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Beijer Alma AB (FRA:6O4) Q1 2025 Earnings Call Highlights: Strong Order Bookings and Revenue ...

In This Article:

  • Order Bookings: Increased by 9%.

  • Organic Growth: 4% increase.

  • Net Revenue: Increased by 8% to almost SEK2 billion.

  • Adjusted Operating Profit: SEK282 million.

  • Operating Margin: Same level as last year.

  • Lesjofors Revenue Contribution: 68% of Beijer Alma.

  • Industry Segment Growth: Increased by 7%.

  • Chassis Springs Revenue: Decreased by 5%, with a slightly higher margin.

  • Beijer Tech Order Bookings: Increased by 15%.

  • Beijer Tech Net Revenue: Increased by 17%.

  • EBITA Margin: 14.4%, same as last year.

  • Adjusted EBIT Margin: Slightly higher than last year.

  • Cash Flow: More positive than last year.

  • Earnings Per Share: Increased by 6%.

  • Net Debt to Adjusted EBITDA: 2 times.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Beijer Alma AB (FRA:6O4) reported a strong first quarter with a 9% increase in order bookings and an 8% rise in net revenue, reaching almost SEK2 billion.

  • The company experienced good growth in the Nordic region, driven by both organic and acquired growth.

  • Lesjofors, a major part of Beijer Alma, saw organic growth in sales and order bookings, contributing positively to the company's performance.

  • Beijer Tech reported a 15% increase in order bookings and a 17% rise in net revenue, showcasing strong growth across its business units.

  • The company maintains a stable operating margin and has room for future acquisitions, with a net debt to adjusted EBITDA ratio of 2 times.

Negative Points

  • The Chassis Springs business within Lesjofors experienced a slight decrease in sales compared to the previous year, although margins improved slightly.

  • Alcomex, an acquisition in Holland, faced challenges due to its connection to the struggling construction market in Europe, negatively impacting the company's performance.

  • The company reported an increase in net debt, attributed to recent acquisitions, which could pose a risk if not managed carefully.

  • The fire incident in Amminnefors, Finland, although covered by insurance, may have marginal negative effects in the coming quarters.

  • The market situation remains unstable, with potential impacts from external factors such as the timing of Easter and general economic conditions in Europe and the US.

Q & A Highlights

Q: Should we expect more focus on organic growth and margin improvements in Lesjofors, while Beijer Tech focuses on both organic growth and acquisitions? A: Yes, that's a good conclusion. However, if opportunities arise in Lesjofors, acquisitions will be considered there as well. But the current trend is as you described. - Johnny Alvarsson, President and CEO