Q1 2025 Afry AB Earnings Call Transcript
Key Points
- The Energy division experienced strong growth, driven by high demand related to the energy transition.
- Order backlog increased by 4% sequentially, adjusted for currency effects, indicating strong future project commitments.
- Several new client projects were won, including an automated forest plant production factory and an offshore wind farm in Estonia, showcasing Afry AB's role in sustainable initiatives.
- The Infrastructure division delivered slight growth due to higher average fees and attendance rates, despite a challenging real estate market.
- Management Consulting division saw high demand for its energy offering and growing interest in sustainability consulting.
- Sales and profitability declined slightly, pressured by weak markets in Industrial & Digital Solutions and Process Industries divisions.
- Profitability was impacted by a slow ramp-up at the beginning of the quarter and a negative calendar effect, reducing EBITA by SEK 37 million.
- The global business environment faced increased uncertainty due to the global tariff situation, potentially affecting client investment decisions.
- Utilization rates dropped to levels not seen since the 2008 financial crisis, indicating inefficiencies in resource management.
- The Agency Work Act continued to impact profitability, particularly in the Industrial & Digital Solutions division, causing client uncertainties.
Hello, everyone, and a warm welcome to AFRY's presentation of the Q1 results for 2025. I am Linda Palsson. I'm the CEO of AFRY, and I will present the quarter here today, together with our CFO, Bo Sandstrom. After the call, we will, as always, open up for questions. So make sure to join us in the quarter.
Okay. To summarize then the first quarter, we had a rather modest start to the year, with a slight decline in sales and profitability that was pressured in some of our divisions. These results reflect the market we experience, but it also underline the need for structural measures going forward. The slight decline in sales was mainly due to weak market in parts of our division, Industrial & Digital Solutions and Process Industries. This was partly offset by a strong growth in the Energy division, where we continue to see good demand driven by the energy transition.
The order backlog was solid, and it increased by 4% sequentially adjusted for currency effect. And I am very glad to see that we continue to win
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