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, resulting in an 11.2% margin.

• Six out of eight business areas reported EBITA improvements, driven by higher fees and improved billing ratios.

• 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.

• Efficiency measures and restructuring were initiated in Sweden, Finland, and Norway to adapt to market conditions.

Financial highlights

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

• EBITA increased to SEK 900 million (793), EBIT to SEK 891 million (778), and EPS to SEK 1.79 (1.55) compared to Q1 2024.

• Net debt/EBITDA improved to 0.5x (1.1x), and net debt decreased to SEK 1,607 million.

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

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

Outlook and guidance

• Focus remains on operational efficiency, long-term margin improvements, and capturing growth opportunities.

• Continued monitoring of market uncertainty, with readiness to act as needed.

• Aim to increase the pace of acquisitions, supported by a strong M&A pipeline.

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