W5 Solutions (W5) Q1 2025 earnings summary

Executive summary

• Order intake surged 45% to SEK 130 million, with the order backlog reaching a record SEK 354 million, up 75% year-over-year.

• Doubled shareholder base since New Year's, reflecting increased market interest, with shareholders up 212%.

• Vision to become a leading global provider of sustainable defence technology, focusing on integration, training, and power, with a growing presence in export markets, notably Finland.

• Headquarters in Stockholm with operations across Sweden, Norway, and Finland, employing about 175 people.

• A successful directed share issue raised SEK 36.1 million, strengthening the cash position and enabling accelerated product development and strategic acquisitions.

Financial highlights

• Net sales for Q1 2025 were SEK 84.5 million, down 9.5% year-over-year, reflecting seasonal weakness and ongoing customer-funded development projects.

• EBIT for Q1 2025 was SEK -3.1 million (margin -3.7%), compared to SEK -1.5 million (-1.6%) in Q1 2024.

• Net profit improved to SEK -4.3 million from SEK -5.3 million year-over-year; EPS was SEK -0.27 versus SEK -0.79.

• Cash flow from operating activities was SEK -11.5 million, a significant improvement from SEK -21.4 million in Q1 2024.

• Order intake exceeded SEK 100 million, primarily from medium-sized contracts, with most to be delivered within the year.

Outlook and guidance

• Management targets SEK 1 billion in revenue and a 10% EBIT margin by 2027.

• Focus shifting from order intake to order delivery, with two-thirds of the order book scheduled for delivery in 2025 and 75% of Q1 order intake planned for delivery within the year.

• Organic growth above 20% targeted, complemented by growth through acquisitions to meet 2027 financial goals.

• No negative impact from geopolitical turbulence; local supply chain seen as a competitive advantage.

• Both customer- and self-funded development projects are anticipated to generate serial delivery revenue within the year.