in HVAC underway, supporting future growth.

• Price pressure on heat pumps in Eastern Europe expected to be temporary with limited impact for 2025.

• Acquisition pipeline remains strong for 2025 and beyond.