Careium (CARE) Q1 2025 earnings summary

Executive summary

• Growth achieved in all markets except Sweden, which was impacted by contract delays and lower upfront leasing revenue.

• Notable wins include a major stationary alarm order in France, first sales in Spain, and a 12-year Norwegian contract valued at SEK 24 million annually.

• Margins remained strong, supported by a one-time UK revenue recognition effect.

• Profit for the period dropped 47.4% to SEK 7.5 million, mainly due to negative currency effects and higher costs.

• B2C and assisted living frameworks identified as key future growth areas.

Financial highlights

• Organic sales declined 1.6% year-over-year (2.3% adjusted for currency); net sales SEK 207.4 million.

• Service sales rose 3.4% to SEK 160.3m, product sales fell 15.5% to SEK 47.1m.

• Gross margin improved to 44.5% from 42.9%, aided by a one-time UK effect.

• EBITDA was SEK 33.6m (margin 16.2%), EBIT SEK 16.6m (margin 8.0%), both down year-over-year due to higher costs.

• Cash flow from operations was SEK 19.3m, free cash flow at SEK -4.4m, impacted by higher taxes and investments.

Outlook and guidance

• Net sales, profitability, and free cash flow before acquisitions expected to increase in 2025 versus 2024.

• Softer first half anticipated due to Swedish market awaiting new framework; stronger second half expected.

• Focus on B2C expansion, assisted living frameworks, and targeted acquisitions.