C-Rad AB (FRA:24C) Q1 2025 Earnings Call Highlights: Navigating Growth Amid Market Uncertainties

In This Article:

  • Order Intake: SEK97 million, a 5% growth compared to Q1 last year.

  • Revenue: Increased by 1% to SEK119 million.

  • EBIT Margin: 18% excluding unrealized currency effects.

  • Gross Profit: SEK78 million, up from SEK76.6 million a year ago.

  • Gross Margin: 66%, compared to 65% last year.

  • Operating Expenses: Decreased from SEK64 million last year to SEK56.1 million.

  • EBIT: SEK10 million, affected by unrealized exchange rate losses of SEK11 million.

  • Cash Balance: Increased by SEK10 million to SEK161 million at quarter end.

  • Operating Cash Flow: SEK26 million, with improved working capital contributing SEK16 million.

  • Revenue Growth in APAC: 41% to SEK50 million.

  • Revenue Decline in EMEA: Down 39% to SEK36 million.

  • Revenue Growth in Americas: 35% increase due to strong backlog conversion.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • C-Rad AB (FRA:24C) reported a solid order intake of SEK97 million, marking a 5% growth compared to Q1 last year.

  • The company achieved a revenue increase of 1% to SEK119 million, driven by strong deliveries in America and APAC.

  • Order intake for services grew by 58% compared to Q1 last year, highlighting the company's focus on growing recurring revenue.

  • C-Rad AB (FRA:24C) maintained a solid underlying EBIT margin of 18%, excluding unrealized currency effects, due to cost efficiency measures.

  • The company has a strong balance sheet with no long-term debt, and cash balances increased by SEK10 million during the quarter.

Negative Points

  • Order intake for the Americas decreased by 21% to SEK19 million in Q1, affected by market uncertainty and tariffs.

  • Revenue in EMEA was down 39% to SEK36 million, impacted by lower order intake from the previous year.

  • The EBIT for the first quarter was SEK10 million, down from SEK14.2 million a year ago, affected by unrealized exchange rate losses.

  • The overall US market is experiencing slowness in decision-making due to tariff-related uncertainties.

  • Despite the revenue growth, the gross margin was slightly offset by sales of lower-margin products.

Q & A Highlights

Q: Can you provide an overview of C-Rad AB's performance in Q1 2025? A: Cecilia de Leeuw, President and CEO, highlighted a solid quarter despite a "wait and see" market. The company achieved a 5% growth in order intake to SEK97 million, with significant contributions from EMEA and APAC regions. Revenue increased by 1% to SEK119 million, driven by strong deliveries in America and APAC. The EBIT margin, excluding unrealized currency effects, was 18%.