In This Article:
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Net Sales: SEK1.5 billion, a decrease from SEK2.4 billion last year, representing a 39% decline (FX adjusted decrease of 41%).
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EBITA: SEK217 million, down from SEK253 million last year; margin improved to 14.9% from 10.5%.
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Adjusted EBITA: SEK241 million with a margin of 16.5%, excluding restructuring costs.
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Cash Flow from Operations: SEK203 million, down from SEK381 million last year, mainly due to changes in working capital.
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Net Debt: SEK936 million, influenced by currency effects and loans in foreign currency.
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Cash Position: SEK680 million, compared to SEK674 million as of December 31, 2024.
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Acquisitions: Three companies acquired year-to-date: Congere, Railit, and Pcskog.
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Design Management Division: Stable demand with a transition to a high-margin business model.
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PLM Division: Stable sales in Nordic countries, UK, and US; weaker sales in Germany, particularly in the automotive industry.
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Process Management Division: Strong quarter with 5% organic growth and improved EBITA margins.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Addnode Group AB (STU:AR7) reported a stable quarter with a high share of recurring revenue, providing a secure foundation in uncertain times.
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The company has made three strategic acquisitions in 2025, enhancing its portfolio in defense, railway, and forest management sectors.
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The Process Management division delivered strong growth with improved EBITA margins and a 5% organic growth rate.
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The company maintains a strong financial position with low debt, enabling continued execution of its long-term acquisition strategy.
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Demand in the Design Management division was stable in both Europe and the US, with proprietary software sales showing good growth.
Negative Points
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Net sales decreased by 39% compared to the previous year, primarily due to changes in the transaction model within Design Management.
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The German market continues to deteriorate, particularly affecting the automotive industry, leading to weaker sales.
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Cash flow from operations decreased significantly, impacted by changes in working capital and the transition to annual payment terms.
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The PLM division introduced a cost adjustment program due to weaker sales, particularly in Germany, with restructuring costs impacting EBITA.
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The economic and geopolitical situation remains uncertain, affecting customer decision-making processes for major investments.
Q & A Highlights
Q: What is driving the declining adjusted EBITA margin in the PLM division despite positive organic growth? A: Johan Andersson, CEO, explained that the decline in adjusted EBITA margin is due to a mix of factors, including increased costs and a change in the sales mix. The company is addressing this with cost savings measures moving forward.