Humana (HUM) Q1 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of profitability improvement, with adjusted EBIT up 8% year-over-year and strong organic growth in Norway; Sweden saw efficiency gains and Finland completed a key divestment.

• Net revenue increased by 5% to SEK 2,533m, with operating profit up 64% to SEK 143m and adjusted operating profit up 8% to SEK 108m.

• Divested Finnish elderly care units for EUR 25m, supporting cash flow and reducing leverage.

• Strong cash flow enabled net debt reduction to SEK 1,306m and share repurchases.

• Maintained a rolling 12-month adjusted operating margin above 5% for the third consecutive quarter.

Financial highlights

• Revenue grew 5% year-over-year to SEK 2,533m; total growth rate reached 8%.

• Adjusted EBIT margin improved to 5.1% for Q1, up from 4.6% a year ago.

• Free cash flow for the last 12 months was SEK 523m (excluding IFRS 16).

• Share buybacks totaled SEK 57m at an average price of SEK 45.13 per share.

• Equity/assets ratio increased to 32% from 29% year-over-year.

Outlook and guidance

• Efficiency and consolidation programs to continue, with cost-cutting in Sweden expected to generate annual savings of SEK 35m from late 2025 and SEK 65m by end of 2026.

• Focus on organic growth, pipeline development, and M&A in targeted areas.

• Investments in digital infrastructure and system support are ongoing, with savings expected in the second half of 2025.

• Expecting stabilization and potential improvement in personal assistance customer flow during the year.

• Continued investment in higher-margin segments such as disability and child welfare services.