Momentum Group (MMGR) Q1 2025 (Q&A) earnings summary

Executive summary

• Revenue grew 11% year-over-year to SEK 735 million in Q1 2025, mainly driven by acquisitions amid a challenging global environment and subdued demand.

• EBITA increased 1% to SEK 76 million, with a margin of 10.3%, while net profit reached SEK 44 million and earnings per share remained at SEK 0.85.

• Strong cash flow from operating activities was maintained, supported by a high pace of acquisitions and financial stability.

• Direct effects from tariffs are limited due to a predominantly Nordic business and minimal US trade exposure, with no direct impact from trade turmoil.

• Four acquisitions were completed in Q1, adding SEK 140 million in annual revenue, with a further Norwegian acquisition post-period.

Financial highlights

• Q1 2025 revenue increased by 11% to SEK 735 million, EBITA rose 1% to SEK 76 million, and net profit was SEK 44 million.

• EBITA margin for Q1 was 10.3% (down from 11.3%), and operating margin was 8.3% (down from 9.8%).

• Cash flow from operating activities was SEK 92 million, and available cash and cash equivalents stood at SEK 787 million.

• Rolling 12-month revenue rose 20% to SEK 2,947 million, with EBITA up 15% to SEK 323 million.

• Return on working capital (EBITA/WC) was 58%, and equity/assets ratio stood at 33%.

Outlook and guidance

• The group remains optimistic about continued acquisition-driven growth, supported by a strong financial position and decentralised structure.

• Customers are showing increased caution, particularly those with higher CapEx, but no widespread cancellation of service business or deals.

• The company maintains its financial target of EBITA growth above 15% per year.

• Market uncertainty persists due to geopolitical tensions, tariffs, inflation, and currency volatility, but action plans are in place for potential slowdowns.