Hexatronic Group AB (publ) (HTRO) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to this presentation of our first quarter earnings. I am My name is Richard Fröberg. I'm CEO of Hexatronic Group and with me today are CFO Pernilla Lindén and Deputy CEO Martin Åberg. As usual, we will start with a very brief overview of the Hexatronic Group. And today we are a global business with operations in over 40 countries and sales in over 100 countries. We have about 2000 employees and revenue last year was just over seven and a half billion SEK with an EBITDA margin of 10.6%. As you can see, we're quite well diversified with three different business areas, fiber solutions being the biggest accounting for about two thirds of our revenue, harsh environment and data center are smaller, but growing in importance. Just over half our turnover is from Europe. North America accounts for close to 40% and APAC sales are just over 10% of total. We have 18 production facilities covering the markets well with production in each of the continents where we're active. And it has been for quite a while actually an important strategy for us to have local production set up to be close to our customers. And obviously this is extra important and a strength in today's world where trade barriers are only increasing. So let's get to the main event and take a look at the Q1 highlights. We're quite pleased to present today a solid quarter with growth on top line and a beta level, driven by very strong performance in our data center business. Starting with sales, we landed at 1882 million sec, which is 6% higher than last year, and also slightly higher sequentially, which is in line with the seasonality we were expecting. And in fact, this was the first quarter since Q3 2023, where we saw a modest organic growth. EBITDA improved 10% year on year due to operat...