engcon (ENGCON) Q1 2025 earnings summary

Executive summary

• Order intake surged 28% year-over-year to SEK 524 million, driven by strong demand in the Nordics and Europe, with the Nordics showing 49% organic growth in order intake and 21% net sales growth.

• Net sales increased 14% year-over-year to SEK 446 million, with Europe and the Nordics as the main contributors.

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

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

• Patent dispute with Rototilt fully settled in Sweden, with the court confirming no infringement.

Financial highlights

• EBIT margin improved to 18.8% from 15.2% in Q1 2024.

• Gross margin increased to 46.1% from 42.1% year-over-year.

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

• Equity-to-asset ratio was 62%.

• Operating cash flow improved, with unutilized liquidity at SEK 412 million.

Outlook and guidance

• Continued strong sales growth expected in the Nordics as the digging season begins, with stable growth in Europe.

• Order book is solid heading into Q2, but minor supply chain disruptions could cause delivery delays.

• Currency fluctuations, tariffs, inflation, and geopolitical factors remain key risks for future results.

• Management expects gross margin to remain between 43%-46% if current volumes and market conditions persist.