Release Date: July 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Addtech AB (ADDHY, Financial) reported a strong start to the fiscal year with a 7% increase in net sales, including 1% organic growth.
- The company achieved an 11% growth in EBITDA, with a margin improvement to 15.8% from 15.3% in the same quarter last year.
- Addtech AB (ADDHY) maintained a strong cash flow and completed two acquisitions during the quarter, enhancing its strategic niches.
- The Energy segment delivered exceptional growth, driven by strong organic sales and a favorable product mix.
- The company's financial position remains robust, with low gearing and leverage, providing ample room for future growth and acquisitions.
Negative Points
- The Automation business area faced challenges with weak sales development, negatively impacting earnings due to low demand in previous quarters.
- Currency effects had a negative impact on the financial results, with a 4% adverse effect on net sales.
- The Process Technology segment experienced delays in project deliveries, affecting sales negatively.
- The book-to-bill ratio was slightly below one, indicating potential challenges in maintaining order intake momentum.
- The market for special vehicles and the sawmill industry, while showing some improvement, remains uncertain and from relatively low levels.
Q & A Highlights
Q: Could you explain the margin dynamics in the Energy segment, which delivered a strong result this quarter?
A: Niklas Stenberg, President, CEO, and Director, explained that the strong quarter in Energy was due to a combination of strong incremental margins from organic growth and contributions from acquisitions. He noted that while the market is favorable, the exceptional growth seen this quarter may not be sustainable in the future due to tough comparisons ahead.
Q: Was the volume in the Energy segment higher than expected this quarter?
A: Niklas Stenberg confirmed that the volume was indeed higher, particularly in the transmission and distribution side, which is project-related. This led to a strong quarter in terms of volume.
Q: Can you explain the margin drop in the Automation segment and any one-off costs involved?
A: Niklas Stenberg stated that the Automation segment remains weak due to the general industry climate and lower demand in previous quarters. The margin drop is related to lower sales volume, but gross margins remain good. There were no significant one-off costs this quarter, but ongoing efforts are being made to adjust costs.
Q: What are the positive developments in the forestry and sawmill industry within Industrial Solutions?
A: Niklas Stenberg noted that while the sawmill sector has been weak, there are positive signs with some projects signed recently. However, it is too early to declare a new trend, but there is some improvement.
Q: Could you quantify the M&A contribution to EBITDA year-over-year, and are there any seasonal effects to consider?
A: Niklas Stenberg explained that the majority of growth this quarter came from acquisitions, with some organic growth as well. There are no significant seasonal effects, but some acquired companies have project-related businesses that can vary quarterly.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
