Harju Elekter (HAE1T) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was €37.4m, down 20% year-over-year, but operating profit rose 186% to €2.8m and net profit surged 630% to €2.6m, driven by cost controls and favorable EUR/SEK exchange rate.

• Gross margin improved to 15.1% from 10.3% year-over-year, and EPS increased to €0.14 from €0.02.

• Despite revenue decline, the order book remains strong heading into the peak season, with management expecting 2025 to be a strong financial year.

Financial highlights

• Revenue: €37.4m (Q1 2024: €46.8m, -20%).

• Gross profit: €5.7m (Q1 2024: €4.8m, +17.2%), gross margin 15.1%.

• Operating profit (EBIT): €2.8m (Q1 2024: €1.0m, +186.4%), operating margin 7.5%.

• Net profit: €2.6m (Q1 2024: €0.4m, +630.2%).

• EBITDA: €3.9m (Q1 2024: €1.9m, +99.2%).

• EPS: €0.14 (Q1 2024: €0.02).

Outlook and guidance

• Management expects a strong 2025, supported by a robust order book and cost base aligned with expected volumes.

• Cautious customer sentiment and delayed orders persist due to global economic and political uncertainties.