Fagerhult (FAG) Q1 2025 earnings summary

Executive summary

• Achieved record organic order intake growth of 5.9% in Q1 2025, reaching SEK 2,227 million, driven by large project wins in Sweden and Saudi Arabia.

• Net sales declined organically by 11% to SEK 1,940 million, reflecting lower order intake in prior periods and slower deliveries.

• Gross profit margin before IAC improved to 40.5%, supported by ongoing cost reduction initiatives.

• Announced the intended acquisition of Trato TLV Group, positioning as the second largest in the French professional lighting market and strengthening presence in healthcare/retail segments.

• Operating profit before IAC was SEK 145 million, with a 7.5% margin, down from SEK 220 million and 10.1% a year earlier.

Financial highlights

• Q1 2025 order intake: SEK 2,227 million (+5.9% organic); net sales: SEK 1,940 million (-11.0% organic).

• EBIT before IAC: SEK 145 million; EBIT margin before IAC: 7.5%.

• EPS before IAC: SEK 0.43, down from SEK 0.78 in Q1 2024.

• Operating cash flow for Q1 was SEK 26 million, down from SEK 114 million year-over-year.

• Net debt reduced to SEK 2,148 million, the lowest in over seven years.

Outlook and guidance

• Further positive impact from cost reduction actions expected throughout 2025, with margin improvement anticipated as volumes recover.

• Market conditions remain volatile and unpredictable, with subdued construction activity but positive trends in renovation markets.

• The Trato TLV acquisition is expected to close in Q2 2025 and positively impact EPS for the year.