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%, but sales declined due to a strong comparison period and phased-out products.

• EBIT fell to SEK 49.2 million (9% margin), impacted by negative FX and SEK 10 million in non-recurring costs.

• Profit after tax was SEK 32 million, and EPS reached SEK 1.10.

• Major strategic development: agreement to acquire Welotec, strengthening the energy segment and edge computing capabilities.

• Strategic investments continued, including product development and cost-saving programs.

Financial highlights

• Order intake: SEK 551 million; sales: SEK 545 million, down 9% year-over-year; EBIT: SEK 49 million (9% margin); net income: SEK 32 million; EPS: SEK 1.10.

• Free cash flow was negative at SEK -12 million, reflecting typical Q1 seasonality.

• Gross margin reached 54%, mainly driven by Westermo.

• Book-to-bill ratio at 1.01 for the group; backlog remains at SEK 1.0 billion.

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

Outlook and guidance

• Short-term outlook is uncertain due to global trade barriers, geopolitical, and economic volatility.

• Medium- and long-term confidence in profitable growth, supported by electrification and digitalization trends.

• Financial targets remain achievable but require improved market conditions and continued cost discipline.