Nobia (NOBI) Q1 2025 earnings summary

Executive summary

• Achieved positive EBIT in Q1 2025, reversing last year's loss, with significant cash generation, improved working capital, and strengthened Nordic profitability driven by cost savings and consumer sales growth.

• Gross margin reached 38.6%, the highest since Q1 2018, marking five consecutive quarters of improvement.

• Net sales declined to SEK 2,474m from SEK 2,615m, with organic sales down 6% year-over-year due to project market softness.

• Cost savings exceeded SEK 70 million in the quarter and over SEK 500 million in the past 1.5–2 years, with further savings expected from factory closures and restructuring.

• UK segment remains challenged by project market decline, store closures, and increased marketing costs, resulting in negative EBIT.

Financial highlights

• Cash flow from operating activities turned positive at SEK 28 million, a significant improvement from SEK -258 million last year.

• Operating income (EBIT) improved to SEK 16 million with a margin of 0.6%, up from SEK -27 million and -1.0% last year.

• Group EBIT margin in the Nordics rose to 7.5% from 1.6%, with Denmark leading margin gains.

• Net debt (excluding leases and pensions) decreased to SEK 2,462m from SEK 2,834m; net debt/equity improved to 119% from 134%.

• Operating cash flow (including investments) improved to SEK -85 million from SEK -574 million last year.

Outlook and guidance

• Consumer market recovery continues in all geographies, especially Denmark and Sweden, while the project market remains soft and is expected to stay subdued through 2025.

• Strategic focus on ramping up the Jönköping factory, UK turnaround, and delivering further cost reduction programs, with an additional SEK 100 million in savings targeted for 2025.

• Closure of the Finnish factory to yield EUR 4 million annual savings after a EUR 6 million one-time cost.

• Indirect risks from international trade policy changes, interest rates, and inflation are being closely monitored.