FIRST QUARTER 

• Consolidated net sales amounted to SEK 123.0 million (129.4). 
• Operating profit (EBIT) amounted to SEK 4.4 million (15.1). 
• Earnings per share before and after dilution amounted to SEK 0.19 (0.20). 

SIGNIFICANT EVENTS IN THE FIRST QUARTER 

• Railcare signed a new snow removal contract with the Swedish Transport Administration worth SEK 355 million. 
• Railcare has received an order for a Railvac machine from Norwegian Baneservice, with a total value of SEK 30 million. 

CEO COMMENTS
Net sales in the first quarter were SEK 123.0 million (129.4) and operating profit amounted to SEK 4.4 million (15.1). This corresponds to an operating margin of 3.6 percent. 

“The first quarter was mainly affected by the planned expansion of the organisation to support future assignments, along with continued low volumes in the UK operations. As a result, the operating margin is lower than normal. However, as previously communicated, expanding and adapting the organisation are necessary steps to ensure continued growth and to reach our targets for 2027.” 

Railcare sets its sights on established targets 
Railcare is steadily progressing towards its 2027 targets, with the planned expansion of the organisation to support future assignments now in full swing. This applies not only to the Transport segment, but also to the Contracting and Technology segments, where we are seeing increased demand. As the organisation is being strengthened to support continued growth, the margin is lower than normal for a first quarter. However, this is a necessary step toward achieving our long-term targets. We anticipate a gradual improvement in the margin moving forward and see strong prospects for achieving our financial targets. 

UK operations remain sluggish 
We have faced significant challenges in our UK operations for an extended period. We have implemented substantial cost-saving measures, relocated resources to Sweden, and adjusted our working methods in the hope of higher volumes, but have not seen a return to pre-pandemic levels. 

It is frustrating that volumes remain so low despite the substantial underlying maintenance needs. Our efficient machines also enable more maintenance for the money, but the allocated funds are not being used effectively enough, and too little is ultimately spent on actual track work. We are now in a position where we are exploring alternative opportunities for the machines to increase their utilisation, either in the UK or in other markets. 

Order for Railvac machine from Norway’s Baneservice 
Our increased focus on external machine sales has yielded results, as Norway’s Baneservice placed an order in mid-February for a new Railvac valued at SEK 30 million. This is the fourth Railvac machine acquired by Baneservice. The diesel-powered machine will be manufactured at the Skelleftehamn workshop and is expected to be completed in the first quarter of next year, when revenue recognition will also occur. The Railvac is primarily used for ballast replacement and cable handling on the railway. The vacuum technology is both efficient and gentle on the infrastructure. 

Strategically important locomotive workshop in Långsele 
The acquisition of the company that owns the property in Långsele, Y-ettan AB, was completed as planned, with the transfer completed on 1 April. The locomotive workshop is highly regarded by customers for its efficient services and offers strong future potential due to its strategic location. Sweden’s railway network is primarily built in a north–south direction, but increased defence preparedness and NATO membership place high demands on a robust and reliable railway infrastructure in the east–west direction as well. Långsele is a railway junction on the Northern Main Line (Norra Stambanan) and the Ådalen Line (Ådalsbanan), with additional connections via cross lines to the Bothnia Line (Botniabanan) and the Inland Line (Inlandsbanan). This makes it a strategically important location, particularly from a defence preparedness perspective. 
We are continuing our efforts to analyse needs and future investments in the locomotive workshop. In parallel, work is underway to develop a detailed development plan. This process is expected to continue throughout 2025. 

Railcare looks ahead despite global uncertainty 
Developments in the world around us have certainly not moved in the right direction in recent years. The pandemic, the war in Ukraine, and—perhaps most notably—the turbulence following the U.S. election have all impacted global security and the world economy in ways that have been difficult to foresee. It is precisely the difficulty in assessing how developments will unfold that creates the greatest uncertainty. At present, we are not seeing any significant negative impact on Railcare. The security situation and NATO membership have, if anything, led to increased focus on the importance of a robust and reliable railway infrastructure. I would argue that railway infrastructure has never been as widely discussed as it is today. As the agile and solution-oriented company we are, there are still strong business opportunities even in times like these. Investments in the railway sector are increasing, and we are well positioned to capitalise on these new business opportunities in the years ahead. 

Mattias Remahl 
CEO