Seamless Distribution Systems (SDS) Q1 2025 earnings summary

Executive summary

• Net sales increased 1.1% year-over-year to 56.2 MSEK, with core SDS business up 6.6% after discontinuing SDD segment in 2024.

• EBITDA fell 48.9% to 11.3 MSEK, mainly due to negative currency effects; adjusted EBITDA margin was 27.2%.

• Net result after tax was -2.4 MSEK, down from 0.4 MSEK year-over-year; EPS was -0.13 SEK.

• Cash flow for the period improved to 8.3 MSEK from 5.9 MSEK year-over-year.

• New CEO and CFO appointed in April 2025, with a focus on financial stability and growth.

Financial highlights

• Operating expenses rose 2.9% to -54.1 MSEK; operational costs were -40.4 MSEK.

• EBITDA margin dropped to 20.1% from 39.8% year-over-year; EBIT was 2.1 MSEK.

• Financial net improved to -3.1 MSEK from -9.1 MSEK year-over-year.

• Investments in product development totaled 4.0 MSEK; cash and equivalents at period end were 12.5 MSEK.

• Return on equity was -2.2%; equity ratio at 22.7%.

Outlook and guidance

• Focus on securing 2025 order intake and building recurring revenue to cover operational costs by 2026.

• Targeting annual order intake of 8–10 MUSD; cost optimization program of 30–40 MSEK underway.

• If sales and cost targets are met, management sees a clear path to meeting bond obligations.