Q1 2025 Prevas AB Earnings Call Transcript

May 06, 2025 / 07:30AM GMT
Release Date Price: €8.6 (-1.38%)

Key Points

Positve
  • Prevas AB (LTS:0H2J) reported a 6% growth in turnover for Q1 2025, driven by acquisitions.
  • The company achieved an improved EBITA margin in Finland compared to Q4 2024, indicating positive progress.
  • Prevas AB (LTS:0H2J) maintained a strong cash flow, with an increase from operating activities by 19% compared to Q1 2024.
  • The acquisition of OIM Sweden is expected to strengthen Prevas AB (LTS:0H2J)'s position in the Malmo region, creating a strong product development hub.
  • The company is experiencing strong demand and growth in the defense and energy sectors, with increased sales resources and investments in these areas.
Negative
  • Prevas AB (LTS:0H2J) reported a reduced organic growth for Q1 2025 due to lower utilization and reduced capacity in some regions.
  • The EBITA margin of 8.3% fell short of the company's financial target of 12%, indicating room for improvement.
  • The market demand remains flat in several sectors, with low demands in some regions and high competition in IT services.
  • The geopolitical situation and tariff discussions have created uncertainty, affecting larger investment decisions by customers.
  • The company's Finnish operations continue to struggle with low EBIT margins, despite some improvement in Q1 2025.
Operator

Hello and welcome to today's webcast with the Prevas. With us presenting today, we have the CEO Magnus Welen and CFO Helena Burstrom. (Operator Instructions)

And with that said, please go ahead with your presentation.

Magnus Welen
Prevas AB - Chief Executive Officer

Thank you very much. My name is Magnus Welen and I'm the CEO of Prevas. And as you said, together with me today I have.

Helena Burstrom
Prevas AB - Chief Financial Officer

Helena Burström, CFO. Hello.

Magnus Welen
Prevas AB - Chief Executive Officer

And the agenda for this short meeting will be -- we start with an introduction. We will have a review of our financial performance of the quarter. We will have a view on the market, a short market update, and then we will finalize the meeting with the Q&A session. And I hope that you all have very good questions for the Q&A session after the presentation.

Okay, looking into the first quarter of 2025 for Prevas. The turnover was

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