Nederman (NMAN) Q1 2025 earnings summary

Executive summary

• Orders received reached SEK 1,501m, a currency neutral decline of 1.8% year-over-year, with three of four divisions showing order growth and two achieving record orders despite a challenging macro environment.

• Strategic acquisition of Euro-Equip S.L. for approximately EUR 15 million, strengthening presence in foundry and metal recycling markets in Spain, Portugal, and Latin America.

• Continued investments in operational efficiency and innovation, including a new Innovation Center in Helsingborg and expansion of US ducting facility.

Financial highlights

• Net sales were SEK 1,406m, flat currency neutral compared to Q1 2024, with organic sales down 1.4% year-over-year.

• Adjusted EBITA was SEK 142.5m (margin 10.1%), down from SEK 174.0m (12.5%) in Q1 2024, impacted by currency effects and acquisition costs.

• Net profit was SEK 59.2m, down from SEK 90.2m, with earnings per share at SEK 1.69 (2.57).

• Cash flow from operating activities was SEK 15.3m, significantly lower than SEK 95.1m a year earlier, mainly due to higher working capital accumulation.

• Net debt increased to SEK 1,696.8m (1,886.3m), reflecting recent acquisitions and investment activity.

Outlook and guidance

• Demand remains slightly slower, with ongoing market and geopolitical uncertainty expected to impact customer investment decisions in coming quarters.

• Order backlog and strong digital and service offerings position the company for continued growth despite macro challenges.

• Volatility is expected in the next two quarters due to geopolitical uncertainty and tariffs.