Prevas (PREV) Q1 2025 earnings summary

Executive summary

• Turnover for Q1 2025 was SEK 430.7 million, up 5.8% year-over-year, driven by acquisitions, with organic growth flat and lower utilization in some regions.

• EBITDA/EBITA was SEK 35.6 million (8.3% margin), down from SEK 53.5 million (13.2%) in Q1 2024, but above Q3 and Q4 2024; profit per share after dilution was SEK 1.75, down 31.6% year-over-year.

• Strong cash flow from operating activities at SEK 32.2 million, up from SEK 27.1 million year-over-year.

• Strategic focus on sales, cost control, and targeted recruitment, with continued investments in defense and energy sectors.

• Acquisition of OIM Sweden AB announced, strengthening the Malmö-Lund region and Medtech capabilities, with 40 employees and ISO 13485 certification.

Financial highlights

• EBITDA margin was 8.3%; EBIT margin was 7.4%, both down year-over-year and impacted by acquisition costs and calendar effects.

• Adjusted for Finland and calendar effects, EBITDA/EBITA margin would have been 10.4%.

• Net debt/EBITDA at 0.84x, well below the 2x target.

• Equity ratio at 50.3%, down from 60.9% in Q1 2024.

• Cash at quarter end was SEK 49 million; SEK 100 million overdraft facility unused.

Outlook and guidance

• Market demand remains flat overall, with strong growth in defense, energy, automation, and electrification sectors.

• High order intake in Finland expected to impact Q3–Q4 2025 and early 2026, but short-term profitability remains a challenge.

• Continued focus on margin improvement, sales, and developing offerings, with ongoing readiness for further acquisitions.

• No direct impact yet from global uncertainties or altered customs rules, but company is prepared to respond quickly.