Bravida (BRAV) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales declined 5% year-over-year to SEK 6.888 billion, mainly due to selective project intake and a challenging market, with negative organic growth offset by acquisitions and currency effects.

• EBITA/EBITDA increased to SEK 307 million, with margin improvement to 4.5% from 4.0% year-over-year, and all countries showing margin gains.

• Order backlog grew by SEK 658 million, with increases in Norway, Denmark, and Finland, but a decline in Sweden; order intake stable overall.

• Service business remains stable, representing close to 50% of revenue, while installation business faces ongoing challenges and regional disparities.

• Strong cash flow and balance sheet, with net debt/EBITDA at 1.0x and cash conversion at 101–201%.

Financial highlights

• Net sales: SEK 6,888 million (down 5% year-over-year); organic growth -6%, acquisitions +2%, currency -1%.

• EBITA/EBITDA: SEK 307 million (up 4% year-over-year); margin 4.5% (up from 4.0%).

• Operating cash flow: SEK 280 million, impacted by higher tax payments.

• Cash and cash equivalents at SEK 608 million; net debt at SEK 2,156 million.

• Cash conversion reached 101–201%, up from 90% last year.

Outlook and guidance

• Service activity expected to remain stable; installation market faces ongoing challenges with regional variation.

• Management expects 2025 to be difficult but believes the market has bottomed out, with easier comparisons ahead and brighter outlook for 2026–2027.

• Margin improvement prioritized over volume growth; project selectivity and cost control to continue.

• Full-year EBITDA margin in Denmark expected to approach or slightly exceed 5%; stable or slightly improved margins anticipated in Sweden.

• External forecasts predict 4–6% installation volume growth in the Nordics for 2025–2026, with Sweden lagging.