Energy Save (ESGR) Q1 25/26 earnings summary

Executive summary

• Net sales increased by 39% to SEK 53.9 million; total revenue up 31% to SEK 57.1 million year-over-year.

• EBIT improved to SEK -4.0 million from SEK -8.8 million year-over-year; EBIT margin improved from -20.2% to -7.0% sequentially.

• Cost-saving measures reduced costs by 21% year-over-year, including facility reductions and increased cost awareness.

• Achieved ISO 9001 and 14001 certifications and signed a new distribution agreement in Switzerland.

• 1,566 heat pumps sold in Q1, up 216% year-over-year, with cumulative sales surpassing 30,000 units.

Financial highlights

• Gross margin: 28.4%, up from 26.3% year-over-year; gross profit rose to SEK 18.5 million from SEK 14.9 million.

• EBITDA improved to SEK -2.2 million from SEK -7.3 million year-over-year.

• Operating cash flow was SEK -23.5 million, impacted by inventory build-up for propane units and increased receivables.

• Cash and cash equivalents at period end were SEK 29.3 million, down from SEK 59.8 million.

• Debt to equity ratio stood at 74.5%.

Outlook and guidance

• Q2 expected to be weaker sequentially due to low season and OEM customer inventory build-up.

• Anticipate recovery and growth in the second half of 2025, driven by high season and new product launches.

• Cost base reductions position the company to scale up for the peak season starting in Q3.

• Both OEM and ES brand sales expected to increase in the high season.

• Full-year sales to Aira expected to reach SEK 200–400 million as per contract.