Seco/Warwick (SWG) Q1 2025 earnings summary

Executive summary

• Revenue increased by 2.6% year-over-year to 186.9m PLN in Q1 2025, driven by strong growth in the Aluminium Process segment (+60% y/y).

• Gross margin improved to 20.4% (+0.2 p.p. y/y), while net profit declined by 12.1% to 5.7m PLN due to higher operating costs.

• Order backlog reached 711.3m PLN (+3.6% y/y), and new orders rose 34.7% y/y to 132m PLN, supporting future business prospects.

• EBIT margin decreased to 4.5% (-0.6 p.p. y/y) and EBITDA margin remained stable at 7.3%.

• Cash flow from operations was -29.6m PLN, reflecting increased working capital tied to large projects.

Financial highlights

• Q1 2025 revenue: 186.9m PLN (Q1 2024: 182.1m PLN); gross profit: 38.2m PLN (Q1 2024: 36.7m PLN).

• Net profit attributable to shareholders: 5.5m PLN (Q1 2024: 6.3m PLN); EPS: 0.63 PLN (Q1 2024: 0.73 PLN).

• Operating profit: 8.4m PLN (Q1 2024: 9.3m PLN); EBIT margin: 4.5%.

• Cash and equivalents at period end: 85.9m PLN (Dec 2024: 145.8m PLN).

• Total assets: 663.7m PLN; equity: 264.9m PLN; liabilities: 397.4m PLN.

Outlook and guidance

• Management expects continued business stability, supported by a strong order backlog and robust new contract acquisition.

• Priorities include optimizing working capital, controlling operating costs, and strengthening core product segments.

• Ongoing geographic diversification aims to mitigate market risks.