NOTE (NOTE) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were SEK 1,003 million, a 5% year-over-year decline, but profitability improved with record margins and strong cash flow generation.

• Operating profit reached SEK 93 million, with adjusted operating profit at SEK 100 million, reflecting restructuring costs in the UK.

• Profit after tax was SEK 65 million, or SEK 2.27 per share, slightly up from SEK 64 million (SEK 2.20 per share) in Q1 2024.

• Strong cash flow after investments at SEK 156 million, supported by reduced inventory and receivables; cash flow per share was SEK 5.48.

• Board proposed a SEK 7 per share dividend and cancellation of 500,000 treasury shares, citing high profitability and strong cash flows.

Financial highlights

• Operating profit for Q1 2025 was SEK 93 million, up 2% year-over-year; underlying operating profit rose 9%.

• Operating margin improved to 9.2% from 8.6% year-over-year; adjusted operating margin reached 10.0%.

• Gross profit was SEK 133 million, with a gross margin of 13.3% (Q1 2024: 12.4%).

• Profit margin improved to 8.2% from 7.4% year-over-year.

• Equity to asset ratio at quarter-end was 49.9% (Q1 2024: 44.5%).

Outlook and guidance

• Q2 2025 sales expected in the SEK 950–1,050 million range.

• Full-year 2025 guidance reiterated: sales of SEK 3.9–4.3 billion and operating margin of 9.5–10.5%.

• Order backlog down 4% year-over-year, reflecting market caution amid geopolitical uncertainty.

• Profitability expected to remain stable, with continued focus on cost control and margin improvement.

• Growth anticipated in Security & Defence and Greentech; Communication and Medtech expected to remain weak.