Saxlund Group (SAXG) Q1 2025 earnings summary

Executive summary

• Revenue declined to 45.2 MSEK from 75.9 MSEK year-over-year, mainly due to lower project activity in Germany and delayed order signings.

• EBITDA improved to -2.0 MSEK from -4.6 MSEK, reflecting stronger margins and reduced operating costs.

• Net result after tax was -3.3 MSEK, a significant improvement from -6.7 MSEK year-over-year.

• Cash flow was strong, increasing cash reserves to 23 MSEK by March 31, 2025.

• The company continues to focus on cost optimization and margin improvements, especially in aftermarket services.

Financial highlights

• Operating income (EBIT) for Q1 2025 was -3.0 MSEK, up from -5.7 MSEK year-over-year.

• EPS improved to -0.46 SEK from -10.44 SEK year-over-year.

• Gross margin strengthened despite lower sales, driven by efficiency gains and cost control.

• Cash flow from operations was positive, with cash increasing by nearly 11 MSEK during the quarter.

• Equity at period end was 53.3 MSEK, up from 8.1 MSEK year-over-year.

Outlook and guidance

• Management expects continued subdued revenue in the near term due to a lower order backlog, but sees a strong pipeline and potential for order book growth.

• Focus remains on profitability and further margin improvements, particularly in the aftermarket segment.

• The company is confident in its liquidity and capital structure to support ongoing operations.