Borgestad (BOR) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a loss before tax of MNOK -23.0, mainly due to seasonality in Höganäs Borgestad, while Agora Bytom maintained positive momentum with Q1 EBITDA of MNOK 10.3, up from MNOK 9.5 in Q1 2024.

• Höganäs Borgestad had a weaker quarter, with Q1 revenue of MNOK 186 and EBITDA of MNOK -8.5, compared to MNOK 203.9 and MNOK 3.3 in Q1 2024.

• Agora Bytom's occupancy rate reached 95.8% at quarter-end, with further increases expected.

• Order backlog for Höganäs Borgestad remains healthy, supporting a positive outlook for the rest of 2025.

• Management remains optimistic for the rest of the year, with a healthy order book and positive outlook for both main business segments.

Financial highlights

• Q1 2025 group revenue was MNOK 206.5, down from MNOK 223 in Q1 2024; EBIT was MNOK -11, and profit before tax was MNOK -22.

• Net interest-bearing debt stood at MNOK 249 at quarter-end, with equity ratio stable at 54%.

• Cash at period end was MNOK 175, with available liquidity of MNOK 235.

• Net cash from operating activities was negative, driven by negative results and increased inventory.

• Negative cash flow from operations and investments reduced cash position, but liquidity remains solid ahead of high season.

Outlook and guidance

• Agora Bytom's revenue and EBITDA are expected to increase slightly in coming years, supported by higher occupancy and cost reductions.

• Höganäs Borgestad targets profitability growth, focusing on operational improvements, cost cutting, and capital efficiency.

• Management expects improved underlying results and stronger cash flow, with positive margin development in both segments.

• Strategic M&A and liquidity events for Agora Bytom and add-on acquisitions for Höganäs Borgestad are under review.

• Progress may vary due to seasonality, cyclical swings, and one-off items.