NCAB Group (NCAB) Q1 2025 earnings summary

Executive summary

• Order intake increased by 5% to SEK 1,014 million, with strong growth in North America and East, and recovery in Europe from Q4 lows.

• Net sales rose 1% year-over-year to SEK 958.3 million, supported by acquisitions, though organic growth declined.

• EBITA/EBITDA fell 30% year-over-year to SEK 100 million, with margin down to 10.4% from 15.0%, but improved sequentially.

• Gross margin declined to 34.7% from 38.1% last year, impacted by FX, pricing, higher freight costs, and product mix.

• No dividend will be paid or proposed due to market uncertainty and to maintain financial flexibility for M&A.

Financial highlights

• Book-to-bill ratio at 1.06, indicating healthy order momentum.

• Earnings per share at SEK 0.28, down from SEK 0.48 last year.

• Operating cash flow at SEK 53.3 million, down from SEK 92.9 million year-over-year.

• Net working capital at 9% of sales, up from 8% last year, partly due to ERP implementation and acquisitions.

• Available liquidity at SEK 1,355 million, up from SEK 1,104 million.

Outlook and guidance

• Order intake trends suggest a healthy order book for Q2, with positive signs in North America and East.

• Gross margin expected to stabilize at 35%-36% barring further FX or tariff shocks.

• Tariffs present both challenges and opportunities, with costs being passed to US customers.

• M&A pipeline remains active, with 2–5 acquisitions targeted for the year, focusing on Europe, US, and East.

• Board prioritizes financial flexibility over dividends due to volatile conditions.