Energy Save (ESGR) Q4 24/25 earnings summary

Executive summary

• Net sales increased by 37% in 2024 despite a 23% decline in the European heat pump market, driven by strong OEM partnerships, especially the Aira partnership, and strategic investments in digitalization and product development.

• Fiscal year 2024 was a short 8-month period due to a shift to a calendar year reporting cycle.

• Focused on residential property segment, with commercial product launches planned for fall 2025.

• High turnover and revenue growth achieved alongside major investments in digitalization, control platforms, and propane-based technology.

• Market remains cautious due to macroeconomic and political factors, but gradual recovery is expected in 2025, supported by new products and cost control.

Financial highlights

• Net sales for May–Dec 2024 increased 95% year-over-year to SEK 156.3 million; quarterly revenue up 42% year-over-year.

• Gross margin declined to 24.1% for the fiscal year and 25.2% for the quarter, attributed to higher direct deliveries.

• EBIT loss narrowed to SEK -11.2 million for the period (from -23.9 million), with higher costs from investments.

• Operating cash flow for the period was SEK -1.1 million, up from SEK -20.3 million year-over-year; cash position at period end was 54.1 MSEK.

• Equity at period end was 180.3 MSEK (192.7 MSEK); total assets 245.0 MSEK (275.4 MSEK).

Outlook and guidance

• Short-term uncertainty expected due to low seasonality, political, and geopolitical factors.

• Anticipates improvement in the coming high season, supported by lower interest rates, inflation, and favorable energy price trends.

• Focus on prioritized growth markets (Germany, UK, Benelux, Italy) and ongoing cost control initiatives, including reduced travel, IT, and consultant expenses.

• Continued investments in product development for both residential and commercial propane units.

• Investments in OEM and focus markets expected to yield results.