Kreate Group (KREATE) Q1 2025 earnings summary

Executive summary

• Order backlog increased by 28% from year-end and 22.9% year-over-year to EUR 225.7 million, with strategic wins in Finland and Sweden and Swedish revenue up 15% to EUR 7.5 million.

• Q1 2025 revenue declined 3.6% year-over-year to EUR 52.4 million, with EBITA margin at 0.1% (EUR 0.1 million), reflecting a seasonally weak quarter.

• Free cash flow from operating activities improved to EUR 6.0 million, driven by better net working capital management.

• Swedish operations expanded, now accounting for EUR 7.5 million in revenue (up 15%) and EUR 20 million of the order backlog.

• Full-year revenue and earnings expected to be weighted to the second half.

Financial highlights

• Order backlog at EUR 225.7 million, up 27.8% from Q4 2024 and 22.9% year-over-year.

• Revenue for Q1 2025 was EUR 52.4 million, down from EUR 54.4 million in Q1 2024; Swedish revenue EUR 7.5 million (up 15%).

• EBITA was EUR 0.1 million (0.1% margin), compared to EUR 0.3 million (0.5%) a year earlier; earnings per share improved to EUR 0.01 from -0.06.

• EBITDA reached EUR 1.7 million (3.2% margin), up from EUR 1.6 million (3.0%) in Q1 2024.

• Free cash flow: EUR 6.0 million, up from -3.1 million.

Outlook and guidance

• 2025 revenue is projected at EUR 290–310 million (2024: EUR 275.5 million), with EBITA expected to rise to EUR 9–11 million (2024: EUR 8.8 million).

• Guidance is based on the strong order backlog and anticipated conversion of development-phase projects.

• Market and activity levels expected to strengthen toward year-end, with earnings weighted to H2.

• Market outlook is improving short-term and positive long-term, supported by government transport investments and megatrends like urbanization and green transition.