Latour (LATO) Q1 2025 earnings summary

Executive summary

• Net asset value per share decreased by 1.2% to SEK 213, underperforming the SIXRX index which fell 0.2%.

• Industrial operations showed strong order intake (+21%) and net sales growth (+13% to SEK 6,884m), with five acquisitions completed.

• Portfolio of 10 listed companies reported stable Q1 results, but investment portfolio total return was -2.7% in Q1 2025.

• Wholly owned operations and part-owned holdings continued to contribute to group performance.

• Profit after tax was SEK 812m (down from SEK 1,994m year-over-year), EPS at SEK 1.25 (3.11).

Financial highlights

• Order intake up 21% (10% organic); net sales up 30% year-over-year in wholly owned operations.

• Adjusted operating profit for wholly owned operations reached SEK 899 million; operating margin at 13.1%.

• Net asset value per share at SEK 213; share price at SEK 272, a 28% premium.

• Consolidated net debt increased to SEK 15.4 billion due to acquisitions.

• Cash flow from operating activities was SEK 436m (630m), with total cash flow at SEK -921m.

Outlook and guidance

• Entering Q2 and Q3 with a strong order backlog, supporting stable future net sales.

• Growth expected to continue both organically and through acquisitions.

• Management remains confident in passing on tariff-related costs to customers and navigating uncertainties.

• Financial targets remain: annual growth >10%, operating margin >15%, and return on operating capital >15%.