HANZA (HANZA) Q1 2025 earnings summary

Executive summary

• Net sales rose 6% year-over-year in Q1 2025, reaching SEK 1,326 million, primarily driven by the Leden acquisition, with organic growth at -3%.

• Adjusted operating profit reached SEK 97 million, with margin improving to 7.3% from 5.3% a year ago.

• Leden acquisition completed and integrated, expanding capacity, customer base, and presence in Finland and Estonia.

• New assembly hall opened in Töcksfors, Sweden, and sustainability initiatives advanced, including improved energy efficiency.

• Launched the LINX market program to capitalize on supply chain shifts, especially in Germany and targeted sectors.

Financial highlights

• Net sales: SEK 1,326 million (+6% year-over-year); pro forma with Leden: SEK 1,535 million.

• Adjusted operating profit: SEK 97 million (up from SEK 67 million); margin 7.3% (5.3%).

• Adjusted EPS after dilution: SEK 1.14 (0.68); reported EPS after dilution: SEK 0.90 (0.77).

• Operating cash flow improved to SEK 68 million (31); net debt increased to SEK 1,197 million due to Leden acquisition.

• Net debt/EBITDA at 2.3x, below the 2.5x target; equity ratio at 34%.

Outlook and guidance

• 8% operating margin target for 2025 reiterated, with confidence in achieving SEK 6.5 billion sales.

• Organic growth in legacy operations resumed at quarter-end and is expected to continue.

• Leden integration and new sales from 2024 expected to contribute positively in 2025.

• CapEx expected to remain low for the rest of the year, with no major expansion investments planned.

• Preparing for "HANZA 2028" to drive next phase of growth and operational performance.