CTEK (CTEK) Q1 2025 earnings summary

Executive summary

• Net sales reached SEK 213 million, up 5% organically year-over-year, marking the fourth consecutive quarter of organic growth.

• Consumer division grew for the seventh consecutive quarter, with 7% organic growth and an adjusted EBITDA margin of 34.8%, driven by strong North American and online sales.

• Professional division achieved its first-ever positive EBITDA margin at 6%, supported by client brand sales, improved margins on new EV chargers, and a stronger cost base.

• Gross margin improved to 56.4%, attributed to a favorable product mix and more Low Voltage products.

• The company is entering Phase 3 of its strategic plan, focusing on accelerated growth and portfolio expansion.

Financial highlights

• Net sales: SEK 213 million, up 5% organically from SEK 201 million year-over-year.

• Gross margin: 56.4%, up from 54.0% year-over-year.

• Adjusted EBITA: SEK 19 million; margin 9.1% (down from 9.7%).

• Cash flow from operating activities: SEK 8 million, down from SEK 45 million year-over-year.

• Net debt/Adjusted EBITDA improved to 1.9x from 2.2x year-over-year.

Outlook and guidance

• Strategic plan entering Phase 3, targeting accelerated geographical and product portfolio expansion, with further details at the May 22 Capital Markets Day.

• Management remains positive about long-term cash flow trends and financial stability.

• The company targets SEK 2 billion in annual net sales and a 20% adjusted EBITA margin in the medium term.