Release Date: July 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CTEK AB (OSTO:CTEK, Financial) has a strong consumer brand with partnerships with over 50 premium vehicle manufacturers, including Lamborghini.
- The company reported an improved gross margin of 56.3% due to a favorable product mix.
- CTEK AB (OSTO:CTEK) achieved a second consecutive profitable quarter for its professional division at the EBITDA level.
- The company is focusing on expanding its market with new product categories, such as premium boosters and power solutions, expected to significantly impact growth from 2026 onwards.
- CTEK AB (OSTO:CTEK) has a strong financial position with a net debt ratio of 1.8, well below its target of 3 times, allowing for potential M&A opportunities.
Negative Points
- CTEK AB (OSTO:CTEK) experienced a decline in revenue to SEK197 million from SEK212 million in the same quarter last year.
- The professional division saw a 6% organic decrease in volume, primarily due to the cancellation of a contract with General Motors.
- The EBITDA margin for the professional division was lower than expected at 3%, down from 6% in the previous quarter.
- The EVSE segment is experiencing low market activity, impacting overall sales and requiring increased volumes for improved profitability.
- Geographical mix negatively affected gross margins in the consumer segment, with high-margin markets like Australia not performing as strongly as before.
Q & A Highlights
Q: Can you provide details on the sales decline in the professional division related to General Motors?
A: Sales to General Motors in the comparable quarter were SEK15 million. The decline in sales is primarily due to the cessation of this contract. - Henrik Fagrenius, President and CEO
Q: Why isn't the EBITDA margin higher in the professional division despite the absence of GM orders?
A: The current EBITDA margin is volume-based. We have the right cost base and product profitability, but we need more volumes, especially in the EVSE segment, to improve profitability. - Henrik Fagrenius, President and CEO
Q: When do you expect the German market to impact sales?
A: We will introduce the product late this year, with the main impact expected in 2026. - Henrik Fagrenius, President and CEO
Q: What are your assumptions for the EVSE segment's growth in 2027 and 2028?
A: We anticipate entering larger markets like the UK and Germany, and expect the current hesitant market situation to improve, contributing to growth. - Henrik Fagrenius, President and CEO
Q: Do you foresee any potential M&A activities?
A: M&A is considered a possible accelerator to reach our financial goals, and our stable financial situation allows us to explore such opportunities. - Henrik Fagrenius, President and CEO
Q: What needs to happen for customers to become less hesitant in the consumer segment?
A: Increased certainty regarding tariffs could boost consumer demand and encourage distributors and retailers to take on more stock. - Henrik Fagrenius, President and CEO
Q: What are your expectations for online sales going forward?
A: Online sales have been developing strongly and are expected to continue as a significant channel for growth. - Henrik Fagrenius, President and CEO
Q: Will the new products drive up CapEx in the second half of the year?
A: No, we will maintain our CapEx budget by reallocating focus within existing resources. - Henrik Fagrenius, President and CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
