LU-VE (LUVE) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales declined 4.6–5.5% year-over-year, mainly due to project delivery postponements, but adjusted EBITDA margin held at 13.5%, in line with Q1 2024.

• Order book reached €210.4M, up 24.6% versus Q1 2024 and 20.8% from December 2024, indicating strong future demand.

• Operational improvements and cost control supported steady margins despite lower volumes.

• Strategic focus on order intake, US capex for datacenter and industrial cooling, and ongoing operational consolidation.

• Net profit was €7.8M (5.8% margin), down from €11.0M in Q1 2024; adjusted net profit was €8.2M (6.1% margin).

Financial highlights

• Q1 2025 sales: €135.3M, down from €141.9M in Q1 2024; adjusted EBITDA: €18.3M (13.5% margin); adjusted net income: €9.0M (6.7% of sales).

• Net financial debt reduced to €104.0M (NFD/EBITDA LTM: 1.3x vs 1.7x in Q1 2024).

• Cash and cash equivalents increased to €284.2M from €271.2M at year-end 2024.

• LTM net cash generation adjusted: €64.1M, up from €48.5M in Q1 2024.

• Cash flow from operations improved 1.2% to €17.6M (13.0% of sales).

Outlook and guidance

• Highest order book in company history and strong project pipeline support confidence in achieving year-end sales targets.

• Sales are expected to accelerate in H2 2025, supported by anticipated market demand recovery.

• Focus on datacenter and industrial projects, automation, supply chain, and cost optimization.

• Anticipated market recovery in heat pumps and nuclear applications from H2 2025.

• Short-term uncertainty remains high due to macroeconomic volatility and tariff wars, especially affecting large projects.