u-blox (UBXN) Investor Update summary

Cellular business divestment and transition

• Agreement reached for Trasna to acquire the cellular module business and Italian legal entity, with the transaction expected to close in Q2 2025, ensuring continuity for customers and employees while reducing restructuring costs and effort.

• The divestment aligns with the strategy to focus on core positioning technologies, with Trasna aiming to invest in innovation and expand its cellular technology capabilities.

• Ongoing discussions with several partners led to the Trasna agreement, considered the best option for all stakeholders.

• The transition allows a stronger focus on the Locate business, the company's core area.

• Trasna's CEO highlights the acquisition as a milestone, with plans to build on the acquired portfolio and invest in innovation for mass IoT solutions.

Financial impact and guidance

• Non-cash restructuring charge of CHF 39 million confirmed, with restructuring and transaction costs reduced to around CHF 4 million, down from CHF 26 million.

• Guidance for Q1 2025 reaffirmed: revenue of CHF 65–75 million and adjusted cash EBIT margin of -12% to -2%, reflecting gradual recovery.

Business segment outlook and market updates

• Double-digit growth is expected for both Locate and Short Range segments, with guidance provided at the company level.

• Locate remains the largest and most strategically important segment, with an attractive margin profile.

• Short Range is targeted to break even in the second half of the year, with ongoing improvement measures and no distinct revenue target; focus is on achieving profitability in the midterm.

• Market conditions are expected to improve gradually in 2025, with customer orders showing steady improvement.