Gapwaves (GAPW) Q1 2025 earnings summary

Executive summary

• Achieved 46% year-on-year net sales growth in Q1 2025, reaching SEK 22.8 million, driven by strong demand from key automotive customers and new Tier 1 orders.

• Adjusted EBITDA improved to -SEK 2.5 million, a 71% year-on-year improvement, reflecting disciplined cost control.

• Transitioned to a full-solution provider, offering design, production processes, and high-volume manufacturing capabilities.

• 2025 marks a transformative year with production ramp-up for Valeo and Hella projects and new development agreements with Tier 1 suppliers.

• Well positioned for profitable growth, leveraging established partnerships and long-term Tier 1 relations.

Financial highlights

• Q1 2025 net sales were SEK 22.8 million, up 46% year-over-year; excluding production equipment, growth was 70%.

• Adjusted EBITDA for Q1 was -SEK 2.5 million, a 71% improvement year-over-year.

• Cash flow for Q1 was -SEK 5.3 million, mainly due to increased working capital and accounts receivable of SEK 30 million.

• Equity/assets ratio was 72.0% at Q1 2025, with cash and cash equivalents at SEK 33.8 million.

• No financial debt except lease liabilities; stable liquidity and capital situation.

Outlook and guidance

• Confident in maintaining growth momentum, supported by strong order intake, ongoing projects, and production ramp-up for key customers.

• High-volume manufacturing for Valeo to be transferred to Frencken Group in China by 2026.

• Flexible production model and regionalization seen as strengths amid global trade uncertainties.

• Market for automotive radar sensors expected to grow at 25% annually, driven by regulatory and safety requirements.

• Timelines for new projects and production starts are being maintained, providing predictability.