Nederman (NMAN) Q1 2025 earnings summary

Executive summary

• Orders received reached SEK 1,501m, a currency neutral decline of 1.8% year-over-year, with three of four divisions showing order growth and two achieving record orders despite a challenging macroenvironment.

• Acquisition of Euro-Equip in Spain finalized for approximately EUR 15 million (SEK 199.8m), strengthening presence in foundry and metal recycling markets and generating preliminary goodwill of SEK 147.8m.

• Continued investment in operational efficiency and innovation, including a new Innovation Center in Helsingborg and expanded production in Thomasville and Boston.

• Net sales were SEK 1,406m, flat currency neutral compared to Q1 2024, reflecting stable demand despite market uncertainty.

• Adjusted EBITA fell to SEK 142.5m (margin 10.1%), down from SEK 174.0m (12.5%) in Q1 2024, impacted by negative currency effects and acquisition costs.

Financial highlights

• Orders received just over SEK 1.5 billion, a slight decrease year-over-year; sales flat at SEK 1.406 billion.

• Gross margin improved to 40.4% from 39.1% year-over-year.

• Adjusted EBITDA was SEK 185.3m (13.2% margin), down from SEK 212.1m (15.2%).

• Net profit dropped to SEK 59.2m from SEK 90.2m, with EPS at SEK 1.69 (2.57).

• Cash flow from operating activities was SEK 15.3m, significantly lower than SEK 95.1m a year earlier, mainly due to higher working capital accumulation.

Outlook and guidance

• Demand remains slightly slower with investor hesitancy; base and service business continue to grow.

• Volatility expected in the next two quarters due to geopolitical uncertainty and tariffs.

• Order backlog and strong digital and service offerings position the company for continued growth despite macro challenges.

• Long-term prospects for industrial air filtration remain favorable due to increasing awareness of air quality issues.