Avtech Sweden (AVT) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 net sales, up 33.4% year-over-year, despite adverse currency effects.

• Net profit increased 22.8% compared to Q1 2024, with strong operational performance.

• Cash flow declined 16.7% due to delayed customer payments, which were received after the period.

• Over 2,000 aircraft now use AVTECH services, with further growth expected in 2025.

• Product development and sustainability initiatives continue, including collaborations with major airlines and research institutions.

Financial highlights

• Q1 2025 net sales: SEK 10.5M (Q1 2024: SEK 7.9M); highest quarterly revenue to date.

• Net earnings: SEK 3.7M (Q1 2024: SEK 3.0M); EPS: SEK 0.07 (Q1 2024: SEK 0.05).

• Operating margin: 34.7% (Q1 2024: 37.0%).

• Cash and cash equivalents: SEK 30.1M (Q1 2024: SEK 26.0M).

• Equity ratio: 92.8% (Q1 2024: 90.8%).

Outlook and guidance

• Strong foundation for continued growth in 2025, with new agreements and resource reinforcements.

• Revenue expected to increase significantly, but net profit growth will slow due to reinvestment in organization and product development.

• Additional agreements in the pipeline and ongoing test periods with airlines support positive revenue outlook.

• Board proposes a dividend of SEK 5.6M (SEK 0.10 per share) for 2025.