Berner Industrier booked strong order intake as well as improved earnings in the first quarter. Both business areas, Technology & Distribution as well as Energy & Environment improved gross margins, which laid the foundation for a strong EBITA in the quarter, which grew by 26 percent year-on-year. The Group's offerings stand strong amidst the social developments taking place. After the end of the quarter, an agreement was signed to acquire Autofric AB, active in, among other things, water treatment.

First quarter 2025
• Order intake totaled SEK 262.7 (222.3) million, an increase of 18.2 percent.
• Net sales for the first quarter totaled SEK 236.1 (243.2) million, down 2.9 percent, whereof -0.4 percentage points from currency effects when translating foreign subsidiaries.
• EBITA totaled SEK 18.3 (14.5) million, an increase of 26.3 percent. The EBITA margin was 7.7 percent (5.9).
• Earnings per share before and after dilution were SEK 0.66 (0.47).
• Cash flow from operating activities was SEK 15.1 (53.6) million. Total cash flow for the period was SEK 7.3 (26.4) million.
• The debt/equity ratio was further reduced during the quarter and amounted to 0.3x (interest-bearing liabilities/ EBITDA for the last 12 months) at the end of the period.
• The Board of Directors proposes to the Annual General Meeting a total dividend of SEK 0.95 (0.90) per share.

Significant events during the reporting period
• The Group entered into a new financing agreement with its main bank comprising a three-year agreement with an option for a further two years.

Significant events after the end of the reporting period
• On April 10, 2025, Berner Industrier signed an agreement to acquire 100 percent of the shares in Autofric AB, active in, among other things, water treatment. The acquisition is expected to close in the second quarter of 2025, and the company will be included in Berner Industrier's accounts from May 2, 2025. The company had revenue of SEK 60 million in 2024. The preliminary purchase price amounts to SEK 55 million on a debt-free basis and with the possibility of an additional SEK 20 million in additional purchase price.
• The Annual General Meeting will be held on April 29, 2025. The Nomination Committee has decided to propose to the Annual General Meeting that the Board members Joachim Berner, Kerstin Gillsbro, Lars Gatenbeck, Pia Irell and Helena Grubb be re-elected and that the Board members Johan Lannebo and Pim Polesie be elected as new members.

Solid start to the new year
The first quarter of the year saw a strong increase in profits and a margin of 8 percent, which is an increase of almost 2 percentage points compared to last year. Order intake continued to increase, 18 percent above the previous year. After the end of the quarter, we also signed an acquisition in water treatment. We are pleased to welcome Autofric to the Group, a technically skilled company positioned in sustainable technology and with several touch points with our existing businesses.

The past quarter has been eventful in both big and small ways. The new US administration is off to a flying start, and we have had to get used to watching the news even more closely than before. At the time of writing, the main topic of discussion is tariffs. The direct impact of the current tariff discussions on us is limited as we have mainly European customers. In 2024, less than 1 percent of sales were to customers outside Europe, and virtually all were to customers in China. We have some purchases from companies in the US, but even these are relatively limited, and we have historically been able to absorb effects such as supply chain disruptions, inflation and rising raw material and energy prices without too much impact on our gross margin. More complicated to grasp are the wider effects on the world situation and economy and how global flows of goods are redirected. However, we see that our decentralized model makes us better equipped to be nimble, and thus well equipped to deal with the changing conditions in geopolitics and the world economy that are sure to continue for some time.

Progress in the transition
So far, we have rather experienced gradual market recovery, with good order intake in most of our companies. In some areas, such investments in battery production facilities, demand is weak, but this has been more than compensated for by other areas. The restructuring work in the largest company in Technology & Distribution, Christian Berner AB, is advancing well under the new CEO, and we are already seeing improved margins. Finnish Christian Berner Oy, which was the first to feel the economic downturn in the fall of 2023, has started 2025 very well, with strong order intake growth and an EBITA margin of 11 percent. In Energy & Environment, we are pleased with the continued success of Zander & Ingeström. During the quarter, they won a large order for electric boilers for Boliden Rönnskär, which will be used to stabilize the electricity grid. We create technical solutions for the society of the future.

Exciting acquisition within a focus area
Shortly after the end of the quarter, we signed an agreement to acquire Autofric, a Värmland company active in water treatment, among other things. An acquisition that fits well into our strategy. Autofric started as a technically skilled contract manufacturer more than 40 years ago, and has gradually diversified its activities and developed its own products. We have had a dialog with the company's owners for more than a year. This means that we have been able to follow the strong development of the company and collaborate to develop a joint plan for the future. The whole Group is excited about the newest member of the family, which will be included into the Energy & Environment business area. Several of our subsidiary management teams in both business areas have already planned future collaborations.

Caroline Reuterskiöld
President and CEO Berner Industrier AB