Infrea (INFREA) Q1 2025 earnings summary

Executive summary

• Net sales rose to SEK 410.9m (319.1), with 28.8% organic growth year-over-year, mainly driven by Mark & Anläggning.

• EBITA improved to SEK -40.5m (-43.5), including SEK 5.6m impairment of tangible assets and SEK 3.3m goodwill write-down for Mikaels Grävtjänst.

• Net result was SEK -38.2m (-38.8), with EPS at SEK -1.3 (-1.9).

• Strategic divestment and wind-down of Mikaels Grävtjänst expected to strengthen cash position by SEK 40m in Q2.

• Rolling 12-month net sales reached SEK 2,169.8m (2,077.9), up 4.4% organically.

Financial highlights

• EBITDA for Q1 was SEK -13.3m (-21.4), with a negative margin due to seasonality and impairments.

• Cash flow from operations was SEK -44.8m (-9.1), mainly due to increased working capital.

• R12 EBITA was SEK 33.2m (30.2), margin 1.5% (1.4%).

• R12 net result was SEK -7.4m (-8.0).

• Interest-bearing net debt at period end was SEK 256.2m (204.7), with net debt/EBITDA at 2.0x (1.7x).

Outlook and guidance

• Management targets EBITA margin above 6%, net debt/EBITDA below 1.5x, and dividend payout of ~30% of net profit.

• Cautious optimism for continued improvement in profitability, with focus on working capital and operational efficiency.

• Divestments and restructuring expected to have limited impact on profitability but positive cash effect.