THE PERIOD 1 JANUARY - 31 MARCH 2025
- Net sales decreased by 20.1 percent to 29.4 MSEK (36.9). Adjusted for currency effects between the comparison periods, net sales decreased by 20.8 percent.
- Order intake decreased by 29.6 percent to 21.5 MSEK (30.5). Adjusted for currency effects between the comparison periods, order intake increased by 30.0 percent.
- Operating profit before depreciation (EBITDA) amounted to -4.1 MSEK (-9.1) and operating profit before financial items (EBIT) amounted to -6.2 MSEK (-11.4).
- Profit before tax amounted to -6.7 MSEK (-12.4).
- Earnings per share amounted to -0.5 SEK (-0.9).
- Cash flow amounted to -13.9 MSEK (-5.4). of which -3.3 MSEK (-13.5) from operating activities, -1.0 MSEK (-1.2) from investing activities, and -9.7 MSEK (9.4) from financing activities.
- Cash and cash equivalents amounted to 19.4 MSEK (45.4) at the end of the period.
- Mikael Lindbäck, CFO, is going on parental leave - Linus Nätterlund appointed interim CFO.
- FlexQube is participating in Expo Manufactura, the largest intralogistics fair in Mexico, as well as ProMat, the largest intralogistics fair in the USA, as part of intensified marketing activities during 2025.
EVENTS AFTER THE END OF THE QUARTER
- The first AMR project in Mexico has been installed. The delivery included 4 Navigator AMRs along with load carriers to a global truck manufacturer.
- The Board has decided to repurchase the former CEO's options amounting to 220,000 from three different programs, and that the repurchased options shall be cancelled. This results in a reduced dilution of approximately 1.6%.
Link to the report for the first quarter 2025: https://flexqubegroup.com/financial-information/
The entire quarterly report is also attached to this press release.
CEO LETTER
Strong gross margin and improved earnings despite lower sales compared to the previous year
Sales during the quarter amounted to 29.4 MSEK, which is 20 % lower than in the first quarter of last year. Our challenge going into 2025 has been a decreased order book compared to the previous year. During this transitional period, where we have adapted our organization to better meet a growing demand for our automation products while the vehicle market remains more restrained, sales volumes have been lower for some time.
Despite this, we have managed to maintain high margins and improve our operational efficiency. Our assembly costs in relation to sales have improved and are a major contributing factor to the improved margin during the quarter. Compared to the same period previous year, the gross profit has increased with 1.3 MSEK, reflecting an improvement in the gross margin by 17 percentage points.
At the EBITDA level, the result amounted to -4.1 MSEK, which is 5 MSEK better than Q1 2024, despite 20 % lower sales volumes. This improvement occurred despite higher marketing expenses as we participated in two major trade shows during the quarter, one in the USA and one in Mexico. Both events were successful, and we are currently working on several large new projects that originated from contacts made at these events.
Order intake during the quarter amounted to 21.5 MSEK. The beginning of the quarter was weak, but order intake improved somewhat towards the end. We are not satisfied with this level, but our strong growth in the project portfolio leads me to believe that we can expect an improvement in the coming quarters as more projects from our pipeline are converted into orders.
The growth in our project pipeline is strong, and we continue to add new projects across all our product lines. It is primarily in North America that we are seeing the largest increase, but the United Kingdom is also performing better than usual in relation to its historical share of order intake.
Despite the tariff situation, our customers report that the vast majority of projects are proceeding according to plan. However, the final outcome remains uncertain. We are working intensively to secure orders and sales. Our customers in the automotive and commercial vehicle industries are the most affected by the ongoing trade war, even though conditions change on a weekly basis. In segments such as energy and HVAC, we continue to see more stable demand.
Personally, I believe that the bottom has been reached in the automotive industry and that we will see a gradual improvement over the coming quarters, as the situation becomes clearer for both OEMs and subcontractors. The need for investments in equipment that improves safety and efficiency is significant, and I would say that most companies have underinvested for many years now.
Cash flow from operating activities improved significantly compared to Q1 2024. We are strongly focused on reducing our inventory and improving payment terms with customers to accelerate incoming payments.
We have reduced the credit facility with Danske Bank by 10 MSEK, which negatively affects the financial cash flow by the same amount during the quarter.
Even though we already have over 1.200 customers globally, in 2025 we have been added as a supplier to several new, prominent companies. Our customer base is one of our most valuable assets and holds significant growth potential. Sales to existing customers can grow substantially, and our access to these Fortune 500 companies can be leveraged even further.
During the quarter, we signed a distribution agreement with Transpofix GmbH regarding the sale of their cart systems for tugger trains. Transpofix also has the opportunity to sell our products to new or existing customers. We have already had joint projects in Canada, Mexico, and the United Kingdom, and we look forward to further developing our collaboration.
Over the past year, we have implemented three efficiency programs to improve our cost structure, reshape the organization, and lower our break-even level. Since we serve customers in three main markets (USA, Mexico, and Europe), we have a certain level of fixed cost structure. However, our capacity to handle large-scale projects remains unchanged, even though the organization is now smaller and more agile. More people within the organization are now working directly with customers, we work in teams to improve the sales process, and we support each other in creating successful and targeted proposals.
Aftermarket, support, and service are becoming increasingly important as we scale up sales of robotic products. The ecosystem effect within automation is clear - both customers and we are investing in a product and a process, making it much more natural to continue growing within the same network of hard- and software.
I must say that I personally had not planned for or expected a 2025 with so many macroeconomic challenges. I felt that we had already had our fair share with Covid and the war in Ukraine this decade, and we would have gladly avoided another major crisis. But as we all know, this crisis too shall pass, and it is important to stay agile, find ways forward, and stick to one's strategy with determination.
At FlexQube, we are confident in our products and our offering within material handling, and there is still enormous growth potential. One cart per employee in the manufacturing industry is a rule of thumb - but as we begin to replace people with autonomous units, the potential increases tenfold. Our customers are at different stages of their journey, but we have the products to support them from start to finish.
For more information, contact:
CEO, Anders Fogelberg
anders.fogelberg@flexqube.com
+46 702 86 06 74
About FlexQube
FlexQube is a technology company headquartered in Gothenburg, Sweden with subsidiaries in USA, Mexico, Germany and England. FlexQube offers solutions for cart-based material handling using a patented modular concept. FlexQube develops and designs customized solutions for both robotic and mechanical cart logistics. Through the own developed and unique automation concept FlexQube can offer robust and self-driving robotic carts. FlexQube has more than 1200 customers in 40 countries with primary markets being North America and Europe.
FlexQube's customers can be found within the manufacturing industry, distribution- and warehousing. We represent some of the most successful companies in the world with a significant share being represented on the Fortune 500 list. These companies exist within automotive, electric vehicle manufacturing, online retail, heavy-duty trucks, industrial automation and retail logistics.
This information is information that FlexQube 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 2025-05-14 08:00 CEST.
