Wall To Wall Group AB: Wall To Wall Group Interim Report Q1

• A seasonally soft quarter with low activity, signs of market stabilization and anticipated recovery over the year
• Continued efforts to reduce indirect costs and strengthen the gross margin
• Full-year outlook remains unchanged - with a significantly improved adjusted EBITA

SUMMARY OF FINANCIAL PERFORMANCE

SEK million	1 January 2025 - 31 March 2025	1 January 2024 - 31 March 2024	1 January 2024 - 31 December 2024	1 April 2024 - 31 March 2025
Net revenue	204.1	231.6	918.5	891.0
Adjusted EBITDA	13.5	23.7	97.2	86.9
Adjusted EBITDA margin, %	6.6%	10.2%	10.6%	9.8%
Adjusted EBITA	-1.4	9.5	36.7	25.7
Adjusted EBITA margin, %	-0.7%	4.1%	4.0%	2.9%
Operating profit (EBIT)	-26.6	5.7	33.5	1.2
Net earnings	-31.1	4.2	13.8	-21.4
Net debt	202.1	138.2	186.6	202.1
Adjusted EBITDA R12 (proforma)	87.6	115.9	100.5	87.6
Net debt/adjusted EBITDA R12 (proforma)	2.3	1.2	1.9	2.3
Average No. of shares outstanding in the period, before and after dilution	13,511,604	13,783,308	13,671,361	13,604,059
No. of shares outstanding at end of period	13,817,291	13,817,291	13,817,291	13,817,291
Treasury shares	320,532	64,357	291,553	320,532
Basic and diluted earnings per share by average number of shares, SEK	-2.30	0.30	1.01	-1.58

INTERIM PERIOD 1 JANUARY - 31 MARCH

• The Group's net revenue amounted to SEK 204.1 million (231.6), adjusted EBITDA amounted to SEK 13.5 million (23.7) corresponding to an adjusted EBITDA margin of 6.6% (10.2%), and adjusted EBITA amounted to SEK -1.4 million (9.5) corresponding to an adjusted EBITA margin of -0.7% (4.1%). On a comparable and currency-adjusted basis, as well as adjusted for discontinued operations, net sales declined by 9.7%. Cash flow from operations during the first quarter amounted to -5.6 million (11.0)
• Operating profit (EBIT) amounted to SEK -26.6 million (5.7) and was impacted by items affecting comparability, primarily restructuring costs. Items affecting comparability totalled SEK 22.2 million (0.8), mainly pertaining to restructuring costs of SEK 20.9 million (-1.9), including SEK 14.4 million in personnel expenses, along with costs related to system change and implementation, and transaction costs
• The Group's net earnings amounted to SEK -31.1 million (4.2)
• The Group's basic and diluted earnings per share amounted to SEK -2.30 (0.30)

SIGNIFICANT EVENTS DURING THE QUARTER

• In February 2025, it was announced that Wall to Wall Group entered a strategic partnership with the Trelleborg Group to develop the next generation of materials for pipe relining. The new materials will be used and sold under Wall to Wall Group's own brand, providing the group with a unified material solution
• During the quarter, the company repurchased its own shares, corresponding to 28,979 shares, and as of 31 March 2025, treasury shares amounted to 320,532

SIGNIFICANT EVENTS AFTER THE QUARTER

• Wall to Wall Group, through its subsidiary Skånska Högtrycksspolarna AB, has been awarded a significant contract as the primary contractor for flushing services by Regionfastigheter, part of Region Skåne. The contract covers pipe flushing and pipe relining across several locations within the region, including Malmö, Helsingborg, Lund, and Kristianstad. The contract extends over an initial two-year period with an option for a two-year renewal and is estimated to be worth approximately SEK 30 million for flushing services. The total contract value may further increase as additional pipe relining and additional related services are included
• Wall to Wall Group, through its subsidiary Slamsugningstjänst i Halland AB, has been awarded a significant framework agreement for emptying services by Halmstads Energi och Miljö AB. The contract covers the emptying of sludge from individual sewage treatment systems, grease waste from grease separators, and food waste from individual food waste tanks throughout Halmstad municipality. The contract extends over an eight-year period and is estimated to be worth approximately SEK 30 million

OUTLOOK

• Activity during the seasonally soft start of the year was overall lower than expected, but the market is showing signs of stabilization. Many necessary investments in the real estate sector that had previously been postponed are expected to drive a recovery during the year in both pipe relining and energy-saving solutions. Flushing services continue to perform well and are expected to grow through new contracts and geographic expansion. Combined with lower indirect cost and a more coordinated and efficient organization, a significantly improved operating result (adjusted EBITA) is expected for 2025 compared to 2024. The outlook remains unchanged from previously communicated guidance

CEO André Strömgren comments

Wall to Wall Group sees signs of recovery emerge despite a soft start to the year, with Q1 activity below expectations. Improved finances within key customer groups are expected to support a turnaround in relining and energy efficiency related services.

The Group is making clear progress in reducing indirect costs. A more unified and efficient organization is being established, with the aim of reducing indirect costs to below 20 percent of net sales during the year - corresponding to an annualized level below SEK 180 million.

The ongoing material collaboration with Trelleborg is progressing as planned. In parallel, the Group is taking the final step in uniting its operations together under a single brand. The transition to standardized working methods in production is expected to strengthen the gross margin, while the branding initiative marks a shift in how Wall to Wall builds customer relationships and positions itself in the market.

In summary, a more stable market - together with a more scalable and cost-efficient organization with significantly lower indirect costs - is expected to significantly improve operating profit for the full year.

For full interim report, see appendix.

Contacts
André Strömgren, CEO & CFO
[phone]
[e-mail]

About Wall to Wall Group AB
Wall to Wall Group is primairly active within property related pipe flushing and relining. Wall to Wall's customers mainly consist of commercial property managers and housing cooperatives. Wall to Wall Group has a clear growth strategy with a focus on both acquisitions and organic growth, including through greenfieldings in new locations. The head office is located in Stockholm.

This information is information that Wall To Wall 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 persons set out above, at 2025-04-30 08:00 CEST.