• Higher delivery precision and productivity improves profitability
• Net sales decreased by 1% to SEK 2,225 m (2,253)
• Operating profit (EBIT) increased by 15% to SEK 223 m (194)
• Profit before tax (EBT) increased by 20% to SEK 221 m (184)
• Profit margin before tax (EBT %) was 9.9% (8.2)
• Profit after tax amounted to SEK 185 m (159)
• Cash flow from operating activities amounted to SEK 244 m (225)
• Earnings per share before dilution amounted to SEK 10.06 (8.61)
• Equity ratio was 64% (55)
• The Board of Directors proposes a dividend of SEK 6.66/share (3.33) and a 5:1 share split

A word from the CEO    

AQ 30 years of growth, profit and fun

The year has started well. We improve our delivery precision and focus on helping our customers. Sales are still high. We are quick to adapt our capacity and cost base which, together with productivity improvements, gives a good result in the first quarter.

Improved delivery precision

During the first quarter, we started series production of wiring systems in our new premises in Łódź, Poland. We have also reduced our backlog in our transformer factory in Finland, which supplies transformer systems to ships. Overall, our delivery precision has improved and in March we deliver 93.7% of our order lines on time, which is a 2.3 percentage points improvement compared to Q4 2023. Although delivery precision has improved, our target is 98% and we have three production units with great potential for improvement.

Market

In the quarter, we had a negative organic growth of 2% compared to the same quarter previous year. This is partly because we delivered several large energy storage projects in the corresponding quarter of the previous year, but we also see a slowdown in components for off-road equipment, trucks, and frequency converters.

A positive thing is that during the quarter we have been selected as the supplier of balancing units to market-leading robot manufacturer, we have won new products for several electric truck models, and we have won several major projects in electrical automation of harbor cranes. It should also be mentioned that our engineering company sees great demand in Sweden for design services for electrification and the defense industry, and our engineering offices in Torslanda, Trollhättan, Östersund and Västerås are growing steadily with several new competent employees.

Our market segments in electrification, defense industry, marine and railway are growing. Our companies within inductive components have great demand both for the design of new products and for the delivery of existing products. In the transition that is now underway to create, control and store renewable energy, inductive components are a necessary "gatekeeper" that ensures that electrical energy remains clean and fine.

Acquisitions

During the month of March, we agreed with the owners of JIT Mech to acquire their two production units in Robertsfors and Örnsköldsvik. It gives AQ unique competence in welding and processing of large complex components for electrification, defense industry and forestry automation. The closing takes place during the second quarter.

Cash flow and balance sheet

Our cash flow from operating activities is in line with our profit. We continue to be rigorous and disciplined in our efforts to reduce our inventory and purchasing costs. Purchasing is an incredibly important part of our mission to be competitive with our customers and we pride ourselves on being thrifty even with small expenses. Our net debt is low, which means that we have plenty of dry powder to use when the right opportunity presents itself to grow organically and through acquisitions.

AQ 30 years of growth, profit and fun

In 2024, AQ as a company celebrates 30 years. We want to do that by once again showing that we are hardworking entrepreneurs who, guided by our core values, can grow, show good results and have fun together along the way. So, in 2024 we will carry out several activities together with our employees, customers and partners where we celebrate that for 30 years, we have helped our demanding industrial customers to be successful and where we have given a good return to our shareholders.

Finally, as usual, I would like to thank our employees who do a fantastic job of satisfying our demanding customers.

James Ahrgren
CEO

___________________________________________________________________________________________________________________________________________

This disclosure contains information that AQ Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 18-04-2024 08:00 CEST.

For further information, please contact:
James Ahrgren, CEO, +46 76 052 58 88  or CFO, Christina Hegg, telephone +46 70 318 92 48

___________________________________________________________________________________________________________________________________________

AQ is a global manufacturer of components and systems to demanding industrial customers and is listed on Nasdaq Stockholm's main market. The Group consists mainly of operating companies each of which develop their special skills and in cooperation with other companies, striving to provide cost effective solutions in close cooperation with the customer.

The Group headquarter is in Västerås, Sweden. AQ has 8,000 employees in Bulgaria, Poland, Lithuania, Sweden, China, Estonia, Hungary, Mexico, Finland, India, Canada, USA, Germany, Italy, and Brazil. In 2023 AQ had net sales of SEK 9 billion, and the Group has since its start in 1994 shown profit every quarter.

www.aqgroup.com (http://www.aqg.se/)