Indutrade (INDT) Q1 2025 earnings summary

Executive summary

• Order intake grew 5% year-over-year to SEK 8,462 million, with 1% organic growth despite market uncertainty.

• Net sales increased 4% to SEK 8,036 million, driven by acquisitions; organic sales were flat.

• EBITA grew 6% to SEK 1,094 million, with a margin of 13.6% (13.3% excluding one-offs); profit for the quarter up 6% to SEK 623 million.

• Three acquisitions completed in Q1 2025, including ECOROLL (Germany), IPP (Ireland/UK), and Ideus (Sweden), adding SEK 390 million in annual sales and maintaining a robust pipeline.

• Strong demand in pharmaceuticals, process industry, energy, and medtech; stable infrastructure and construction; weaker general engineering.

Financial highlights

• EBITDA/EBITA increased 6% to SEK 1,094 million; margin at 13.6% (13.3% excluding one-offs).

• Gross margin reached a record Q1 high at 35.4% (up from 35.0%).

• Recurring operational cash flow was SEK 644 million, up 32% year-over-year.

• Earnings per share rose 6% to SEK 1.71.

• Return on capital employed was 19%.

Outlook and guidance

• Companies are actively aligning costs to increased market volatility and lower order backlog.

• Expectation of improved profit margin in Q2 compared to Q1.

• Acquisition activity expected to remain strong throughout 2025, supported by a positive climate and strong financial position.

• Market volatility, especially from tariffs, introduces uncertainty, particularly in global segments.

• Decentralised business model and cost adaptation seen as advantages in a volatile global economy.