Ependion (EPEN) Q1 2025 earnings summary

Executive summary

• Order intake increased by 5% year-over-year, with Westermo up 2% and Beijer Electronics up 8%.

• Sales declined 8-9% compared to the strong Q1 last year, impacted by tough comparisons, lower volumes, and FX effects.

• EBIT fell to 49.2 MSEK (9% margin), affected by weak Beijer Electronics results, non-recurring costs of ~10 MSEK, and negative FX.

• Strategic acquisition of Welotec to strengthen the energy segment and add edge computing technology.

• Continued strategic investments in product development and cost savings initiatives.

Financial highlights

• Order intake: SEK 551 million; Sales: SEK 545 million; EBIT: SEK 49.2 million (9% margin).

• Net income: SEK 32 million; EPS: SEK 1.10.

• Free cash flow: minus SEK 12.2 million, reflecting typical Q1 seasonality and ongoing investments.

• Gross margin reached 54%, driven by Westermo's performance.

• Non-recurring costs totaled SEK 10 million, including SEK 3.4 million restructuring in Beijer Electronics and SEK 2.5 million acquisition costs.

Outlook and guidance

• High uncertainty persists due to global trade tensions, geopolitical, and economic volatility.

• Short-term outlook is difficult to assess; cost discipline and cautious approach maintained.

• Confident in medium- and long-term profitable growth, supported by megatrends like electrification and digitalization.

• Company targets 10% average annual revenue growth and 15% EBIT margin.