Novedo (NOVEDO) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 decreased by 2.4% year-over-year to SEK 648.8 million, with organic growth for equivalent units down 6.1%.

• EBITA dropped to SEK 25.4 million (from SEK 55.8 million), and EBITA margin fell to 3.9% (from 8.4%).

• Cash flow from operating activities improved significantly to SEK 73.0 million (from SEK 39.5 million).

• For the rolling twelve months, net sales increased 8.1% to SEK 3,010.8 million, but EBITA and EBIT margins declined.

• The market climate remains tough and cautious, impacted by geopolitical turbulence and weak construction economy.

Financial highlights

• Q1 2025 net sales: SEK 648.8 million (down 2.4% year-over-year).

• EBITA: SEK 25.4 million (down from SEK 55.8 million); EBITA margin: 3.9%.

• EBIT: SEK 10.5 million (down from SEK 41.5 million); EBIT margin: 1.6%.

• Profit after tax: SEK -89.9 million (from SEK -33.0 million); EPS: SEK -5.62 (from SEK -2.16).

• Cash and cash equivalents: SEK 675.5 million (up from SEK 238.6 million).

• Equity/assets ratio: 3.0% (down from 11.9%).

• Return on capital employed: 17.7% (up from 16.3%).

Outlook and guidance

• Management expects continued challenging and cautious market conditions in 2025, especially in the first half.

• Gradual improvement in demand anticipated with increased geopolitical clarity and more expansionary fiscal and monetary policy.

• All business segments expected to benefit from trends in renovation, infrastructure, and climate transition.

• Ongoing evaluation of acquisition opportunities in existing and new markets.