Q1 2025 Ependion AB Earnings Call Transcript
Key Points
- Order intake increased by 5% overall, with Westermo contributing 2% and Beijer Electronics 8%.
- The acquisition of Welotec is expected to strengthen Ependion AB's position in the energy segment and provide access to new edge computing technology.
- Westermo maintained a stable and relatively high profitability level at 15.7%, despite acquisition-related costs.
- Beijer Electronics saw an 18% increase in order intake for its key product range, HMIs.
- The new X3 product family from Beijer Electronics received the Red Dot Award for design in 2025.
- Sales were lower than the previous year, driven by both business entities.
- The group's profitability level was unsatisfactory at 9%, impacted by negative currency effects and nonrecurring cost items.
- Beijer Electronics reported a weak profitability level of 6.7% due to negative FX impacts, an unfavorable product mix, and restructuring costs.
- The company faces high uncertainty due to trade barriers and tariffs, impacting future outlooks.
- Free cash flow was negative at SEK12 million for the quarter, indicating cash flow challenges.
Thank you. Hi, everyone, and welcome to the quarter one update for Ependion. As usual, it is myself and Joakim Lauren hosting the call, myself being in Västerås today and Joakim is in Malmö. So the agenda is almost as usual with one exception. We are going to share a say a few words on the recent acquisition of Welotec. Apart from that, the agenda looks like it usually does.
So let's move into a business update for the quarter then in general. Well, it was an eventful first quarter for Ependion, lots of activities and progressive investments in combination with a cost-saving program, as you have probably seen. The highlight for the quarter was that order intake increased by 5%, and both business entities contributed to this, Westermo with 2% and Beijer Electronics with 8%. Sales, however, came in lower than last year, driven by both business entities.
Could be important to remember that Westermo, in particular, had a very strong comparison quarter in 2024 due to some catching-up effects from the component crisis in '23.
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