INDUS (INH) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw three add-on acquisitions and solid order intake, but revenue (€402.4m) and adjusted EBITA (€24.9m) declined year-over-year due to economic headwinds and US tariff policy.

• Aperiodic tax income of over €8m boosted EPS to €0.63.

• Balance sheet remains robust with equity ratio up to 38.8%.

• FY 2025 group sales and adjusted EBITA guidance reduced due to trade conflicts and Chinese export controls on tungsten; Infrastructure segment sales guidance slightly raised.

• The new EMPOWERING MITTELSTAND strategy focuses on growth through acquisitions, internationalization, and engineering competence.

Financial highlights

• Q1 2025 revenue down 1.9% year-over-year to €402.4m; adjusted EBITA down 21% to €24.9m.

• Order intake rose 2.6% to €455.1m; order backlog up 4.4% to €664.5m compared to Q1 2024.

• Free cash flow at €-23.6m (Q1 2024: €6.1m), impacted by higher working capital and investments.

• Net debt increased 9.1% to €590.7m; equity ratio improved to 38.8%.

• Investments in property, plant, equipment, and M&A totaled €20.9m (Q1 2024: €12.5m).

Outlook and guidance

• 2025 group sales guidance revised to €1.70–1.85bn (previously €1.75–1.85bn); adjusted EBITA guidance set at €130–165m (previously €150–175m).

• Adjusted EBITA margin expected at 7.5–9.0% (2024: 8.9%).

• Free cash flow guidance above €90m.

• Materials Solutions segment faces risk of €20–40m sales loss and €8–15m EBITA impact in H2 2025 due to Chinese tungsten export controls.

• Segment guidance: Engineering and Infrastructure sales/EBITA to increase moderately; Materials Solutions sales/EBITA to decrease.