Troax Group (TROAX) Q1 2025 earnings summary

Executive summary

• Order intake and sales both declined 4% year-over-year to EUR 69.5 million and EUR 68.3 million, respectively, with organic growth down 5% and a 1% positive FX effect.

• Americas and APAC regions showed strong growth, with APAC surging 94% and Americas up 7%, while Europe, especially Northern and Southern regions, experienced double-digit declines.

• EBITA margin fell to 14.0% from 15.5% year-over-year, mainly due to higher SG&A costs and lower production volumes in Europe, though gross margin improved to 37.5%.

• Working capital discipline and stable net debt/EBITDA at 0.9 supported continued investments and growth initiatives, including the new Tennessee factory and Active Safety segment.

• Organizational restructuring effective January 2025 decentralized decision-making and introduced a new regional reporting structure (EMEA, Americas, APAC).

Financial highlights

• Order intake: EUR 69.5 million, down 4% year-over-year; sales: EUR 68.3 million, down 4% year-over-year.

• EBITA: EUR 9.5 million (14.0% margin), down from EUR 11.0 million (15.5% margin) last year.

• Gross profit: EUR 25.6 million, gross margin 37.5% (up from 36.2%).

• Adjusted EPS: EUR 0.10, down from EUR 0.12 or 0.13 year-over-year.

• Operating cash flow: EUR 3.8 million, following typical seasonal pattern; net debt/EBITDA: 0.9.

Outlook and guidance

• Management expects continued geographical disparities, with Asia and North America performing well and Europe remaining weak.

• SG&A costs expected to decrease in Q2 due to seasonal factors and cost discipline.

• Capacity adjustments planned in Europe to align with weaker demand, with potential positive cost effects in 2025.

• Low net debt provides opportunities for acquisitions and further investments.

• No material postponed volumes from Q1 into Q2; order intake seen as representative of current activity.