Infranord (I) Q1 2025 earnings summary

Executive summary

• Net sales increased to 1,016 MSEK (up 6.8% year-over-year), driven by the maintenance segment.

• Operating result declined to -76 MSEK from -60 MSEK, mainly due to a project mix with lower margins and seasonal effects.

• Order intake fell to 1,368 MSEK (from 2,072 MSEK), while order backlog ended at 7,794 MSEK (down from 8,600 MSEK).

• Cash flow from operating activities was -23 MSEK, a significant drop from 136 MSEK last year.

• Organizational restructuring in Sweden into three divisions: Maintenance, Construction, and Technology.

Financial highlights

• Net sales: 1,016 MSEK (951 MSEK year-over-year).

• Operating result: -76 MSEK (-60 MSEK year-over-year).

• Net result: -70 MSEK (-51 MSEK year-over-year).

• Operating margin: -7.5% (-6.3% year-over-year).

• Cash flow from operations: -23 MSEK (136 MSEK year-over-year).

Outlook and guidance

• Market outlook in Sweden is positive due to increased government funding for railway maintenance, but the allocated funds are still insufficient for all needs.

• Norway’s market is stable, with a shift from new construction to reinvestment and maintenance.

• The company is closely monitoring global market prices and potential trade barriers, though direct exposure is low.

• Actions are underway to improve profitability and reduce net debt, as the net debt/EBITDA ratio exceeds the long-term target.