Energy Save (ESGR) Q4 24/25 earnings summary

Executive summary

• Net sales grew 37% in 2024 despite a 23% decline in the EU market, driven by OEM partnerships and strategic investments, with the Aira partnership contributing significantly.

• Fiscal year changed to calendar year, resulting in an eight-month reporting period for 2024.

• EBIT loss narrowed to -4.9 MSEK in Q4 and -11.2 MSEK for the period, reflecting improved cost control.

• Focused on residential property segment, with commercial product launches planned for fall 2025.

• Market remains cautious due to macroeconomic and political factors, but gradual recovery is expected in 2025, supported by new propane-based products and cost control.

Financial highlights

• Net sales increased by 37% for the full 2024 period; quarterly revenue up 42% year-over-year, with May–December turnover up 97% and net sales up 95% compared to 2023.

• Q4 gross margin on revenue rose to 37%, but gross margin on net sales fell to 24.1% for the year and 25.2% for the quarter due to higher direct deliveries.

• EBIT remained negative but improved versus prior periods; EBITDA improved to -3.3 MSEK in Q4 and -7.0 MSEK for the period.

• Operating cash flow for Q4 was 4.7 MSEK; for the period, cash flow was stable at minus SEK 1 million.

• Cash position at period end was 54.1 MSEK.

Outlook and guidance

• Short-term uncertainty expected due to low seasonality, political, and geopolitical factors, but improvement anticipated in the coming high season, supported by lower interest rates, inflation, and favorable energy price trends.

• Focus on prioritized growth markets (Germany, UK, Benelux, Italy) and ongoing cost control initiatives, including reduced travel, IT, and consultant expenses.

• Continued investments in product development for both residential and commercial propane units.