VBG Group (VBG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 12% year-over-year to SEK 1,351.3 M, mainly due to reduced demand in North America and Europe, with the largest impact in Mobile Thermal Solutions, US transit bus, and European semi-trailers.

• Gross margins were maintained despite lower sales, attributed to efficiency improvements, cost control, and favorable product mix.

• Strategic acquisitions in Brazil (Italytec) and Sweden (Ledson Lights) broadened market presence and support long-term growth and diversification.

• The quarter began with supply chain challenges and weak demand but saw gradual sales improvement as it progressed.

• Sales outside Europe and North America grew by 25%, helping to balance the geographic footprint.

Financial highlights

• Consolidated sales fell to SEK 1,351 M from SEK 1,535 M, a 12% decrease year-over-year; organic growth was -12.9%.

• EBITDA margin was 13.1%, down from 16.9% in Q1 2024; EBITA totaled SEK 177.4 M.

• Cash flow from operating activities dropped to SEK 27.9 M from SEK 144.1 M a year earlier.

• Net debt position (adjusted for pensions and leases) was SEK 163 million at quarter-end; consolidated interest-bearing net debt increased to SEK 641.7 M.

• Earnings per share were SEK 4.58, down from SEK 7.83.

Outlook and guidance

• Order book remains stable, and management is cautiously optimistic for Q2 and beyond despite global trade tensions, tariffs, and macroeconomic headwinds.

• Modest price increases (low single-digit for off-road, mid-single-digit for bus segment) will be implemented from May 1, 2025, to offset higher input costs.

• No formal forecast provided for 2025.

• Targeting one to three acquisitions per year and continued investment in organic growth.