Fasadgruppen Group (FG) Q1 2025 earnings summary

Executive summary

• Implemented a flatter organizational structure and new management team to enhance transparency and efficiency.

• Net sales rose 12.2% year-over-year to SEK 1,173.2 million, driven by acquisitions, despite a 10.3% organic decline due to weak new build activity.

• Order backlog reached a record SEK 4,039.8 million, up 31% year-over-year, with 4.3% organic growth, mainly from Swedish entities and renovation demand.

• Adjusted EBITA/EBITDA and margins improved significantly year-over-year, with Clear Line performing strongly and reported as a separate segment.

• Focus remains on profitability, deleveraging, and operational efficiency through 2025.

Financial highlights

• Adjusted EBITA/EBITDA reached SEK 77 million (margin 6.5%) versus SEK 20 million (1.9%) in Q1 last year; Clear Line contributed SEK 61.2 million.

• Net sales increased 12.2% year-over-year, but organic sales declined 10.3%.

• Operating cash flow for Q1 was negative at SEK -31.7 million, impacted by delayed payments related to the Clear Line acquisition.

• Net debt/adjusted EBITDA pro forma at 3.25x, above the target of 2.5x; interest-bearing net debt increased to SEK 2,291.4 million.

• One-off GBP 3 million payment related to Clear Line acquisition affected cash flow.

Outlook and guidance

• Too early to predict full-year performance due to ongoing market uncertainty, especially in new builds.

• Priorities for 2025-2028 include improving profitability, reducing leverage, and pursuing organic and acquisitive growth in the Nordics and UK.

• Focus for 2025 is on profitability, cash flow, and deleveraging; acquisition pace to be more restrained.

• Positive signs in renovation demand and public tenders, especially in Sweden and Finland; UK market robust for fire prevention projects.

• Long-term goal: SEK 10 billion in sales and at least 10% EBITA margin by 2028.