Nolato (NOLA) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were SEK 2,453 million, flat year-over-year or down 1% in constant currency, with Medical Solutions growing and Engineered Solutions declining.

• Operating profit (EBITA) increased 14% to SEK 271 million, with the EBITA margin rising to 11.0% from 9.7%.

• Medical Solutions accounted for 57% of sales, Engineered Solutions 43%; Medical saw growth, while Engineered Solutions faced lower automotive sales but strong materials growth.

• Profit after tax increased to SEK 199 million, and earnings per share rose to SEK 0.74.

• Strategic price and cost adjustments, along with supply chain efforts, drove margin improvements.

Financial highlights

• EBITA margin improved by 1.3 percentage points to 11.0% year-over-year, with EBITA at SEK 271 million, up 14%.

• Earnings per share rose to SEK 0.74; return on capital employed increased to 12.7%.

• Net financial liabilities/EBITDA at 0.5x, indicating strong financial flexibility.

• Equity/assets ratio improved to 59% (from 57%).

• Cash flow from operating activities was SEK 135 million, stable year-over-year.

Outlook and guidance

• Margin improvements are expected to be sustainable, with further gradual improvement in U.S. Medical margins anticipated over the next 1–1.5 years.

• New financial targets: annual organic growth above 8%, EBITA margin above 12%, and return on capital employed above 15% over a business cycle.

• Full-year CapEx expected at SEK 850 million; effective tax rate forecasted at 21–22%.

• Management highlights flexibility, global production, and strong financial position as enablers for future growth and acquisitions.

• Geopolitical tensions and potential global trade war present uncertainties, but current direct impact is limited.