NOVOTEK (NTEK) Q1 2025 earnings summary

Executive summary

• Net sales increased to SEK 120.1 million from SEK 117.3 million year-over-year, while operating profit declined to SEK 14.3 million from SEK 16.8 million.

• Order intake rose to SEK 158.1 million from SEK 135.8 million, reflecting continued market interest despite global uncertainty.

• The quarter was marked by delayed customer investment decisions due to macroeconomic uncertainty, but ongoing projects and deliveries remained unaffected.

Financial highlights

• Operating margin was 11.7% compared to 14.3% in the same quarter last year.

• Net income after tax was SEK 10.1 million, down from SEK 13.1 million year-over-year.

• Earnings per share were SEK 0.9, compared to SEK 1.1 in the previous year.

• Cash flow from operating activities was SEK 19.6 million, down from SEK 27.6 million.

• Liquidity at period end was SEK 150.7 million, up from SEK 119.9 million.

Outlook and guidance

• Strong underlying demand for digitalization and cybersecurity solutions, especially related to the EU NIS2 directive.

• Customer decision processes remain prolonged due to macroeconomic conditions.