Duroc (DURC) Q1 24/25 earnings summary

Executive summary

• Adjusted EBIT rose 165% to 3.5 Mkr from -5.6 Mkr year-over-year, despite a 3% revenue decline to 704.4 Mkr; net income improved to 0.6 Mkr from -3.0 Mkr.

• Polymer businesses showed gradual recovery, while industrial and workshop segments remained stable; order intake and project deliveries were robust in DMT and Rail.

• Duroc acquired 51% of Robot Nordic to strengthen automation offerings, with a buy/sell option for remaining shares after three years.

Financial highlights

• Revenue fell 3% year-over-year to 704.4 Mkr; organic growth was -2%.

• Adjusted EBITDA increased to 27.3 Mkr (20.8 Mkr); adjusted EBIT margin improved to 0.5% (-0.8%).

• Cash flow from operations was -9.9 Mkr (23.8 Mkr); liquidity at period end was 60.4 Mkr (28.4 Mkr).

• Net debt (excl. leases) decreased to 36.6 Mkr (100.2 Mkr); equity ratio rose to 64% (59%).

• Result per share was -0.06 SEK (-0.08); adjusted result per share -0.05 SEK (-0.09).

Outlook and guidance

• Stable development expected in industrial and workshop segments; polymer businesses anticipate gradual improvement, though recovery in IFG and Drake is slow.

• Strong financial position and improved acquisition climate provide opportunities for value-creating acquisitions.

• Cost savings and working capital control are ongoing; market for corporate transactions is more favorable.