Tempcon (TEMPCON) Q1 2025 earnings summary

Executive summary

• Net sales rose 5.1% year-over-year to SEK 759.2 million, with 2.6% organic growth, driven by B2C deliveries and new contracts in forwarding.

• EBITDA margin excluding items affecting comparability was 7.1%, slightly down from 7.6% last year.

• Transition to outsourced production advanced as planned, reducing in-house costs and increasing contracted haulier expenses.

• SEK 550 million in secured corporate bonds were issued, refinancing previous bank and shareholder loans.

• Major customer contracts were consolidated and haulage operations outsourced post-quarter, aligning with strategic goals.

Financial highlights

• Net profit for Q1 2025 was SEK 8.4 million, up from SEK 8.1 million in Q1 2024.

• Cash flow from operating activities was SEK 13.8 million, down from SEK 52.4 million last year due to tax payments and prior year working capital effects.

• Net investments totaled SEK -40.7 million, mainly for new gas-powered vehicles.

• Net debt increased to SEK 662.1 million, reflecting the new bond issuance and repayment of previous loans.

• Equity decreased to SEK 55.2 million from SEK 284.0 million, following an extraordinary dividend to repay shareholder loans.

Outlook and guidance

• Strong commercial activity continues, with new contracts worth approximately SEK 100 million in annual revenue secured for future periods.

• The company expects to offset labor cost increases from new collective agreements through index-based price adjustments.

• Ongoing transition to outsourced production is expected to further improve operational efficiency.