First quarter 2025

• Order intake increased by 5% and amounted to SEK 8,462 million (8,037). For comparable units, the increase was 1%.
• Net sales increased by 4% to SEK 8,036 million (7,744). For comparable units, there was no change.
• EBITA increased by 6% to SEK 1,094 million (1,033), corresponding to an EBITA margin of 13.6% (13.3).
• Profit for the quarter increased by 6% to SEK 623 million (588) and earnings per share amounted to SEK 1.71 (1.61).
• Cash flow from operating activities amounted to SEK 644 million (487).

CEO’s message

First quarter
Demand improved slightly during the first quarter, despite the uncertain global environment. Order intake amounted to SEK 8.5 billion (8.0), an increase of 5% on the corresponding period in the previous year. Order intake increased by 1% organically, with positive developments in more than half of the companies. Order intake was 5% higher than sales. Demand varied between and within segments and companies with customers in medical technology and pharmaceuticals had the strongest growth overall. Development also remained positive for companies with customers in the Scandinavian process industry and the energy sector. Demand from customers in infrastructure and construction was unchanged overall compared with the previous year, while in engineering demand was more subdued. Organic order growth was strongest in the Process, Energy & Water business area, while Technology & Systems Solutions had the weakest performance. The recently announced tariffs have so far had a marginal impact on demand. Indutrade's direct exposure to the US is limited, with total sales to North America in 2024 corresponding to less than six percent of the Group's net sales.

Net sales totalled SEK 8.0 billion (7.7), an increase of 4% on the corresponding period in the previous year. Organically, sales were in line with the previous year. The Life Science business area had the highest organic sales growth, primarily attributable to higher demand from customers in pharmaceutical production. Organic sales were unchanged for business area Infrastructure & Construction but decreased in the other three business areas, mainly due to the slightly lower order backlog at the beginning of the year.

EBITA increased by 6% to SEK 1.1 billion (1.0), corresponding to an EBITA margin of 13.6% (13.3%). The underlying EBITA margin, excluding non-recurring items, amounted to 13.3%. The market situation was challenging for our companies, but they continued their successful pricing efforts and the gross margin improved compared with the corresponding period in the previous year. EBITA margin performance was, however, held back by the organic sales development, combined with slightly higher expense levels. In terms of business areas, the margins improved in Life Science and Infrastructure & Construction compared with the previous year, while they declined in the other business areas.

Cash flow from operating activities improved on the corresponding period in the previous year and totalled SEK 644 million, driven by the higher earnings and a more favourable development in working capital. We have a strong financial position with a historically low net debt/equity ratio.

Acquisitions
To date in 2025, Indutrade has welcomed three new companies with combined annual sales totalling around SEK 390 million. In January, we acquired the German company Ecoroll, a specialised manufacturer of tool technology for mechanical surface treatment. At the end of the quarter, we signed an agreement to acquire the Irish company IPP, a leading technical trading company specialised in manufacturing equipment and consumables to the medical technology and pharmaceuticals and electronics sectors in the UK and Ireland. Since the end of the quarter, we have added the Swedish company Ideus, which offers customised metal components for the Swedish engineering sector.

Despite ongoing uncertainty, the acquisition climate in 2025 remains positive. We have good activity in our acquisition processes and a strong financial position, laying a solid foundation for continued value-creating acquisitions.

Outlook
Demand improved slightly during the first quarter, with positive developments in several large customer segments. Even so, the order backlog remains somewhat lower than in the previous year and the global economy is very unstable. In this context, our decentralised business model – with many entrepreneurial companies, few large individual business exposures and companies that can quickly adapt to changing market conditions – is an advantage. Many companies are actively working to adapt costs to the situation prevailing in their markets. There are also great long-term needs in many of our industries, such as medical technology and pharmaceuticals, infrastructure and energy.

Our efforts to create sustainable, profitable growth continue and we have a solid platform for long-term value creation!

Bo Annvik, President and CEO

For further information, please contact:
Bo Annvik, President and CEO, tel. +46 (0)8 703 03 00,
Patrik Johnson, CFO, tel. +46 (0)70 397 50 30.

This report will be commented upon as follows:
A webcast of the report will be presented on 25 April at 9.30 a.m. CEST via the following link:
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