Energy Save (ESGR) Q1 24/25 earnings summary

Executive summary

• Revenue grew 187% year-over-year to 78.7 MSEK, driven by the Aira deal in the Villavärme segment.

• Fourth consecutive quarter of positive sales growth, with Q1 being the third strongest quarter ever.

• Company entered the Swedish Energy Agency's accelerator for US expansion and renewed framework agreements for building heating solutions.

Financial highlights

• Operating income (EBIT) was 0.3 MSEK, up from -8.7 MSEK year-over-year; EBIT margin improved to 0.4% from -29.6%.

• EBITDA reached 1.9 MSEK, compared to -7.3 MSEK last year; EBITDA margin at 2.3%.

• Net income for the quarter was 0.5 MSEK, up from -8.8 MSEK; EPS at 0.1 SEK (vs. -1.4 SEK).

• Operating cash flow was -0.5 MSEK, a significant improvement from -35.2 MSEK last year.

• Gross margin on revenue was 24.1% (26.7% last year); on net sales, 22.1% (21.6%).

Outlook and guidance

• Entering high season with expectations of strengthened business in the next quarter, supported by lower distributor inventories and increased market activity.

• Growth rate in coming quarters expected to be somewhat weaker than the strong Q1, due to market conditions and timing of product launches.

• Financial stability allows for strategic, phased growth and recovery.