SinterCast (SINT) Q1 2025 earnings summary

Executive summary

• Revenue declined 16% year-over-year to SEK 27.1 million, mainly due to a terminated high-volume program and softer commercial vehicle sales.

• Operating result rose 38% to SEK 10.2 million, with margin improving to 37.7% from 23.0%, driven by cost reductions and currency gains.

• Earnings per share increased 24% to SEK 1.08.

• Cashflow from operations was SEK 12.2 million, down from SEK 15.2 million, with liquidity at SEK 33.2 million and no loans.

• New series production started at FAW (China) and MAN (Germany); first Indian installation secured with Saroj Group.

Financial highlights

• Recurring revenue accounted for 98.5% of total, decreasing 13% year-over-year.

• Gross margin remained high at 69.3% (70.1% last year).

• Result for the period after tax was SEK 7.6 million, up from SEK 6.2 million.

• Return on equity improved to 6.7% from 5.3%.

• Solidity at 85.4%, with shareholders' equity of SEK 108.7 million.

Outlook and guidance

• Full-year outlook unchanged; ramp-up in series production and installations expected in H2 2025.

• Target to exceed SEK 11.4 million in installation revenue for 2025.

• Five million Engine Equivalent milestone targeted before end of 2026.

• Delays in EPA and Euro 7 emissions legislation expected to extend demand for internal combustion engines, supporting CGI penetration growth to over 80% by decade's end.