Momentum Group (MMGR) Q1 2025 (Q&A) earnings summary

Executive summary

• Revenue grew 11% year-over-year to SEK 735 million in Q1 2025, mainly driven by acquisitions amid subdued demand and a challenging global environment.

• EBITA increased 1% to SEK 76 million, with an EBITA margin of 10.3%, while operating profit declined due to warehouse relocation and acquisition costs.

• Strong cash flow from operating activities (SEK 92 million) and a high pace of acquisitions, with five acquisitions closed in Q1 adding significant annual revenue.

• Direct impact from announced tariffs is limited due to Nordic-focused operations and minimal US trade exposure.

• Automotive segment volumes stabilized quarter-on-quarter, supporting margin recovery alongside focus on other segments.

Financial highlights

• Q1 2025 revenue increased by 11% to SEK 735 million, with EBITA up 1% to SEK 76 million and net profit at SEK 44 million.

• EBITA margin for Q1 was 10.3% (down from 11.3%), and operating margin was 8.3% (down from 9.8%).

• Cash flow from operating activities was SEK 92 million, and available cash and cash equivalents stood at SEK 787 million.

• Rolling 12-month revenue rose 20% to SEK 2,947 million, with EBITA up 15% to SEK 323 million.

• Return on working capital (EBITA/WC) was 58% (59%), and equity/assets ratio stood at 33% (35%).

Outlook and guidance

• The group remains optimistic about continued acquisition-driven growth, supported by a strong financial position and decentralised structure.

• Customers in CapEx-intensive sectors are more cautious, potentially postponing investments.

• No cancellations in service business, but customer caution persists.

• Acquisition pipeline remains active, though some discussions are paused due to market uncertainty.

• The company maintains its financial target of EBITA growth above 15% per year.