Garpco (GARPCO) Q1 2025 earnings summary

Executive summary

• Net sales increased by 5% to 170,354 tkr compared to Q1 2024, but adjusted for acquisitions, sales were flat year-over-year.

• EBITDA fell to 4,964 tkr from 11,488 tkr due to weak construction sector demand, negative currency effects (1.4 Mkr), and one-off costs (3.1 Mkr).

• Net result after tax was -2,096 tkr, down from 3,201 tkr in Q1 2024; EPS was -2.01 kr (3.37 kr).

• Comprehensive restructuring initiated to improve profitability, including closure or divestment of low-margin units.

Financial highlights

• Revenue: 170,354 tkr (162,630 tkr Q1 2024); EBITDA: 4,964 tkr (11,488 tkr); EBITA: 419 tkr (6,845 tkr).

• Net result before tax: -2,210 tkr (4,415 tkr); after tax: -2,096 tkr (3,201 tkr).

• Net debt increased by 6,014 tkr to 54,773 tkr; cash and equivalents at period end: 26,613 tkr.

• Investments in tangible assets: 2,690 tkr (6,126 tkr Q1 2024); intangible assets: 79 tkr (578 tkr).

• Available liquidity including unused credit: 45,886 tkr (40,043 tkr Q1 2024).

Outlook and guidance

• 2025 will be marked by continued restructuring, with focus on core business and outsourcing of price-pressured product groups.

• Polymera Material expected to shift from divestment to investment and growth; Interiör och design to phase out unprofitable lines.

• Q2 order intake has improved, with several units seeing positive market signals.