Sweco (SWEC) Q1 2025 earnings summary

Executive summary

• Net sales rose to SEK 8,066 million in Q1 2025, up 4% year-over-year, with organic growth in 7 of 8 business areas and EBITA up 10% to SEK 900 million, margin improving to 11.2%.

• Six out of eight business areas improved EBITA, driven by higher fees and billing ratios; seven out of eight reported positive organic growth.

• Strong financial position with net debt reduced to SEK 1,607 million and net debt/EBITDA at 0.5x.

• Order backlog and inflow remained stable, reflecting new project wins and a key acquisition in Finland.

Financial highlights

• Organic growth of 4% adjusted for calendar effects; acquired growth 1%; currency effects neutral.

• EBITA increased to SEK 900 million (793), EBITA margin reached 11.2% (up from 10.3%), and EPS to SEK 1.79 (1.55).

• Net debt at SEK 1,607 million, leverage reduced to 0.5x (down from 1.1x), supported by improved working capital and lower M&A outflows.

• Cash flow from operating activities was SEK 242 million; available liquid assets totaled SEK 4,848 million.

• Dividend proposal increased to SEK 3.30 per share, total not exceeding SEK 1,199 million.

Outlook and guidance

• Continued focus on operational efficiency, long-term margin improvements, and capturing growth opportunities.

• Market demand expected to remain mixed, with ongoing monitoring of geopolitical and economic uncertainties.

• Increased pace in acquisitions planned, supported by a strong M&A pipeline and robust liquidity.

• Well-positioned in growth areas such as energy transition, infrastructure, and sustainability.