Luotea (LUOTEA) Q1 2025 earnings summary

Executive summary

• Profitability improved in Facility Services, with strong cash flow and a solid financial position in Q1 2025.

• Net sales for Q1 2025 were EUR 175.5 million, down 5.1% year-over-year, mainly due to weak construction sector and mild winter impacting snow removal services.

• Adjusted operating profit rose to EUR 2.7 million from EUR 0.0 million year-over-year.

• Efficiency program and preparations for partial demerger are progressing as planned.

• Net cash flow from operating activities after investments was EUR 6.6 million, a significant improvement from EUR -9.4 million in Q1 2024.

Financial highlights

• Free cash flow improved by EUR 16 million year-over-year in a seasonally slow quarter, reaching EUR 6.6 million.

• Net interest-bearing debt decreased by EUR 31.8 million year-over-year to EUR 148.5 million.

• Earnings per share improved to EUR 0.09 from EUR -0.02 year-over-year.

• Gross capital expenditure was EUR 3.8 million, down from EUR 11.1 million, due to deferral of investments.

• Adjusted EBITDA increased to EUR 16.2 million (EUR 13.8 million), with an adjusted EBITDA margin of 9.2% (7.5%).

Outlook and guidance

• Net sales for 2025 are expected to remain at the previous year's level; adjusted operating profit is estimated to be at the same level or better.

• Unchanged outlook despite high market uncertainty.