Q1 2025 Kempower Oyj Earnings Call Transcript
Key Points
- Kempower Corp (STU:D9C) reported a 32% growth in order intake for Q1 2025, indicating strong sales execution.
- The North American market saw a record quarter with a 300% increase in order intake, showcasing significant growth potential.
- The company onboarded 11 new customers in Q1 2025, reflecting successful customer acquisition strategies.
- Kempower Corp (STU:D9C) has reduced its inventory levels for the second consecutive quarter, improving operational efficiency.
- The company maintains strong liquidity with cash balances of EUR 50 million and existing facilities totaling EUR 108 million, ensuring financial stability.
- Revenue growth was modest at 2%, impacted by a low order backlog at the start of the year.
- The operative EBIT was negative EUR 7.3 million for the quarter, indicating profitability challenges.
- Operating cash flow was negative by EUR 7.5 million, affected by increased trade receivables.
- The company faces price pressure in the market, which could impact gross margins in the future.
- Warranty costs remain elevated, with EUR 4.4 million booked in Q1 2025, highlighting ongoing quality and cost management issues.
(video playing)
Hi, everyone, and welcome to this webcast where we present Kempower's financial results for the first-quarter 2025. My name is Paula Savonen, I am the VP of Communications at Kempower and the host today.
Today, we have three presenters. We have our CEO, Tomi Ristimäki; our CFO, Jukka Kainulainen; and today, we have also Monil Malhotra, our President for North America straight from North Carolina, our Durham office. Nice to have you with us, Monil.
(Event Instructions) I hope you enjoyed the presentations. And now, over to Tomi.
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Welcome from my side as well for Kempower Q1 webcast. So strong sales execution. So I think the best figure for Q1 is definitely the 32% growth in order intake. And then reminding you also that it was the second continuous quarter that we our order intake is bigger than revenue, which is really pointing in the growth. I think
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