engcon (ENGCON) Q1 2025 earnings summary

Executive summary

• Order intake rose 28% year-over-year to SEK 524 million, driven by strong demand in the Nordics ahead of the digging season and low dealer inventory.

• Net sales increased 14% to SEK 446 million, with Europe and the Nordics as key growth regions.

• Operating profit (EBIT) grew 40% to SEK 84 million, with an operating margin of 18.8% (up from 15.2%).

• Gross margin reached 46.1%, supported by higher production volumes and favorable product/market mix.

• The company settled a major patent lawsuit in Sweden, removing legal uncertainty.

Financial highlights

• Net sales: SEK 446 million, up 14% year-over-year; order intake: SEK 524 million, highest in over two years.

• EBIT: SEK 84 million, up 40% year-over-year; EBIT margin 18.8% (up from 15.2%).

• Gross margin: 46.1% (up from 42.1% last year).

• Return on capital employed (ROCE) reached 39%.

• Equity-to-asset ratio was 62%.

Outlook and guidance

• Continued strong sales growth expected in the Nordics and stable growth in Europe.

• Order book is solid heading into Q2, but minor supply chain disruptions could impact deliveries.

• Currency fluctuations, especially SEK strength, may continue to affect results.

• Tariff impacts in the Americas remain uncertain; extra costs are being passed to customers.

• Gross margin expected to remain between 43%-46% if current volumes and market climate persist.