In This Article:
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Net Sales: 3.3 billion, up by 0.3% with an organic growth of 0.2%.
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Order Backlog: 9 billion, with a book to bill ratio of 66%.
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EBITA: 900 million, margin of 6.6% (adjusted for one-off costs).
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Service Revenue: 36% of total sales, with a growth of 14% in the quarter.
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Cash Flow from Operations: 223 million, an increase of 12% year-over-year.
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Organic Growth: First positive organic growth since Q2 2023.
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Segment Sweden Net Sales: 2.4 billion, organic growth of 5.7%.
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Segment Sweden EBITA Margin: 6.8% (adjusted), 4.1% (unadjusted).
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Rest of Nordics Net Sales: 900 million, organic decrease of 11.6%.
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Rest of Nordics EBITA Margin: 2.7%.
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Cash Conversion: 96%.
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Dividend Proposal: 0.68, maintaining last year's level.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Instalco AB (FRA:4IIA) reported organic growth for the first time since Q3 2023, indicating a potential positive shift in market conditions.
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The company's cash flow from operations increased by 12% compared to last year, showcasing strong focus on improving working capital.
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Instalco AB's service business saw a growth of 14% in absolute numbers, making up 36% of sales, which acts as a stabilizing factor.
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The company completed its first acquisition of the year and finalized the first phase of its investment into Germany, marking strategic expansion.
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Instalco AB maintains a stable financial position with significant headroom in relation to loan covenants, allowing for continued selective growth.
Negative Points
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The EBITA margin decreased to 5.7% from 7.6% last year, impacted by one-off costs and a tough pricing environment.
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The market remains challenging with global uncertainty affecting investment willingness, particularly due to interest rate and geopolitical concerns.
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Instalco AB's leverage is approaching 3 times, raising concerns about financial stability in a tough market environment.
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The company faced a one-off expense of 64 million due to Northvolt's bankruptcy, impacting EBITA in the first quarter.
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Utilization in Norway and Finland was negatively affected by temporarily lower capacity, impacting earnings in the rest of the Nordics segment.
Q & A Highlights
Q: How long do you expect the vacuum from completed projects to last, given the backlog development? A: The vacuum mainly affects the rest of the Nordics, where larger profitable projects ended in Q4. It's difficult to predict the exact duration, but the current level is not satisfactory. It's better to look at the 12-month rolling figures for a clearer picture. - Robin Boheman, CEO