JANUARY-MARCH 2025
- Net sales increased by 1% to SEK 958.3 million (950.6). In USD, net sales decreased 2%. For comparable units, net sales decreased 5% in SEK, and 8% in USD.
- Order intake increased 5% to SEK 1,013.7 million (969.7), and in USD order intake increased 2%. Order intake for comparable units decreased 2% year-on-year in SEK and was 5% lower in USD. Book to bill amounted to 1.06.
- EBITA decreased to SEK 100.0 million (142.6), representing an EBITA margin of 10.4% (15.0). SEK 0.1 million was charged to EBITA relating to transaction costs. The costs for NCAB's new IT platform amounted to SEK 10.5 million (8.5), which include depreciation for 2025. Currency had a negative impact on earnings of approximately SEK 4 million in 2025, while in 2024 it had a positive impact of approximately SEK 4 million.
- Cash flow from operating activities was SEK 53.3 million (92.9).
- Operating profit was SEK 82.7 million (127.4).
- Profit after tax was SEK 52.0 million (89.8).
- Earnings per share before and after dilution were SEK 0.28 (0.48).
SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER
- On 23 April, an agreement was signed to acquire 100% of the shares in B&B Leiterplattenservice GmbH in Germany.
- On 24 April the board of directors of NCAB has decided to withdraw the previously announced dividend proposal ahead of the annual general meeting on 8 May 2025. The board of directors therefore proposes that no dividend shall be paid to shareholders for the 2024 financial year.
MESSAGE FROM THE CEO
Focus on flexibility and adaptability in turbulent times
At the present time, it is difficult to comment on the past quarter without acknowledging that we are in a time of uncertainty, with significant risks but also opportunities.
The year began with an improved order intake of SEK 1,014 million, compared with an average of approximately SEK 900 million in the third and fourth quarters of 2024, and a continued clearly positive book-to-bill. Last year's positive growth trend in North America and East continued in the quarter and order intake far exceeded the first quarter of 2024. Nordic and Europe also recovered from the weak second half of 2024, although organic order intake remained lower than in the relatively strong first quarter of 2024. The improvement in order intake partly reflected the stronger demand but was also the result of new business. After the end of the quarter, we completed the acquisition of B&B Leiterplatten in Germany. In addition to contributing annual sales of approximately SEK 150 million, the company will also strengthen our position in eastern areas of Germany.
Net sales were in line with expectations based on the order intake in the third and fourth quarters of 2024. Nordic could now report growth in net sales following the improvement in order intake in the second half of 2024. In the Europe segment, net sales also returned to a more normal level, linked to the improved order intake in the fourth quarter. East noted strong growth in net sales while book-to-bill was clearly positive.
Earnings in the quarter were weaker year on year as the gross margin was negatively affected. In addition to challenging comparative figures in 2024, when purchase prices fell before being passed on to customers, the volatility in recent months of the USD against the SEK and other currencies also resulted in negative currency effects.
After the quarter, the trade war between the USA and other regions has accelerated. The American tariffs are something we will pass on to the market in the same way as in the past. Our flexible business model with external manufacturing partners offers us a competitive advantage in an environment with varying trade barriers as we can transfer manufacturing to our partners in countries that offer the best options. Of our sales to North America in 2024, just under 50 per cent had been manufactured in China. The tariffs have so far not had a significant impact on NCAB but we are cautious that they have the potential to dilute our gross margin and increase our working capital. The escalating trade war may also counteract the first signs of market improvements that have begun to emerge. The Board has decided - given the increasingly volatile market conditions - to withdraw the proposed dividend and prioritize additional financial flexibility.
We intend to leverage this situation to help our customers adapt their supply chains to the new conditions - this is one of the strengths of our business model.
"Our flexible business model offers us a competitive advantage"
Peter Kruk
President and CEO, NCAB Group AB
NCAB Group is publishing the interim report for 2025, January-March, on Friday 25 April at 7:30 a.m. CEST. A web-cast teleconference will be held at 10:00 a.m. CEST on the same date, where President and CEO Peter Kruk
and CFO Timothy Benjamin will present the report. The presentation will be followed by a Q&A session. The presentation will be held in English. For those who wish to participate via webcast, please use the link below: https://ncab-group.events.inderes.com/q1-report-2025
For those who wish to participate via teleconference, please register on the link below. After registration, you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.inderes.com/teleconference/?id=5006976
FINANCIAL CALENDAR
Annual General Meeting 8 May 2025
Interim report second quarter 22 July 2025
Interim report third quarter 24 October 2025
Year-end report 2025 13 February 2026
For further information, please contact:
Gunilla Öhman, IR Manager, Telephone: +46 707 63 81 25
E-mail: gunilla.ohman@ncabgroup.com
About NCAB
NCAB is a worldwide leading supplier of printed circuit boards, listed on NASDAQ Stockholm. NCAB is offering PCBs for demanding customers, on time with zero defects, produced sustainably at the lowest total cost. NCAB was founded in 1993. Since its foundation, the operations have been characterized by an entrepreneurial and cost efficient culture and have over time showed strong growth and good profitability. Today, NCAB has local presence in 19 countries in Europe, Asia and North America. Revenues in 2024 amounted to SEK 3,614 million. Organic growth and acquisitions are part of NCAB's strategy. For more information about NCAB Group please visit us at www.ncabgroup.com.
This information is information that NCAB Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person[s] set out above, at 2025-04-25 07:30 CEST.