Seafire (SEAF) Q1 2025 earnings summary

Executive summary

• Net sales declined 5% year-over-year to SEK 207 million in Q1 2025, with all of the decrease being organic; half of subsidiaries improved profit levels despite market volatility.

• Adjusted EBITA remained stable at SEK 6 million, with a margin of 3%, while EBITA improved to SEK 6 million from SEK 5 million last year.

• Gross margin improved by two percentage points to 48%, driven by pricing, procurement, and business mix changes.

• Cash flow from operating activities was SEK -22 million, impacted by inventory build-up and a SEK 14 million tax deferral repayment.

• CFO Jacob Persson announced his departure, effective in Q3 2025; recruitment for a successor has started.

Financial highlights

• Net sales: SEK 207 million, down from SEK 219 million year-over-year; organic growth -5%.

• Adjusted EBITA: SEK 6 million (margin 3%), unchanged from Q1 2024.

• EBITA: SEK 6 million (margin 3%), up from SEK 5 million (margin 2%) last year.

• Operating profit (EBIT): SEK 0 million, compared to SEK -1 million in Q1 2024.

• Basic and diluted EPS: SEK -0.17, compared to SEK -0.12 year-over-year.

• Cash flow from operating activities: SEK -22 million, versus SEK -1 million last year.

Outlook and guidance

• Market conditions remain uncertain, with no signs of recovery in order intake; cautious optimism for improved activity but timing and magnitude are unclear.

• Focus remains on improving gross margin, profitability, and cash flow, with ongoing efforts in pricing, procurement, and working capital management.

• Debt reduction and improved Net Debt/EBITDA ratio are key priorities.