Svedbergs Group (SVED) Q1 2025 earnings summary

Executive summary

• Net sales grew 4.3% year-over-year to SEK 596 million, with organic growth of 3.5% and positive currency impact.

• EBITA reached SEK 94 million, margin 15.7%, the highest since 2016 and above long-term targets.

• Free cash flow turned positive at SEK 51 million, compared to negative SEK 58 million in Q1 2024.

• Strong performance in Roper Rhodes, Thebalux, and Macro Design segments.

• SBTi approval for Net Zero targets advanced sustainability efforts.

Financial highlights

• Net sales: SEK 596 million (SEK 572 million), up 4.3% year-over-year; organic growth 3.5%.

• EBITA: SEK 94 million (SEK 84 million), margin 15.7% (14.6%).

• Free cash flow: SEK 51 million (SEK -58 million).

• Net debt reduced to SEK 629 million from SEK 855 million year-over-year.

• Gross margin remained strong at 47.0%.

Outlook and guidance

• Solid organic growth expected to continue, supported by a robust decentralized business model.

• Management expects gradual recovery in the Nordic market and stable demand in the UK and Netherlands.

• Stabilized Nordic markets and strong brand performance underpin positive outlook.