Projektengagemang Sweden (PENG-B) Q1 2025 earnings summary

Executive summary

• Market conditions remained challenging with cautious investment sentiment and macroeconomic uncertainty, especially impacting commercial real estate, housing, and Civil Engineering & Environment, while demand in industry, energy, and security properties was relatively better.

• Long-term demand for expertise is driven by energy transition, digitalization, urbanization, and sustainability trends.

• Cost structure optimization and staff reductions in 2024 impacted revenue; average staff fell to 607 from 685.

• Two projects won awards in the Årets Bygge 2025 competition, highlighting expertise and client offering.

• Malin Ekstrand appointed as new CFO in March 2025.

Financial highlights

• Net revenue for Q1 2025 was SEK 195.0 million, down from SEK 218.3 million year-over-year.

• EBITA for the quarter was SEK 5.6 million, a decrease from SEK 18.2 million in Q1 2024, with an EBITA margin of 2.9% (8.3%).

• Net income for the period was SEK 2.7 million, compared to SEK 12.3 million in the same quarter last year; earnings per share were SEK 0.11 (0.51).

• Cash flow from operating activities was SEK 22.2 million, down from SEK 41.8 million year-over-year.

• Net debt at quarter-end was SEK 165.9 million, down from SEK 226.9 million year-over-year.

Outlook and guidance

• The market remains cautious with continued macroeconomic uncertainty and weak development in commercial and residential real estate.

• Management expects continued market challenges, especially in Civil Engineering & Environment, but sees long-term potential for profitable growth.

• Focus remains on cost efficiency, targeted recruitment, and multidisciplinary service delivery.

• No dividend is proposed for the period.