Nexam Chemical (NEXAM) Q1 2025 earnings summary

Executive summary

• Q1 2025 began slowly but ended strongly, with March showing significant strength and a positive outlook for future quarters.

• Net sales for Q1 2025 were SEK 49.3 million, down 7% year-over-year, with EBITDA at SEK 1.3 million.

• Sales into reactive recycling increased by 50% compared to the previous quarter, reaching an all-time high.

• The company focuses on additives for plastics, targeting sustainability and advanced applications, with a growing emphasis on recycling.

• Cost-saving programs and focused cost control helped maintain stable EBITDA and operational cash flow.

Financial highlights

• Net sales: SEK 49.3 million (Q1 2024: SEK 53.2 million); EBITDA: SEK 1.3 million (Q1 2024: SEK 2.2 million).

• Gross margin reached a record 48%, up from 45% a year ago, marking the ninth consecutive quarter of improvement.

• Operating loss before tax: SEK -4.0 million (Q1 2024: SEK -1.8 million).

• Available cash totaled SEK 26 million, with financial stability supported by self-generated cash flows and unused credit facilities.

• Earnings per share: SEK -0.05 (Q1 2024: SEK -0.02).

Outlook and guidance

• Expectation of higher sales in Q2 versus Q1, with full-year 2025 sales anticipated to exceed 2024 despite a slow start.

• Management expects continued strong growth in recycling, with new customers ramping up and strong interest from the German market.

• Growth is expected in all segments, especially recycling, with high confidence in continued high-percentage growth.

• Gross margin is targeted to reach 50% through ongoing recipe optimization and cost efficiency.

• European trade fairs and increased operator staffing signal confidence in future order volumes.