Wall to Wall Group (WTW-A) Q1 2025 earnings summary

Executive summary

• Q1 2025 was seasonally soft with low activity, but market stabilization and recovery are anticipated over the year.

• Full-year outlook remains unchanged, with expectations for significantly improved adjusted EBITA in 2025.

• Continued focus on reducing indirect costs and strengthening gross margin through efficiency and collaboration.

Financial highlights

• Net revenue for Q1 2025 was SEK 204.1 million, down from SEK 231.6 million year-over-year; adjusted EBITDA was SEK 13.5 million (6.6% margin), down from SEK 23.7 million (10.2%).

• Adjusted EBITA was SEK -1.4 million (-0.7% margin) versus SEK 9.5 million (4.1%) last year; operating profit (EBIT) was SEK -26.6 million, impacted by SEK 22.2 million in restructuring and other non-recurring costs.

• Net earnings were SEK -31.1 million, compared to SEK 4.2 million in Q1 2024; EPS was SEK -2.30 (0.30).

• Cash flow from operations was SEK -5.6 million, down from SEK 11.0 million year-over-year.

• Net debt increased to SEK 202.1 million from SEK 186.6 million at year-end 2024.

Outlook and guidance

• Market is stabilizing, with postponed real estate investments expected to drive recovery in pipe relining and energy-saving solutions.

• Flushing services are performing well and expected to grow via new contracts and geographic expansion.

• Cost reduction and organizational efficiency measures are expected to deliver a significantly improved adjusted EBITA for 2025.