Fagerhult (FAG) Q1 2025 earnings summary

Executive summary

• Achieved record-high order intake of SEK 2,227 million in Q1 2025, up 5.9% year-over-year, driven by large project wins and strong backlog.

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

• Gross profit margin reached an all-time high, supported by ongoing cost reduction initiatives.

• Strategic acquisition of Trato TLV Group announced, expected to close in Q2 2025, strengthening position in France and healthcare/retail segments.

• Operating profit before IAC fell to SEK 145 million, with a 7.5% margin, and EPS before IAC was SEK 0.43, both down year-over-year.

Financial highlights

• EBIT before IAC was SEK 145 million (down from SEK 220 million), with a 7.5% margin (down from 10.1%).

• EPS before IAC was SEK 0.43 (down from SEK 0.78 year-over-year).

• Operating cash flow 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.

• EBITDA for the quarter was SEK 251 million, down from SEK 333 million in Q1 2024.

Outlook and guidance

• Further positive impact from cost reduction actions expected throughout 2025, with SEK 160 million targeted for 2025 and full effect estimated at SEK 180 million.

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

• Anticipates continued strong order intake and backlog, especially in infrastructure and professional segments.

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