hGears (HGEA) Q1 2025 earnings summary

Executive summary

• Q1 2025 results were solid despite ongoing market weakness, with e-Tools showing growth, e-Mobility stable, and e-Bike segment impacted by continued destocking and industry contraction.

• Structural adjustments, cost-saving initiatives, and disciplined cost measures improved profitability and resilience, with a focus on cash preservation.

• Balance sheet remains stable, and 2025 guidance is reaffirmed.

• Geopolitical volatility, trade uncertainty, and weak consumer demand remain key external risks.

Financial highlights

• Group revenue declined 3.5% year-over-year to EUR 25.1 million, with adjusted gross profit at EUR 11.7 million and gross margin up 190 bps to 46.7%.

• Adjusted EBITDA improved to EUR 0.7 million (2.6% margin), up from EUR 0.5 million a year ago; prior year included a EUR 0.4 million one-off gain.

• Net debt at EUR 13.8 million; equity ratio at 47.2%; cash and cash equivalents of EUR 14.3 million.

• Free cash flow was EUR -2.2 million, compared to EUR -0.9 million in Q1 2024.

Outlook and guidance

• 2025 guidance reiterated: group revenues EUR 80–90 million, adjusted EBITDA EUR -4 to -1 million, free cash flow EUR -6 to -2 million.

• No short-term recovery expected; 2025 is seen as the trough year for e-bike production, with recovery anticipated in the medium term.

• Focus remains on cash preservation and operational efficiency.