In the interim report for January to March 2025, VBG Group reports financial stability despite challenging market conditions.
First quarter of 2025
- Consolidated sales decreased 12,0% to SEK 1 351,3 M (1 535,0).
- Organic growth amounted to -12,9 procent (5,6), adjusted for acquired sales and currency effects between the years.
- Consolidated operating profit (EBITA) totaled SEK 177,4 M (259,5), with an operating margin (EBITA) of 13,1% (16,9).
- Profit after financial items amounted to SEK 151,5 M (250,3).
- Earnings per share amounted to SEK 4,58 (7,83) before and after dilution.
Comments from VBG Group's President & CEO Anders Erkén
In the first quarter of 2025, VBG Group's net sales decreased by 12 percent to SEK 1,351 M (1,535), reflecting reduced demand in key regions such as North America and Europe. Operating profit (EBITA) for the quarter amounted to SEK 177 M (260), with an EBITA margin of 13.1% (16.9). Despite declining sales volumes, we were able to maintain good gross profit margins through efficiency improvements and good cost control.
Tariffs were a key topic in the first quarter of 2025 owing to the introduction of increased tariffs on imports to the US. VBG Group is well positioned with three production facilities in the US, us solid grounds for addressing these challenges.
Our offroad segment will not be impacted by the tariffs to the same degree, since air conditioning systems fall under the trade agreement between the US, Mexico and Canada. We will implement price increases to counteract the effects of increased costs for steel and aluminum. However, the impact on our bus air conditioning operations in the US will be greater, due mainly to imports of Chinese components, and here too we will raise prices to compensate for the increased costs resulting from these tariffs.
This, together with continued efforts to optimize our production and value chain to address the new challenges in the market, means that the direct net impact of the tariffs on our operations will be marginal. However, the indirect effects - that is, how demand will be impacted over the longer term -are difficult to predict.
Our divisions
Truck & Trailer Equipment posted a strong first quarter, with sales on a par with the record-high first quarter of 2024. The downturn in the semitrailer segment has now bottomed out, and we are seeing a turnaround toward future growth.
Mobile Thermal Solutions had a weak start to the quarter due to supply chain problems among bus manufacturers, but sales recovered late in the quarter. The downturn for the quarter relates in its entirety to public transportation buses in the US and to the compact segment of offroad vehicles. Despite the decline in volume, Mobile Thermal Solutions managed to maintain its gross profit margin in a manner that inspires confidence.
Ringfeder Power Transmission had a slower start in the first quarter of 2025 in terms of both volume and product mix compared to the first quarter of 2024, which was a strong quarter for the division. Despite this, we see that the growth in the pace of order bookings has remained positive during the quarter, which is a sign that volumes will strengthen in the latter part of 2025.
Strategy for growth
In the first quarter of 2025, VBG Group continued its journey of strategic growth expanding the Group's sales, growing 25% outside Europe and North America. This is largely attributable to the acquisition of Italytec Imex Indústria e Comércio Ltda., by Mobile Thermal Solutions in January 2025. With this acquisition, we are broadening our customer offering and strengthening our presence in Brazil and South America, in line with our growth strategy. It is VBG Group's ambition to grow its presence outside of its core markets of North America and Europe. The recent acquisitions of Rathi Transpower and Italytec are fully aligned with this strategy and promote this goal.
In April 2025, VBG Group completed yet another important acquisition when Truck & Trailer Equipment acquired the Swedish company Ledson Lights AB. This acquisition will enable us to strengthen our accessory and aftermarket business.
The future
With a strong financial position, a balanced business portfolio and the support of our strong brands, we are well equipped to address future challenges and to continue creating profitable and sustainable growth.
There is considerable uncertainty about the outlook given the implications of the changes taking place in trade relations. At the end of the quarter, we see that order intake is on par with the first quarter of 2024, which is a positive sign for the future.
I would like to thank all our skilled and hard-working employees for their fantastic efforts, and at the same time welcome our new colleagues from Italytec and Ledson Lights to the Group. I am convinced that, with our shared expertise and joint efforts, we will continue developing VBG Group and create a safer society together.
Contact
Anders Erkén
President & CEO VBG Group
Telephone: +46 521 27 77 88
E-mail: anders.erken@vbggroup.com
About Us
VBG Group AB (publ), domiciled in Vänersborg, is the Parent company of an international engineering Group with wholly owned companies in Europe, North America, Brazil, South Africa, India, Australia and China. The Group's operations are divided into three divisions - Truck & Trailer Equipment, Mobile Thermal Solutions and Ringfeder Power Transmission - with products that are marketed under strong, well-known brands. VBG Group AB's Series B share was introduced on the stock exchange in 1987 and is listed today on the Nasdaq Stockholm Mid Cap list.
This information is information that VBG Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-28 10:00 CEST.
