Berner Industrier (BERNER) Q1 2025 earnings summary

Executive summary

• Order intake rose 18.2% year-over-year to SEK 262.7 million, while net sales declined 2.9% to SEK 236.1 million, mainly due to currency effects and lower organic sales in Technology & Distribution.

• EBITA increased 26.3% to SEK 18.3 million, with the EBITA margin improving to 7.7% from 5.9% year-over-year, driven by higher gross margins in both business areas.

• Earnings per share before and after dilution were SEK 0.66, up 39.9% from SEK 0.47 in the prior year period.

• Cash flow from operating activities was SEK 15.1 million, but total cash flow for the period decreased to SEK 7.3 million from SEK 26.4 million a year earlier.

• Acquisition of Autofric AB, a water treatment company with SEK 60 million in 2024 revenue, was signed post-quarter and will be included from May 2025.

Financial highlights

• Gross margin improved to 40.1% from 37.4% year-over-year.

• Return on equity reached 25.0%, up from 19.5% in the prior year.

• Net interest-bearing debt (excluding IFRS 16) reduced to SEK 17.5 million from SEK 36.1 million year-over-year.

• Equity ratio increased to 39.4% from 34.9% year-over-year.

• Board proposes a dividend of SEK 0.95 per share, up from SEK 0.90.

Outlook and guidance

• Management notes gradual market recovery and strong order intake in most companies, with some weakness in battery production facility demand offset by other areas.

• The acquisition of Autofric AB is expected to strengthen the Energy & Environment segment and aligns with the Group's strategy.

• The decentralized model is seen as an advantage in navigating ongoing geopolitical and economic uncertainties.