Cembre (CMB) Q1 2025 earnings summary

Executive summary

• Consolidated sales reached €60.0 million in Q1 2025, up 2.3% year-over-year, with net profit rising 22.4% to €11.9 million, representing 19.8% of sales.

• EBITDA margin improved to 32.6% from 28.2% in Q1 2024, and EBIT margin rose to 26.9% from 22.7%.

• Growth was driven by strong export performance, especially in the UK, Spain, and France, offsetting a 6.5% decline in Italian sales.

• The Board approved a new share buy-back program and launched a five-year incentive plan for executives and managers.

• Ongoing investments in production capacity and automation, with €29.5 million invested in 2024 and major expansion projects underway.

Financial highlights

• Q1 2025 sales: €60.0 million (+2.3% YoY); EBITDA: €19.6 million (32.6% margin); EBIT: €16.1 million (26.9% margin); Net profit: €11.9 million (19.8% margin).

• Net financial position improved to €7.1 million at March 31, 2025, from €2.0 million at December 31, 2024.

• Export sales rose 9.8% year-over-year, while Italian sales declined 6.5%.

• UK subsidiary sales up 18.6% YoY; Spain +14.5%; France +8.2%; Germany +5.7%; USA +0.2%.

• Dividend yield averaged 4.4% over the last 5 years; 2024 dividend per share €1.88.

Outlook and guidance

• Management expects consolidated turnover and economic results to grow in 2025, despite economic uncertainty and geopolitical tensions.

• Cumulative sales for the first four months of 2025 grew 5.0% over the same period in 2024.

• Focus on strengthening competitive advantage through new product development, R&D, and higher foreign market penetration, especially in the US and Germany.

• Continued investment in automation and production capacity, including €42 million expansion for electrical connectors.