Wetteri (WETTERI) Q1 2025 earnings summary

Executive summary

• Net profit for the period was €10.9 million, driven by a one-time gain from the divestment of Wetteri Power Oy in January 2025; excluding this, profitability was negative.

• Revenue for Q1 2025 was €115.5 million, down 9% year-over-year, reflecting a weak automotive market.

• Adjusted EBITDA was €2.3 million, and adjusted operating profit was -€1.4 million, both down from Q1 2024.

• The Passenger Cars segment saw a 15% revenue decline, while Heavy Equipment revenue rose 235% due to acquisitions.

• Focus areas include improving profitability, expanding brand representation, and executing a new strategy post-divestment.

Financial highlights

• Adjusted EBITDA was €2.3 million (down 43%); adjusted operating profit was -€1.4 million.

• Operating profit was -€2.1 million; profit for the period was €10.9 million, including a €14.3 million capital gain from divestment.

• Earnings per share: €0.07 (basic, total); €-0.02 (basic, continuing operations).

• Equity ratio was 22%; net debt was €107.8 million; gearing was 248%.

• Cash flow from operating activities was €3.4 million; total cash flow was €-0.9 million.

Outlook and guidance

• 2025 guidance was withdrawn due to increased market uncertainty and weak early-year performance.

• Profitability improvement program targets €8 million annual improvement, with full effects expected in 2026.

• Full-year 2025 profit is expected to improve over 2024, supported by acquisition and divestment synergies.

• Used car sales and new car registrations were weaker than expected in early 2025; market predictability is challenged by tariff uncertainties.