Enea (ENEA) Q1 2025 earnings summary

Executive summary

• New CEO Teemu Salmi introduced, bringing 30 years of IT, telco, and cybersecurity experience, with a focus on profitable growth and strategic overhaul of the product portfolio.

• Operates in over 100 countries, serving over 200 customers, including 160+ CSPs and 70+ solution vendors, with a strong presence in telco and cybersecurity.

• Q1 highlights include major wins with Extreme Networks (SD-WAN), BeyondOne (Virgin Mobile Latin America), and STC (Saudi Arabia), and strong engagement at Mobile World Congress.

• Achieved 6–7% organic revenue growth in Q1 2025, totaling SEK 214 million, driven by double-digit growth in the Network segment, while Security remained stable.

• Approximately 68–70% of revenues are recurring, providing a stable foundation despite market volatility.

Financial highlights

• Net sales for Q1 2025 reached SEK 214 million, up 6.9–7% year-over-year (6% currency-adjusted).

• Adjusted EBITDA was SEK 52.6 million (24.6–25% margin), nearly flat compared to last year.

• Operating profit was SEK 1.6 million (0.7% margin), and profit after tax was SEK -18.8 million, with EPS at minus SEK 0.94.

• Operating cash flow was SEK 35.5–36 million; net debt at quarter-end was SEK 145 million.

• Gross margin was 72.5–77%, negatively impacted by SEK 9 million in currency translation differences.

Outlook and guidance

• 2025 guidance: continued growth in focus areas, EBITDA margin of 30–35%, and strong cash flow.

• Long-term ambition: double-digit growth in focus areas, EBITDA margin above 35%, and robust cash flows.

• Broader telecom recovery may be delayed by macroeconomic and trade-related uncertainties.