Afry Ab (AFXXF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone and warm welcome to AFRI's presentation of the Q1 results for 2025. I am Linda Pålsson, I am the CEO of AFRI and I will present the quarter here today together with our CFO Bo Sandström. After the call we will as always open up for questions so make sure to join us in the call. Okay, to summarize then the first quarter, we had a rather modest start to the year with a slight decline in sales and the profitability that was pressured in some of our divisions. These results reflects the market we experience, but it also underlined the need for structural measures going forward. The slight decline in sales was mainly due to a weak market in parts of our division, industrial and digital solutions and process industries. This was partly offset by a strong growth in the energy division, where we continue to see good demand driven by the energy transition. The order backlog was solid and it increased by 4% sequentially adjusted for currency effect. And I am very glad to see that we continue to win important client projects and build backlog in our core segments. Profitability was pressured by a slow ramp up in the beginning of the quarter, as well as the challenging market we see in some of our segments. We also had a negative calendar effect of four hours in the quarter, which impacted the EBITDA by around minus 37 million. At the same time, the global business environment was impacted by increased uncertainty as a result of the global tariff situation. At AFRI, we see a limited direct impact from this. However, we are of course closely monitoring the situation and the potential effects it can have on our clients and their investment decision and activity going forward. In the quarter, we also continued our efforts to pave the way for profitable growth. And as...