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 the group delivered a profit before tax of MNOK 64.9 over the last twelve months.

• Agora Bytom continued its strong momentum, with Q1 EBITDA of MNOK 10.3, up from MNOK 9.5 in Q1 2024, and occupancy rate at 95.8%.

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

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

• Leadership changes include a new CEO for Höganäs Borgestad and an incoming Investment Manager to strengthen the team.

Financial highlights

• Q1 2025 group revenue was MNOK 206, down from MNOK 223 in Q1 2024; EBITDA was MNOK -2, compared to MNOK 8 in Q1 2024.

• Operating profit (EBIT) for Q1 2025 was MNOK -11, and profit before tax was MNOK -22.

• Cash at period end was MNOK 175, with available liquidity of MNOK 235 (including undrawn credit facilities).

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

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

Outlook and guidance

• Order book and prospects for Höganäs Borgestad are strong for the remainder of 2025 and into 2026.

• Agora Bytom is expected to see increased occupancy, revenue, and EBITDA going forward, supported by cost reductions.

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

• 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.