Serstech (SERT) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased 40% year-over-year to KSEK 19,892, driven by strong orders from Singapore partner Kaiser-SGI and new product launches.

• EBITDA was KSEK 669 (3% margin), down from KSEK 1,368 last year, reflecting higher selling and personnel costs.

• EBIT was negative at KSEK -1,339, and net earnings were KSEK -1,287, with EPS at SEK -0.01.

• Initiated liquidation of Romanian subsidiary to reduce costs and centralize R&D in Lund.

• Raised KSEK 37,681 through a rights issue, strengthening liquidity and equity ratio to 83%.

Financial highlights

• Net sales: KSEK 19,892 (Q1 2025) vs. KSEK 14,174 (Q1 2024), up 40%.

• EBITDA: KSEK 669 (3% margin) vs. KSEK 1,368 (10% margin) last year.

• EBIT: KSEK -1,339 (-7% margin) vs. KSEK -522 (-4% margin) last year.

• Cash flow from operating activities: KSEK -3,140 vs. KSEK 1,627 last year.

• Cash and bank balances: KSEK 19,073 as of March 31, 2025.

Outlook and guidance

• Positive market trends expected to support sales growth, especially in Europe due to tariff uncertainties affecting U.S. competitors.

• Potential negative impact on U.S. sales in 2025 if tariffs are imposed; contingency plans include local production or inventory build-up in the U.S.

• Continued investment in sales, product development, and production to drive long-term growth.