Wall to Wall Group (WTW-A) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a seasonal dip with net sales declining 9.7% year-over-year, mainly due to seasonality and customer caution in relining services, while flushing remained stable and energy efficiency services saw increased interest.

• Market stabilization and recovery are anticipated over the year, with improved finances among key customer groups expected to support a turnaround in relining and energy efficiency-related services.

• Major new contracts and a progressing partnership with Trelleborg are supporting growth and a unified brand strategy.

• Full-year outlook remains unchanged, with expectations for significantly improved adjusted EBITA in 2025.

• Continued focus on reducing indirect costs and strengthening gross margin through efficiency and collaboration.

Financial highlights

• Net revenue for Q1 2025 was SEK 204.1m, down from SEK 238.1m in Q1 2024, representing a 9.7% decline year-over-year.

• Adjusted EBITA for Q1 2025 was SEK -1.4m, compared to SEK 10.8m in Q1 2024; LTM adjusted EBITA was SEK 26.0m, down from SEK 38.2m.

• Gross margin for Q1 2025 was 32.3%, down 4.1 percentage points year-over-year, mainly due to underperforming relining units.

• Net earnings were SEK -31.1m, compared to SEK 4.2m in Q1 2024; EPS was SEK -2.30 (0.30).

• Cash position at quarter-end was SEK 81.6m, with financial net debt of SEK 202.1m.

Outlook and guidance

• Adjusted EBITA is expected to improve considerably in 2025, driven by market recovery, cost savings, and efficiency gains.

• Indirect cost target of approximately SEK 180m (20% of net sales) is expected to be reached in 2025.

• Ongoing actions, including material cooperation with Trelleborg, are expected to strengthen gross margin going forward.

• Flushing services are performing well and expected to grow via new contracts and geographic expansion.

• Market is stabilizing, with postponed real estate investments expected to drive recovery in pipe relining and energy-saving solutions.