Lamor (LAMOR) Q1 2025 earnings summary

Executive summary

• Orders received in Q1 2025 rose 71.9% year-over-year to EUR 27.6 million, with major contracts from Kuwait (EUR 8 million) and Italy (EUR 5 million), and growth across all market areas due to improved sales efficiency and organizational restructuring.

• Profitability improved, with adjusted operating profit rising to EUR 1.7 million (up 259% year-over-year), driven by project recognition from Kuwait and NCEC, and a higher share of equipment sales with strong margins, notably from the NEOM project.

• Revenue declined 20.3% year-over-year to EUR 19.0 million, mainly due to the completion of the NCEC project in Saudi Arabia and maintenance-related revenue delays in Kuwait.

• Strategic focus on localizing operations in Saudi Arabia, including a new service center and local manufacturing, to strengthen regional presence and support the installed base.

• Continued emphasis on operational efficiency, project management, and global partnerships to support growth and customer trust.

Financial highlights

• Adjusted EBIT margin improved to 9.1% (Q1 2024: 2.0%), supported by a favorable sales mix and high-margin NEOM project deliveries.

• Order intake grew to EUR 27.6 million (Q1 2024: EUR 16.0 million), reversing the previous trend and strengthening the order backlog to EUR 98.9 million.

• Net working capital reduced by 27.7% year-over-year to EUR 55.8 million, mainly due to lower contract assets tied to the Kuwait project.

• Net cash flow from operations improved to EUR -5.6 million from EUR -13.1 million year-over-year.

• Investments in Q1 2025 totaled EUR 5.8 million, mainly for the Kilpilahti plant.

Outlook and guidance

• 2025 guidance unchanged: Revenue and adjusted operating profit expected to increase versus 2024, with profitability improvements from operational enhancements expected to have greater impact in 2026.

• Revenue is anticipated to be lower in H1 but exceed the comparison period in H2, with strong order accumulation required in H1.

• Guidance assumes limited revenue from plastic recycling in 2025.

• Long-term targets (by 2027): Revenue EUR 170 million, adjusted EBIT margin >14%.

• Market volatility and uncertainty have increased, but no material impact on demand or customer behavior observed yet.