u-blox (UBXN) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue reached CHF 70.4 million, up 26% year-over-year and 10% sequentially from Q4 2024, confirming recovery from 2024 overstocking.

• Strongest growth in Locate segment, up 43% year-over-year, driven by automated driving and industrial applications; Short-range up 48% year-over-year; Cellular declined 27% year-over-year.

• Short-range revenue is recovering, while Cellular remains weak and is being divested to Trasna, with closing expected in Q2 2025.

• Transformation efforts since 2023 have improved focus, resilience, and execution, positioning for sustainable value creation.

• EBIT reported at CHF -49.0 million due to one-off Cellular charges; adjusted cash EBIT improved to CHF -3.6 million from CHF -21.3 million year-over-year.

Financial highlights

• Group-level losses reduced by a factor of five within 12 months; adjusted cash EBIT margin improved to -5.1% from -38.1% year-over-year.

• Excluding Cellular, adjusted cash EBIT was CHF 0.7 million and cash EBIT was positive in Q1 2025.

• Revenue in Locate: CHF 51.9 million (+43% YoY), driven by automotive (+71%) and industrial (+30%).

• Short-range revenue: CHF 8.3 million (+48% YoY), with automotive and industrial rebounding.

• Cost-saving measures and strict discipline contributed to profitability improvement.

Outlook and guidance

• Q2 2025 revenue (excluding Cellular) expected at CHF 60–70 million, up 15%–35% year-over-year and up to 16% sequentially; adjusted cash EBIT margin projected at 0%–10%.

• Expects sequential quarterly improvement throughout 2025, excluding Cellular, with double-digit revenue growth anticipated in both Locate and Short-range.

• At constant exchange rates, revenue would be CHF 6 million higher and cash EBIT margin four points better; FX expected to impact Q2 revenue by CHF -6 million and EBIT margin by -4 percentage points.