Financial summary

January – March 2025
▪ Net sales amounted to SEK 84.5 million (93.4).
▪ EBIT amounted to SEK -3.1 million (-1.5).
▪ Net profit amounted to SEK -4.3 million (-5.3).
▪ Earnings per share amounted to SEK -0.27 (-0.79).
▪ Cash flow from operating activities amounted to SEK -11.6 million (-21.4).
▪ Order intake during the period amounted to SEK 109 million (75) with the order book amounting to SEK 354 million (202).

Significant events during the quarter
▪ A directed share issue of SEK 36.1 million has been carried out.

Significant events after the end of the period
▪ The business area Training has signed an important agreement with the Finnish Defence Forces for the delivery of a mobile live fire training system. The initial contract is valued at SEK 25 million, with deliveries planned for 2025–2026.

Other important events after the period
▪ Cecilia Driving was appointed CFO as of 1 April 2025.
▪ Joachim Hammersland was appointed Deputy CEO, in addition to his position as Head of business area Power, effective 29 April.

Comments by CEO Evelina Hedskog

A record-high order book provides a strong foundation for profitable growth

Favourable conditions
The first quarter of the year has been marked by turbulent developments in global politics, prompting Europe to take greater initiative than ever before in strengthening both national defence capabilities and the European defence industry. This shift has led to an immediate increase in investor interest in defence companies. For W5, this has resulted in a successful share issue, a rising share price, and a doubling of our shareholder base during the first quarter. Together, these factors provide us with strategic flexibility as we reactivated our acquisition agenda in 2025, an essential part of our strategy to reach SEK 1 billion in revenue by 2027.

The ongoing trade war is currently having only a marginal negative impact on W5. Our market share in the United States is very limited, as is our dependence on American suppliers. In fact, the American isolationist agenda may even benefit us, as an increasing number of stakeholders are turning to European alternatives to enhance supply security.

Record-high order book
During the first three months of the year, our order book has continued to grow to record levels, driven by a number of new medium-sized contracts. Unlike larger orders – which often involve longer development timelines and require more tied-up capital – many of these new contracts have relatively short turnaround times, meaning deliveries will take place already this year. In addition, our strong focus on export markets has paid off, with strategically important contracts won in Finland during and shortly after the first quarter. This is particularly encouraging as the Nordic armed forces increasingly emphasis on standardised equipment to enable better interoperability. This trend opens up further opportunities for us to strengthen our presence in other Nordic countries.

Focus on development
With the strengthened cash position following the share issue, we have been able to intensify our investments in product development across all business areas. Developing our offering is a key strategic priority, and the capital injection has enabled us to accelerate and broaden several of these initiatives. This is resulting in a more differentiated product portfolio with strong potential to generate future business. Furthermore, the somewhat modest revenue for the quarter – aside from reflecting seasonal variation – is also due to the fact that much of the Groupʼs current activity is tied up in longer-term, customerfunded development projects. Our assessment is that both customer-funded and self-funded development will begin generating revenue through serial deliveries already during the current year. In summary, we now have a steadily growing order book and a stronger product portfolio. The challenge in the coming quarters will be to convert this into increased revenue and profitability as quickly as possible – something we are more than ready to take on.

Evelina Hedskog, President & CEO

Live webcast presentation of W5 Solutions’ interim report for January–March 2025

W5 Solutions invites investors, analysts, and media to a live webcast presentation in which CEO Evelina Hedskog will comment on the interim report for the period January–March 2025.

The presentation will be held in English and will conclude with a Q&A session. The live broadcast will begin at 11:30 CEST on 7 May 2025.

To participate in the presentation, please register via the following link: https://qcnl.tv/p/t-jzNDdqpUdpvZOit7bifg

The complete report, attached to this press release, is also available for download on the company’s website: https://w5solutions.com/investor-relations/financial-reports-and-presentations/