Green Landscaping Group (GREEN) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 12% to SEK 1,223 million, mainly due to one of the mildest winters in 15 years impacting snow-related services, with Sweden showing resilience and Norway more affected.

• EBITA for Q1 2025 dropped 56% to SEK 40 million, with a margin of 3.2% versus 6.5% last year, including a SEK 19 million capital gain from a property sale in Lithuania.

• Rolling twelve months net sales increased 4% to just under SEK 6.2 billion, driven by acquisitions (+8%) but offset by negative organic growth (-4%) and currency effects.

• Financial leverage increased to 2.6x EBITA, slightly above the 2.5x target but within covenant headroom, with available liquidity at SEK 744 million.

• The group remains committed to its M&A strategy, targeting 8–10 acquisitions in 2025, focusing on Germany-Austria-Switzerland.

Financial highlights

• Q1 net sales fell 12% year-over-year to SEK 1,223 million; rolling twelve months net sales up 4% to SEK 6,192 million.

• Q1 EBITA dropped 56% to SEK 40 million; rolling twelve months EBITA down 8% to SEK 477 million.

• EBITA margin was 3.2% for Q1 2025, 7.7% rolling twelve months.

• Cash flow from operating activities was SEK 139 million in Q1 and SEK 531 million rolling twelve months.

• EPS for Q1 2025 was SEK -0.33, compared to SEK 0.40 last year.

Outlook and guidance

• M&A ambition for 2025 is to invest in 8–10 companies, with most deals likely by June and a focus on Germany.

• Margin improvements in Sweden are expected to become visible from Q3 onward.

• Management expects continued strong demand, especially for urban adaptation to climate change, with public sector demand resilient.

• No material near-term impact expected from global tariffs or political turmoil; recession risk remains a concern.

• Financial targets: average annual sales growth of 10%, EBITA margin of 8%, leverage not to exceed 2.5x, and dividend payout of 40% of profit.