HAKI Safety (HAKI) Q1 2025 earnings summary

Executive summary

• Net sales rose 9% year-over-year to SEK 263 M, driven by acquisitions; organic sales declined 6%.

• Adjusted EBITA fell to SEK 6 M from SEK 14 M, with operating profit at SEK 0 M (7 M prior year).

• Net result after tax was SEK -13 M (4 M prior year); EPS at SEK -0.48 (0.15).

• Acquisition of Trimtec finalized; new decentralized business area structure introduced post-quarter.

• Divestment of Landqvist Mekaniska Verkstad announced, expected to positively impact net debt in Q2.

Financial highlights

• Gross margin held at 35.4% (36.0% prior year), despite lower volumes in Scaffolding Systems.

• Cash flow from operating activities was SEK -36 M (-18 M prior year), impacted by lower results and increased working capital.

• Financial net debt increased to SEK 462 M (285 M prior year), mainly due to the Trimtec acquisition.

• Net financial income was SEK -17 M, affected by negative exchange rate effects.

• Adjusted EBITA margin dropped to 2.3% (5.8% prior year); operating margin at 0.0% (2.9%).

Outlook and guidance

• Management remains positive on long-term prospects, citing strong demand in core safety markets.

• Ongoing cost-saving and efficiency program in Scaffolding Systems aims to reduce costs by SEK 10-15 M annually.

• Group targets net sales of SEK 2,000 M by 2027 and adjusted EBITA margin above 10%.

• Potential new share issue under consideration to refinance the Trimtec acquisition.