Fasadgruppen Group (FG) Q1 2025 earnings summary

Executive summary

• Implemented a new, flatter organizational structure and partially new management team in Q1 to enhance transparency and efficiency.

• Organic sales declined by 10.3% year-over-year due to weak new build activity, but total net sales increased 12.2% to SEK 1,173.2 million, driven by acquisitions.

• Adjusted EBITA/EBITDA and margins improved significantly year-over-year, with Clearline performing in line with expectations.

• Order backlog reached a record SEK 4,039.8 million, up 31% year-over-year, with 4.3% organic growth, mainly driven by renovation demand and acquisitions.

• Focus remains on profitability, deleveraging, and operational efficiency through 2025.

Financial highlights

• Adjusted EBITA/EBITDA rose to SEK 76.6/77 million (margin 6.5%), up from SEK 20.3/20 million (margin 1.9%) last year.

• Net sales increased 12.2% year-over-year, but organic sales declined 10.3%.

• Operating cash flow for Q1 was negative at SEK -31.7 million, impacted by delayed payments related to the Clearline acquisition.

• Net debt/adjusted EBITDA pro forma at 3.25x, above the target of 2.5x.

• Interest-bearing net debt increased to SEK 2,291.4 million from SEK 1,376.5 million year-over-year.

Outlook and guidance

• Focus for 2025 is on profitability, cash flow, and deleveraging, with a more restrained pace of acquisitions.

• Order backlog showed organic growth of 4.3%, mainly driven by renovation demand, but new build activity remains subdued and outlook for the year is uncertain.

• Long-term goal: SEK 10 billion in sales and at least 10% EBITA margin by 2028.

• No dividend proposed for 2025 to prioritize balance sheet strength.