Instalco Ab · OMXSTO:INSTAL
Instalco Ab — Q1 2025 Earnings Presentation
19 slides from Instalco Ab's earnings presentation, Apr 29, 2025
Slide 1: Q1 2025 presentation
Q1 2025 presentation 29 April 2025
Slide 2: This is Instalco
This is Instalco A leading northern European group within heating and plumbing, electricity, ventilation, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure – specialised local com
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 13,700 9,019 EBITA adj., million SEK EBITA adj. margin, % 900 6.6 Cash flow from operations, million SEK Service share of revenue YTD, % 970 36 3
Slide 4: Quarterly summary
Quarterly summary Key financials Q1 2025 Net sales • Market still challenging – but positive signs and organic growth SEK 3,293 million • Margin negatively impacted by several factors EBITA adj. • Continuous ongoing mitigation work • One acquisition, and phase one of SEK 187 million expansion to Ger
Slide 5: Net sales and order backlog (SEK million)
Net sales and order backlog (SEK million) • Net sales development of 0.3% to SEK 3,293 4,000 (3,283) million 3,500 0.5% 0.2% 3,283 3,293 • Organic development 0.2% (-8.1), while 3,000 -0.5% acquired growth contributed 0.5% 2,500 2,000 • Organic order backlog growth of 2.1% - though we remain selecti
Slide 6: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) • EBITA amounted to SEK 123 (231) 350 9% million 8% 300 • EBITA margin of 3.7% (7.0) – 7% adjusted for non-recurring costs 250 margin amounted to 5.7% 6% Non-recurring costs: 200 5% SEK 64 million impacted EBITA 150 4% • A result of the weak market, proje
Slide 7: Segment Sweden
Segment Sweden Key financials Q1 2025 Net sales • Net sales amounted to SEK 2,386 (2,248) million Organic growth 5.7% SEK 2,386 million Acquired growth of 0.4% EBITA adj. EBITA margin adj. • EBITA down to SEK 99 (177) million, corresponding to a margin of 4.1% (7.9) - adjusted for one-off costs of S
Slide 8: Segment Rest of Nordics
Segment Rest of Nordics Key financials Q1 2025 Net sales • Net sales amounted to SEK 907 (1,034) million SEK 907 million Organic development -11.6% EBITA EBITA margin 25 2.7 Acquired growth of 0.8% • EBITA amounted to SEK 25 (54) million, SEK million % corresponding to a margin of 2.7% (5.3) Order b
Slide 9: Cash generation (SEK million)
Cash generation (SEK million) • Very high cash conversion despite the lower earnings • Q1 record for cash flow from operations at SEK 223 (198), a result of continued focus on working capital SEKm Q1 2025 Q1 2024 500 100% EBITDA 223 321 400 Change in net working capital 150 42 75% 300 Cash flow from
Slide 10: Strategic targets
Strategic targets Growth Profitability ≥10% Average sales growth should be at least 10% per year over a business cycle. Growth will take place both organically and through acquisitions 8% Instalco aims to deliver an EBITA margin of 8.0% Cash conversion Capital structure (Net Debt/EBITDA) 100% Instal
Slide 11: Multidisciplinary in Örnsköldsvik
ACQUISITION Multidisciplinary in Örnsköldsvik • In March, Instalco acquired Alf Näslunds Eltjänst AB in Örnsköldsvik. Through the acquisition, Instalco becomes multidisciplinary in the region • Founded in 1995, around 30 employees and net sales of around SEK 55 million • All types of electrical inst
Slide 12: CEO’s theme: A typical Instalco project
CEO’s theme A typical Instalco project 12
Slide 13: Attractive segment and risk minimization
Attractive segment and risk minimization To minimize risk: • Mid-size projects Large projects (SEK >75m), e.g.: Key success factors: • Stadiums • Price (main-business) Large projects • Shopping malls • Financial strength • Infrastructure • Organisation • Partnering • Few larger fixed price projects
Slide 14: Backlog examples
Backlog examples Company A Company B Project Order value, SEK Project Order value, SEK Fire station 32,860,000 Residential new build 18,049,080 Factory 250,303 Collab other Instalco company 1,814,200 Process industry 2,716,000 Tenant adjustment 462,000 Fire protection 943,619 Residential 7,146,704 R
Slide 15: Balanced sales mix minimises risk exposure
Balanced sales mix minimises risk exposure SALES BY CONTRACT TYPE FY 2024 SALES BY PROJECT TYPE FY 2024 Fixed-price projects 44% Renovation 32% Partnering projects 30% New production 33% Service 35% Other types of contracts 26% Over 80% of project revenue comes from assignments valued between 1-75 M
Slide 16: Diversified end-markets drive resilience
Diversified end-markets drive resilience SALES BY END MARKET FY 2024 SALES BY CUSTOMER GROUPS FY 2024 Industrial properties 24% Construction companies 44% Schools & hospitals 16% Industrial companies 25% Commercial properties 14% Property companies 7% Residential new construction 8% Offices 12% Publ
Slide 17: Typical projects
Typical projects Case Case Renovation of surgery room New build apartment buildning Company: Installationsservice AB Company: Stockholm Rörtentreprenad AB Discipline: Ventilation Discipline: Heating & plumbing Location: Eskilstuna Location: Stockholm Project size: SEK 1.1m Project size: SEK 3.4m 17
Slide 18: Summary
Summary • Market remains challenging but shows tentatively positive signs • In addition to weak market conditions, margins are impacted by temporary overcapacity and one-off writedown • Stable financial position enables selective, strategic acquisitions • Phase one of German expansion completed • We
Slide 19: Q&A
Q&A Full power installations from a powerful team