Nexam Chemical (NEXAM) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were SEK 49.3 million, down 7% year-over-year, with EBITDA at SEK 1.3 million versus SEK 2.2 million in Q1 2024.

• Gross margin improved to 48% from 45% year-over-year, marking the ninth consecutive quarterly increase.

• March showed significant strength after a slow start in January and February, with recycling and aesthetics segments offsetting lightweight weakness.

• 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).

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

• Cash and cash equivalents at period end: SEK 1.1 million (Q1 2024: SEK 2.9 million).

• Cash flow from operating activities: SEK 1.9 million (Q1 2024: SEK 3.6 million); total cash flow: SEK -1.5 million.

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

Outlook and guidance

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

• Stable and positive development anticipated for coming quarters, with optimism following a strong March.

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