Hillerstorp 23rd of April 2025, 12:30 CET

JANUARY - MARCH

• Order intake in the quarter decreased by 4 percent compared with the same period last year and amounted to 69,5 (72,3) MEUR. Adjusted for currency and acquisitions the order intake decreased by 5 percent.
• Sales in the quarter decreased by 4 percent compared with the same period last year and amounted to 68,3 (70,9) MEUR. Adjusted for currency and acquisitions sales decreased by 5 percent.
• Operating profit before amortizations (EBITA) decreased to 9,5 (11,0) MEUR.
• Operating margin before amortizations (EBITA margin) decreased to 14,0 (15,5) percent.
• Financial net was -1,6 (-1,3) MEUR.
• Profit after tax decreased to 5,3 (6,7) MEUR.
• Adjusted earnings per share after dilution amounted to 0,10 (0,13) EUR.
• Earnings per share after dilution amounted to 0,09 (0,11) EUR.

COMMENTS FROM THE PRESIDENT AND CEO

Characterized by a more nervous macroeconomic environment and a high pace of internal transformation, this quarter marked the passing of several important milestones. While our end customer segments continued to develop in roughly the same direction as in the fourth quarter overall, we are seeing growing geographical disparities-Asia and North America continue to perform well, while demand in Europe, our largest market, remains weak. During the quarter and into the beginning of the second, political discourse has also contributed to greater uncertainty, and we maintain close dialogue with our customers to understand how they are reasoning and responding.

Internally, we have continued our efforts to adapt both to current demand levels and to future-proof the Group. Our new, more decentralized organization is well set up to adjust to local conditions and minimize the impact of potential trade barriers, such as tariffs. As a result of this organizational change, from this quarter onward we will report order intake and invoicing in new geographic segments, with the aim of improving transparency.

We have begun adjusting our capacity in Europe in line with the current market conditions, and we are prepared to make further adjustments throughout the year if needed, both upward and downward. Meanwhile, our factory investment in North America is progressing well, aiming to increase capacity and efficiency starting in 2026. In Asia, we are seeing strong growth and are planning for continued expansion.

Improved order situation in the Americas and APAC - lower volumes in Europe generate lower EBITA result
The uncertain and varied market situation in general, but the demand situation in Europe in particular, means that we report a total order intake decrease of five (-5) percent. Northern Europe accounted for weaker demand driven by warehousing, construction and general industry, while the automotive industry continued to be relatively stable. After a relatively weak start to the quarter, activity was somewhat stronger in the latter part of the quarter. In Asia, demand increased significantly in both the automotive and warehouse segments, and in the Americas, demand continued to increase, primarily driven by the warehouse segment.

Invoicing decreased during the quarter by five (-5) percent. Europe performed weaker due to lower order intake in previous quarters as well as in Q1, while the Americas and Asia showed growth compared to the previous year.

Our gross margin continued to develop steadily and was largely in line with our target for the first quarter, despite lower volumes. Continued price discipline, relatively stable and low material costs, and adjustments in our supply chain have helped offset much of the under-absorption effects arising from lower volumes in our European factories.

As in the fourth quarter, our selling and administrative expenses remain relatively high in relation to our sales. These costs are in line with our strategic plan to build a stronger sales organization, increase digitalization, and expand into new markets to gain market share. I am confident that these targeted investments will pay off going forward in the form of higher sales and improved sales efficiency.

Despite solid results in many of our businesses, I am not satisfied with our EBITA margin, which landed at 14,0% compared to 15.5% last year. The margin decrease is mainly a result of lower volumes.

Continued low debt provides opportunities for acquisitions
Our net debt to EBITDA ratio remained low (0.9). Overall, the Group continues to have a stable and strong financial position that enables further investments in profitable organic and acquired growth. In the current macro environment, this may well mean increased opportunities for acquisitions.

As a final remark

With a more decentralized organization, we are better equipped to adapt to market demand - both in seizing opportunities and addressing challenges. In addition to Troax Group being the largest player in our niche, we are the only global actor capable of meeting customers with regional sales and a supply chain that meets global standards. In an increasingly uncertain world, we are well-positioned, providing us with an excellent starting point as well as strong competitive advantages to gain market share going forward.

With the aim of a safer and more productive everyday life,

Martin Nyström, President and CEO

TEAMS WEBINAR

Invitation to presentation of the latest quarter result:

Martin Nyström, CEO, and Anders Eklöf, CFO, will present the results at a Teams webinar on the 23rd of April 2025 at 15:00 CET. The conference will be held in English. For more information, please refer to  https://www.troax.com/investors/press-releases/

For additional information, please contact:

Martin Nyström
President and CEO
martin.nystrom@troax.com
Tel: +46 370 828 31

Anders Eklöf
CFO
anders.eklof@troax.com
Tel +46 370 828 25

This information is information that Troax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on the 23rd of April 2025.

About Troax

Troax Group is the leading global supplier of indoor perimeter protection for manufacturing and warehousing environments.

Troax develops high quality and innovative safety solutions to protect people, property and processes.

Troax Group AB (publ), Reg. No. 556916-4030, is a global company with a strong sales force and efficient supply chain. With local presence we offer excellent customer service and quick deliveries. We are represented in 42 countries and employ roughly 1200 people. The Company's head office is located in Hillerstorp, Sweden and our sales amounted to 279 MEUR (2024)