BTS Group (BTS) Q1 2025 earnings summary

Executive summary

• Achieved a stable first quarter in 2025 despite macroeconomic volatility, with double-digit growth in Europe and successful integration of recent acquisitions, including Sounding Board and SEAC.

• AI solutions and platforms, such as Wonderway and Sounding Board, are driving innovation and operational efficiency, with $2 million in bookings and significant productivity gains.

• Strategic focus on resilient sectors and clients, with redirected sales efforts to industries expected to maintain investment amid uncertainty.

• Net sales increased to MSEK 647 from MSEK 619, with 3% currency-adjusted growth and 1% organic growth compared to Q1 2024.

• Profit after tax was MSEK 25, down from MSEK 53, but unchanged when excluding a one-time earn-out reversal in 2024.

Financial highlights

• Net sales increased 10% year-over-year, with profit rising from SEK 9.8 million to SEK 14.3 million.

• EBITA margin was 9.1% (9.5% in Q1 2024); EBITDA margin improved from 9.6% to 12.6% year-over-year.

• North America grew 3% in Q1, with margin dropping from 10.7% to 9.8% due to acquisition-related costs and increased use of external resources.

• BTS Other Markets grew 2%, mainly from the Siak acquisition, with a margin of 7% versus 7.5%.

• APG segment shrank 9% with a margin decline, attributed to smaller deal sizes and reduced commitments.

Outlook and guidance

• Outlook for 2025 remains unchanged, expecting EBITDA/EBITA to surpass 2024, with caution regarding currency volatility, especially the U.S. dollar.

• Other Markets expected to return to mid to high single-digit growth in Q2.

• AI and automation are projected to yield significant productivity gains and $5 million in cost savings through early 2026.

• Continued confidence in achieving both organic growth and higher margins by year-end, despite a slow start.