Netel Holding AB (NETEL) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to our presentation of our Q1 results. My name is Jeanette Reuterskjöld and I'm president and CEO of NETEL. With me today I have Fredrik Helenius, our CFO. We see a financial development in line with our own expectation, a normal seasonal variation for this first quarter. We show that we continue to deliver on our strategy to grow with new and existing customers and in new geographies. We increased our sales organically by 2.7% in the quarter and had sales of 694 million. We have an adjusted EBITDA of 20 million with a margin of 2.9% compared to 2.8% last year. Our growing order backlog reflects both on our position and the strong underlying markets. In the beginning of the year, we have strong tender season as many of our customers needs to start the product in spring time and before summer in order to be able to be done before winter. We continue to see many relevant requests from new and existing customers. Our main markets are in Sweden and Norway. which together account for approximately 93% of our sales. And our growth markets in the UK and Germany together account for 7% of our sales. Infraservices decreased sales in the quarter by 11.3%, but compares to an unusually strong first quarter last year. We continue to see strong price competition in our market segments as players who normally target the housing market are looking for new customers and business. This has led to lower margins, but our business is growing with both new and existing customers while expanding our geographical presence. We have already taken measures last year to optimize cost and resources and continue to develop the business for further profitable growth. In power, we grew 23.8% in the quarter as a result of our strong development in Norway, where we have gaine...