Energy Save (ESGR) Q1 25/26 earnings summary

Executive summary

• Net sales increased by 39% to SEK 53.9 million year-over-year, reflecting strong growth and effective cost discipline.

• Gross margin improved to 28.4% from 26.3% year-over-year, and EBIT margin improved to -7.0% from -20.2% sequentially.

• Over 30,000 heat pumps sold cumulatively, with quarterly sales ranging from 1,566 to 2,661 units.

• Cost-saving measures reduced other expenses by 21% year-over-year and included facility reductions and increased cost awareness.

• Strategic investments in digital and propane platforms, new certifications, and expanded distributor network support future growth.

Financial highlights

• Total revenue increased by 31% to SEK 57.1 million year-over-year.

• Gross profit rose to SEK 18.5 million, with EBITDA improving to SEK -2.2 million from SEK -7.3 million year-over-year.

• Operative cash flow was SEK -23.5 million, impacted by inventory build-up and increased receivables.

• Cash and cash equivalents at period end were SEK 29.3 million, down from SEK 59.8 million.

• Loss for the quarter reduced to SEK -3.97 million from SEK -9.08 million year-over-year.

Outlook and guidance

• Q2 expected to be weaker due to seasonal effects and OEM customer inventory build-up, but a strong upturn is anticipated in the second half of 2025 driven by high season and new product launches.

• Both OEM and ES brand sales expected to increase in the high season.

• Full-year sales to Aira expected to reach SEK 200–400 million as per contract.

• Lower interest rates and inflation, along with improved energy price balance, are expected to support demand.

• Cost base reductions position the company to scale up for the peak season starting in Q3.