Ferroamp (FERRO) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw revenue decline 38% year-over-year to 20.7 MSEK due to a weak solar market and high inventory levels at distributors.

• EBITDA improved to -10.1 MSEK from -17.8 MSEK year-over-year, driven by cost savings and operational efficiencies.

• A partially guaranteed rights issue of 75.8 MSEK was initiated post-period to strengthen liquidity and pay down debt.

• Strategic product launches included FerroAl AI control, V2X vehicle-to-grid charger, and a backup power solution.

• First major order from Aira (25 MSEK) for the European market, with deliveries starting in 2026.

Financial highlights

• Net sales: 20.7 MSEK (33.4 MSEK Q1 2024); total income: 26.2 MSEK (46.2 MSEK Q1 2024).

• EBITDA: -10.1 MSEK (-17.8 MSEK Q1 2024); EBIT: -11.8 MSEK (-22.5 MSEK Q1 2024).

• Net result: -12.5 MSEK (-23.4 MSEK Q1 2024); EPS: -0.21 SEK (-0.76 SEK Q1 2024).

• Operating cash flow: -15.4 MSEK (-20.9 MSEK Q1 2024); adjusted: -7.9 MSEK.

• Gross margin: 22% (19% Q1 2024); soliditet (equity ratio): 60% (62% Q1 2024).

Outlook and guidance

• Cost reduction targets achieved one quarter ahead of plan; further cost decreases expected in Q2.

• Market recovery slower than anticipated; focus remains on liquidity and achieving positive cash flow.

• Rights issue proceeds to fund operations until cash flow turns positive.