Scandinavian Enviro Systems (SES) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 were MSEK 7.4, a sharp decline from MSEK 57.6 in Q1 2024, mainly due to lower milestone payments from the joint venture with Michelin and Antin Infrastructure Partners.

• Earnings after tax were MSEK -23.4, compared to MSEK 30.8 in the same quarter last year; EPS before dilution was SEK -0.03 (0.04).

• Significant progress was made in constructing the Uddevalla recycling plant, with completion expected in Q2 2025 and commissioning in Q4 2025.

• A partially guaranteed rights issue of approximately SEK 298 million was approved to fund ongoing expansion and strengthen internal expertise.

Financial highlights

• Operating loss for Q1 2025 was MSEK -23.9, down from a profit of MSEK 30.1 in Q1 2024.

• Cash flow after investments was MSEK -43.9, compared to MSEK -5.8 in Q1 2024.

• Investments in fixed assets totaled MSEK 35.7, mainly for technical platform design and joint venture shares.

• Cash at period end was MSEK 31.2, down from MSEK 208.8 a year earlier.

Outlook and guidance

• The Uddevalla plant is on track for full completion in Q2 2025, with hot commissioning in Q4 2025 and PAC expected by mid-2026.

• Proceeds from the rights issue will fund factory completion and technology development, with expectations for improved financing terms post-PAC.

• Long-term goal is to reach an annual recycling capacity of 1 million tons, prioritizing investments in technology and expansion.