Addtech AB (publ.) (ADDT_B) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to Adtech's first quarter report presentation. We start with Adtech in brief. If there are any newcomers on the call, a quick summary of the key fundamentals. We are a group of 150 independent and strictly decentralized companies in 20 countries with a clear business-to-business offering in five business areas. The value proposition is centered around high-tech products and solutions primarily to the manufacturing and infrastructure sectors. We have a dual growth ending approach, focused to develop and grow the business organically, together with our entrepreneurs, and then complement and strengthen our strategic niches with acquisitions funded by our own cash flow. Size-wise, we have a turnover of over 22 billion, run the operations with an EBITDA margin of 15%, and employ around 4,500 people throughout the organization. Highlights of Q1 then. In summary, a strong start of the year with continued growth and improved profitability. The overarching activity remained high and we increased our net sales by 7%, of which 1% was organic. We report an EBITDA growth of 11% with a high margin of 15.8 compared to 15.3 in the same quarter last year. Adjusted for revaluation of earnouts still at very good levels of 15.4. Our cash flow remains at satisfying levels and we acquired two companies during the quarter. Some more details on the sales. Solid growth for the group. And as you see in the graph, energy industrial solutions sticks out as key drivers, while challenges within automation remained. As I said, total net sales grew 7%. The strong SEC also generates negative currency effects of 4%. The overall activity remained at high levels, but with continued variation between segments, geographies and companies. However, our backlog remained well filled and we had a soli...