NOTE (NOTE) Q1 2025 earnings summary

Executive summary

• Q1 was marked by ongoing market uncertainties, a slower-than-expected recovery, and a 5% organic sales decline, with net sales at SEK 1,003 million, in line with expectations.

• Operating profit reached SEK 93 million, with adjusted operating profit at SEK 100 million, reflecting restructuring costs in the UK; profitability and cash flow were strong, with record quarterly cash flow of SEK 178 million.

• 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.

• The company remains optimistic about turning negative growth into positive growth during the year, supported by strong performance in Western Europe and improving conditions in other regions.

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

Financial highlights

• Q1 sales reached SEK 1,003 million, slightly below guidance of SEK 1,025 million.

• Operating margin was 9.2%, with adjusted margin at 10.0%, in the mid of the 10% guidance range.

• Record cash flow of SEK 178 million for the quarter, driven by ongoing inventory reduction.

• Equity to asset ratio at quarter-end was 49.9%, with available cash and credit facilities at SEK 793 million.

• Net cash position of SEK 34 million, excluding IFRS 16 lease liabilities.

Outlook and guidance

• Expectation to gradually turn negative growth into positive growth during the year, despite ongoing uncertainties.

• Q2 sales expected in the SEK 950–1,050 million range, with operating margin guidance between 9.5-10.5%.

• 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.

• Growth anticipated in security, defense, and greentech segments; communication and medtech expected to remain weak.