Motion Display (MODI) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were 5.67 MSEK, down 43% year-over-year, with a net loss of -0.36 MSEK compared to a profit of 2.03 MSEK last year.

• Market uncertainty due to US tariff changes on Chinese imports led to paused US customer projects and a sharp drop in order intake.

• Only 0.5 MSEK of Q1 sales were to the US, completed before new tariffs took effect.

Financial highlights

• Gross profit excluding capitalized work fell 44% to 3.38 MSEK; EBITDA was 0.10 MSEK, down from 2.63 MSEK year-over-year.

• Net cash flow was 0.15 MSEK, with cash at period end at 0.54 MSEK, down from 5.18 MSEK last year.

• Inventory increased to 7.49 MSEK from 5.23 MSEK, aiming to secure critical components.

Outlook and guidance

• Uncertainty around US tariffs on Chinese goods is expected to continue impacting sales and order intake.

• Management is exploring relocating production to the US to mitigate tariff risks.

• Board warns of potential financing shortfall within 12 months if market conditions persist.