Storskogen Group (STOR) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales reached SEK 7,940 million, down 5% year-over-year, mainly due to divestments, with organic growth at 1%.

• Adjusted EBITA was SEK 700 million, down 1% year-over-year, but margin improved to 8.8% from 8.4% last year.

• Margin expansion, strong rolling 12-month cash flow, and operational focus supported profit growth despite a seasonally softer quarter.

• Focus remains on cash flow, organic EBITDA/EBITA growth, and profitability, with scenario planning due to global economic uncertainty.

• Strategic groundwork enables readiness for resumed acquisitions, with a pipeline being built and initial add-on deals completed.

Financial highlights

• Net sales declined 5% year-over-year to SEK 7.9 billion, mainly due to a 6% negative impact from divestments; organic growth was 1%.

• Adjusted EBITA was SEK 700 million, margin at 8.8%; adjusted EBIT grew 5% to SEK 523 million; adjusted EPS rose 35% to SEK 0.13 per share.

• Net financials improved, supporting a 35% increase in adjusted pre-tax profit.

• Cash flow from operating activities was SEK 113 million; rolling 12-month operating cash flow was SEK 3.1 billion; capex/sales at 1.9%.

• Adjusted cash conversion (LTM) at 88%, well above the 70% target.

Outlook and guidance

• Q2 is expected to be seasonally stronger across business areas, with profitability in industry anticipated to recover as postponed projects are realized.

• Order intake and market activity improved in March and April, supporting a cautiously positive trend for Q2 and Q3.

• Focus remains on operational value drivers, organic EBITDA/EBITA growth, and cash flow performance.

• Acquisition activity anticipated to restart in the coming quarters.

• Profit growth target of 15% per year (organic and through acquisitions) up to 2027.