NTG Nordic Transport Group (NTG) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw two key acquisitions (DTK in Denmark, EDS & Rolls-Royce in the UK), strengthening Nordic and UK operations, while integration of German acquisitions continued amid market headwinds.

• Group net revenue grew 24.9% year-over-year to DKK 2,695 million, with organic growth of 4.9% and acquired growth of 19.2%.

• Adjusted EBIT increased 6.1% to DKK 121 million, but profit for the period declined 21.8% to DKK 61 million.

• German acquisitions underperformed due to a weak market, prompting accelerated integration and cost-saving initiatives.

• Full-year adjusted EBIT/EBITDA guidance updated to DKK 560–630 million, reflecting integration challenges and market headwinds.

Financial highlights

• Q1 2025 net revenue rose 24.9% to DKK 2,695 million; gross profit up 30.0% to DKK 602 million; gross margin at 22.3%.

• Adjusted EBIT increased 6.1% to DKK 121 million; operating margin declined to 4.5% from 5.3% year-over-year.

• Conversion ratio dropped to 20.1% from 24.6% year-over-year.

• Net interest-bearing debt (excl. IFRS 16) increased to DKK 881 million; leverage ratio at 2.6x EBITDA.

• Adjusted free cash flow was negative DKK 60 million, an improvement from negative DKK 110 million in Q1 2024.

Outlook and guidance

• Full-year 2025 adjusted EBIT/EBITDA guidance revised to DKK 560–630 million (previously DKK 575–650 million), reflecting flat road market activity and downside risk in Germany.

• Outlook includes all completed acquisitions and assumes stable currency rates.

• Air & Ocean division expected to be negatively impacted by increased US tariffs; improvement anticipated in H2 2025.

• Guidance range reflects high uncertainty; midpoint considered most likely outcome.

• No material one-off restructuring costs included in guidance; integration costs booked as special items.