Exsitec (EXS) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly results with adjusted EBITDA/EBITA of SEK 46 million, the highest to date, and net sales of MSEK 240, up 13% year-over-year.

• Returned to organic growth at 2% after two quarters of negative growth, with improved performance in Norway and other Nordics.

• Order intake grew 15% year-over-year in Q1, with strong product mix and notable performance in Denmark and Norway.

• Recurring net revenue from software grew 33% year-over-year, with one-third organic and the rest from acquisitions.

• New CEO Niklas Ek took office in March 2025, focusing on efficiency and cloud migration.

Financial highlights

• Net sales for Q1 2024 reached MSEK 240, up 13% year-over-year, with organic growth at 2%.

• Adjusted EBITDA/EBITA grew 13% year-over-year, reaching SEK 46 million, with a margin of 19%.

• Recurring net revenue from software grew 32-33% year-over-year, now representing 23% of total revenue.

• Cash flow from operating activities was MSEK 38, up 37% from MSEK 27.

• Earnings per share increased to SEK 2.03, up 14% year-over-year.

Outlook and guidance

• Financial goals: annual net sales and EBITDA/EBITA per share growth of at least 15%; net debt not to exceed 2x EBITDA; dividend payout policy of 20%-40% of profit after tax.

• Q2 started strong with two major public sector deals expected to impact later in 2025 and 2026.

• Focus on sales execution, operational excellence, and integrating recent acquisitions.

• Continued investment in trainee program, with future size dependent on market demand and staff turnover.

• Emphasis on efficiency, cloud migration, and scaling operations in Denmark and Norway.