Karnell Group (KARNEL) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 performance with net sales up 26% to SEK 359 million and EBITA up 92% to SEK 38.3 million, driven by both organic and acquired growth.

• All business units contributed positively to organic growth, with a strengthened portfolio from recent acquisitions.

• Maintained low leverage (net debt/EBITDA at 1.0x) and robust cash flows, positioning well for continued M&A activity.

Financial highlights

• Net sales increased 26% year-over-year to SEK 359 million, with organic growth of 8%.

• EBITA margin improved to 10.7% from 7.0% last year.

• Cash flow from operating activities was SEK 13.3 million for the quarter, up from SEK 12.3 million, and up 28% on a 12-month rolling basis.

• Net profit after tax was SEK 19.7 million, with EPS after dilution at SEK 0.36.

• Net debt at SEK 229 million, leverage at 1.0x (2.1x including lease and earnout liabilities).

Outlook and guidance

• Early signs of market stabilization and easing interest rates observed, but global uncertainty remains due to geopolitical risks and potential trade tensions.

• Cautiously optimistic outlook, with focus on operational excellence, disciplined growth, and long-term value creation.

• Strong M&A pipeline and proven acquisition model support continued growth strategy.