AQ Group (AQ) Q1 2025 earnings summary

Executive summary

• Net sales increased by 3% to SEK 2,290 million in Q1 2025, mainly driven by acquisitions despite a 5% organic decline.

• EBIT decreased by 4% to SEK 215 million, with profit after tax at SEK 166 million; earnings per share before dilution were SEK 1.81, down from SEK 2.01 last year.

• The group has maintained profitability every quarter since 1994, with a 14% EPS CAGR over the past decade.

• The Board proposes a dividend of SEK 1.60 per share, a 20% increase from last year.

• Acquisitions remain a key growth driver, with recent additions in Germany and the Czech Republic.

Financial highlights

• Net sales grew 3% year-over-year, with -5% organic growth, 0% currency effect, and +8% acquired growth.

• EBIT margin for Q1 2025 was 8.9%, above the 8% target for the ninth consecutive quarter.

• Profit after tax was SEK 166 million; operating cash flow reached SEK 244 million.

• Net cash position improved to SEK 253 million after acquisition payments.

• Equity ratio improved to 65% from 64% year-over-year.

Outlook and guidance

• The group targets >15% growth and >8% EBT margin, with a 10% organic growth goal and 5% acquired growth per year.

• Demand remains low in construction, trucks, buses, and agriculture, especially in Europe, but improved slightly at quarter-end.

• Electrification, railway, and defense segments show strong and growing demand.

• Management expects sequential margin improvement from Q2, especially in recently acquired units.

• No specific forecast for turnover or profit is provided; statements are forward-looking and outcomes may differ.