paragon GmbH & Co KGaA (PGN) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales stable at €29.3 million, matching Q4 2024 but down 28.3% year-over-year due to lower customer call-offs and divestiture of the starter battery business.

• EBITDA margin improved to 15.4% from 10.1% year-over-year, exceeding the 2024 full-year operating margin.

• Net income turned positive at €0.6 million (EPS €0.14) versus a loss of €0.5 million (EPS -€0.11) in Q1 2024.

• Improvement measures implemented in 2024 are delivering results; core profitability is sustainable.

• Consumer Products division yet to contribute; initial sales expected in Q2 2025.

Financial highlights

• Revenue: €29.3 million (Q1 2025) vs. €40.9 million (Q1 2024), -28.3% year-over-year.

• EBITDA: €4.5 million, up 9.4% year-over-year; EBIT: €2.2 million, up 135.4% year-over-year.

• Gross margin rose to 60.7% from 47.1% year-over-year.

• Operating cash flow: €0.5 million, up from €0.3 million year-over-year.

• Free cash flow: -€1.2 million, down from -€1.1 million year-over-year.

Outlook and guidance

• 2025 forecast confirmed: revenue €140–145 million, EBITDA €20–22 million.

• Order backlog increased by nearly 50% in 2024; pipeline includes potential orders worth €1.5 billion.

• Consumer Products division expected to contribute from Q2 2025, with focus on H2 2025.