H&D Wireless Sweden (HDW) Q1 2025 earnings summary

Executive summary

• Achieved best quarterly performance since 2017 listing, with Q1 2025 revenue of 6.8 MSEK and EBITDA of -0.4 MSEK; subsidiary reached break-even on own products and services for the first time.

• Revenue increased 39% year-over-year; EBITDA improved by 95% and EBIT by 91% compared to Q1 2024.

• Cost reductions and restructuring in 2024 led to a leaner, more focused organization with a single operating subsidiary.

• Order intake was weak (approx. 1 MSEK) due to global trade and economic uncertainties, but several significant customer orders were secured.

Financial highlights

• Net revenue: 6.4 MSEK (Q1 2025), up 36% year-over-year; total income: 6.8 MSEK, up 39%.

• EBITDA: -0.4 MSEK, a 95% improvement year-over-year.

• EBIT: -0.9 MSEK, a 91% improvement year-over-year.

• Net result after financial items: -1.1 MSEK, improved by 90% year-over-year.

• Operating costs decreased by 41% year-over-year.

• Cash and cash equivalents at period end: 0.0 MSEK (down from 1.3 MSEK year-over-year).

Outlook and guidance

• Focus remains on technology and hardware units, especially ODM business with paid customer development and IoT device production.

• New investment of 11.5 MSEK (net 8 MSEK) secured to support operations through the industrial downturn.

• Ongoing collaboration with Avnet expected to drive further customer acquisition and production ramp-up.

• Estimated 135 MSEK in potential revenue from 15 customers over the next four years.