HANZA (HANZA) Q1 2025 earnings summary

Executive summary

• Net sales rose 6% to SEK 1,326 million in Q1 2025, driven by the Leden acquisition and resumed organic growth in legacy operations, despite negative organic growth overall.

• Adjusted operating profit reached SEK 97 million, with margin improving to 7.3% from 5.3% in Q1 2024.

• Leden acquisition completed and integrated, expanding capacity, customer base, and presence in Finland and Estonia.

• New assembly hall opened in Töcksfors, Sweden, and optimization projects continued in Poland and other regions.

• Launched HANZA 2025 strategy and the LINX market program, targeting growth, operational efficiency, and new business in Germany.

Financial highlights

• Q1 sales exceeded SEK 1.5 billion pro forma with Leden; reported net sales were SEK 1,326 million, up 6% year-over-year.

• Adjusted operating margin improved to 7.3% (from 7.1% in Q4 and 5.3% a year ago); EBITDA reached SEK 138 million (104), margin 10.4% (8.3%).

• Adjusted EPS after dilution was SEK 1.14 (0.68); reported EPS after dilution was SEK 0.90 (0.77).

• Operating cash flow improved to SEK 68 million (31), with cash flow from operations on a rolling 12-month basis about SEK 600 million.

• Net debt/EBITDA at 2.3x, below the 2.5x target; equity ratio at 34%.

Outlook and guidance

• Confident in achieving the 8% operating margin target in 2025, driven by new customers, operational synergies, and efficiency improvements.

• Sales target of SEK 6.5 billion for the year remains, with some additional activities needed due to delayed LEDEN consolidation.

• Organic growth in legacy operations resumed at quarter-end and is expected to continue.

• Preparing for "HANZA 2028" to drive the next phase of growth and operational performance.

• CapEx expected to remain low for the rest of 2025, with no major expansion investments planned.