Improved EBITA margin and increased order backlog in all countries during the quarter
• Net sales fell by 5 percent, to SEK 6,888 (7,275) million
• The order backlog was SEK 15,586 (17,835) million
• EBITA increased by 4 percent, to SEK 307 (294) million
• The EBITA margin increased to 4.5 (4.0) percent
• Profit after tax increased and amounted to SEK 228 (202) million
• Cash flow from operating activities was SEK 280 (399) million
• Net debt amounted to SEK -2,156 (-2,071) million
• Basic and diluted earnings per share increased to SEK 1.11 (0.98)
CEO statement
The EBITA margin improved in all countries, while cash conversion and the low debt continue to exceed our targets. We are reporting an acceptable result in Denmark, where development is now going according to plan, and I expect continued gradual improvement going forward. Although demand remains low in the Nordic, I note that the level of market activity is improving in many places and interesting customer discussions are being held. My view is that the uncertain global situation is temporarily pausing our customers' plans. The order intake increased in Norway, Denmark and Finland, and the order backlog increased in all countries.
Net sales and EBITA
I am pleased that in a tough market we can increase both margin and earnings despite declining sales. Margin before volume through strict project selection and cost control means that we manage to increase margins in all countries.
In the current market conditions, there are no shortcuts to achieving a good outcome; margin before volume is more important than ever. Our careful project selection in the still challenging market situation led to a decrease in sales in our installation business in all countries. However, there are large geographical differences in demand for both installation and service. To some extent, the fall is offset by increased sales from infrastructure projects, where we are a key market participant and demand remains strong.
The order intake rose in Norway, Denmark and Finland. In Sweden, the order intake decreased by 10 percent, but the order intake in the first quarter of 2024 was strong as we received two large orders totalling approximately SEK 700 million. It is very positive that we increased our order backlog in all countries during the quarter. The weak market situation in southern Sweden has led to organisational adjustments, reduced sales and downward pressure on profitability. The business in southern Sweden lost 19 percent of its volume compared to the first quarter of 2024, corresponding to approximately SEK 250 million. In the other parts of the business in Sweden, there was stability in terms of sales and margin.
The Norwegian business improved its project margins, leading to higher profitability. Organic growth was negative, as we had high production in a number of large projects in 2024. A number of good customer dialogues are underway which can hopefully help to replenish the order backlog. However, the project market in Norway remains challenging and the most important thing is to take on the right projects at a good margin.
Our Danish business continues to develop in a positive direction. During the quarter, profitability improved significantly; this is in line with my previously communicated expectations. We also achieved organic growth in the quarter as a result of strong growth in service. I expect a gradual improvement in profitability, as new orders have a good margin and we are increasing our service sales. However, there are still some unprofitable projects in the order backlog that will be completed in 2025, and my assessment is that we now have a robust and profitable foundation for the business in Denmark.
Our Finnish operations saw a decline in sales in installation but growth in service. Despite the weak market and careful project selection, the order intake and order backlog increased during the quarter.
Strong cash flow and low debt
Cash flow from operating activities and cash conversion remained strong, at 101 percent. Net debt remains low, which enables continued profitable acquisition activities
Acquisitions
In these times of weak and uncertain market conditions, I see another advantage to our acquisition model. Our model with a focus on integration and synergies, where we take a very long-term view in our work with our acquired companies, builds a robust organisation for the future. Customers, suppliers and employees can feel secure that the acquired business will become part of Bravida's financial strength and robustness.
We continue to see good opportunities to make acquisitions and are actively working with several potential candidates. As always, we focus on selecting the right acquisition candidates, which have a suitable culture and create value for Bravida.
Sustainability
At Bravida, we take a long-term approach to sustainability in order to help push society in the right direction, and be a good supplier to our customers, a good employer and a leading stakeholder in the industry. I am proud that the hard work we are putting into reducing workplace injuries is paying off. The LTIFR was unchanged at 5.6, which is close to our current target of 5.5. The electrification of our vehicle fleet is reducing our carbon footprint, and during the last 12 months we reduced emissions from our vehicles by 15 percent, and by 38 percent from 2020 in relation to sales.
Outlook
For Bravida, I believe that the demand for service activities will remain stable. The volume in installation will gradually improve, and benefit from the need for renovations, infrastructure and, to some extent, new build construction. I note much better activity in the market, with more enquiries and interesting discussions, not least relating to infrastructure.
However, there are considerable geographical differences in the demand for installation work relating to building construction. The markets in southern Sweden and Finland are still weak, whereas the market situation in the rest of Sweden, Denmark and Norway is generally stable, but with considerable geographical differences. We generally expect an uncertain and hesitant market in 2025, impacted by the weak construction market and increased uncertainty in the world in general, which may lead to supply problems and higher costs for materials. For 2026-2027, the outlook is much brighter, with increased demand for installation in new builds and renovation projects relating to residential and office properties, according to external forecasts.
The demand for installation projects in the infrastructure, industrial, defence and civil engineering sectors remains stable. Other market drivers include the ongoing electrification and digitalisation of society.
Mattias Johansson,
Stockholm, May 2025
The report will be presented at 09:30 CEST by CEO and Group President Mattias Johansson and CFO Åsa Neving. The presentation will be held in English and can be followed online or by phone.
Link to webcast
https://bravida.events.inderes.com/q1-report-2025
Telephone conference
To participate in the conference call, please register via this link: https://conference.inderes.com/teleconference/?id=50050314. After registration, you will be provided with telephone numbers and a conference ID to access the conference. There will be room for questions in the telephone conference.
The report and presentation will be available at: https://investors.bravida.com/en/reports-and-presentations
For further information, please contact:
Peter Norström, Head of Investor Relations
peter.norstrom@bravida.se
+46 8 695 20 07
This disclosure contains information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 6 May 2025, 07:30 CEST.
Good properties make a difference - that's why Bravida exists. As one of the Nordic region's leading suppliers of end-to-end technical solutions in service and installation, we help our customers create effective and sustainable properties.
Bravida's long-term goal is to be carbon-neutral throughout the value chain by 2045. We have 14,000 employees and a presence in about 190 locations in Sweden, Norway, Denmark and Finland. Bravida's shares are listed on Nasdaq Stockholm. www.bravida.com