Alfa Laval Corporate AB (ALFA) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and welcome to Alfa Laval's first quarter earnings call. Fredrik and I will give you an update on the quarter and then open for questions. As always in the first quarter earnings call, we have to move on to our AGM direct following, so we will stick to the timetable today so that also the visiting shareholders have a chance to meet us. With that, let me then go to a couple of introductory comments first. So, demand was stable in the quarter and in line with expectations across all divisions, supported by a strong quarter for transactional business and service. The execution of the order book continued well and supported a solid invoicing quarter and a positive margin development. And last, the balance sheet is seldom in focus, but today we should recognize that we are essentially debt-free, and the 24 percent rose is a healthy number indeed, if I may say so. And with that, let us go to key figures. So, let me first clarify the order intake numbers for the quarter. Due to big currency movements in the order book of 52 billion SEC was affected to an unusual degree, and the revaluation in the quarter of the order book amounted to 900 million SEC. We have always reported order intake net of revals and cancellations. Looking at the last 40 quarters, this way of recognizing orders has reflected the underlying market conditions fairly. In Q1, the NOC versus dollar movement affected the Marine Division specifically and therefore included the reval of the order book into the bridge now and going forward. In all, orders were stable at minus 3 percent organically, both sequentially and compared to last year. The order book stands at 52 billion SEC, and the margin in the order book is not affected by REVAL. Moving to the invoicing, it increased with 10 percent, an...