Relais Group (RELAIS) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 remained flat at EUR 82.8 million compared to Q1 2024, with organic sales down 4% but offset by acquisitions.

• Q1 2025 was the second most profitable Q1 in company history, with profit for the period rising 51% to EUR 5.9 million and EPS up 51% to EUR 0.32, supported by FX gains.

• Major acquisitions announced in April—Matro Group (Belgium/Benelux/Germany) and Team Verksted/Lastvagnsdelar (Norway)—expand the European footprint and are expected to add EUR 9 million to annual EBITA.

• The company has executed over 20 acquisitions in five years, transforming into a leading European platform for vehicle aftermarket growth.

• The business is now split between technical wholesale/products (65% of net sales) and commercial vehicle repair/maintenance (35%), with the repair and maintenance segment showing strong performance.

Financial highlights

• Net sales: EUR 82.8 million (flat year-over-year); gross margin improved to 49.6% from 46.2%.

• Comparable EBITDA/EBITA was EUR 9.2 million, a 5% decline year-over-year due to product mix and mild winter.

• Profit for the period: EUR 5.9 million (+51%); EPS: EUR 0.32 (+51%), positively impacted by FX gains.

• Return on capital employed (ROCE): 21.0% (+26% vs. Q1 2024); return on equity (ROE): 19.1% (+36% vs. Q1 2024).

• Net working capital turnover remained high, though inventory turnover declined due to higher inventories.

• Net cash flow from operations: EUR 2.7 million (-43%); free cash flow: EUR 0.6 million.

• Interest-bearing net debt: EUR 146.7 million; net debt to EBITDA improved to 2.86 (from 3.15); equity ratio: 35.2%.

Outlook and guidance

• The company targets a pro forma comparable EBITDA/EBITA run rate of EUR 50 million by end-2025, factoring in full-year effects of recent and upcoming acquisitions.

• Upon closing the Matro and Team Verksted/Lastvagnsdelar deals, annual EBITA is expected to increase by EUR 9 million and net sales to reach about EUR 400 million.

• The platform is positioned for further organic and acquisitive growth, with a strong acquisition pipeline and ongoing synergy realization.

• Management expects a normal business year, with some positive signs in infrastructure and logistics sectors.