High acquisition pace and commercial tenacity describe the first quarter of 2025.
 
Stable commercial development 
During Q1 2025, our market has been characterized by overall caution. We are seeing that global uncertainty is causing customers to defer costs and alter their purchasing patterns. We expect this to create a lagging effect, with an accumulation of worn-out tires, which might be beneficial later during the year.
In a cautious market environment, we have delivered solid performance across all our countries. The group is growing organically (3% LFL Q1 ’25 vs. ’24), and we are gaining or maintaining market share in all regions. We are also maintaining profitability (adjusted EBITDA margin of 8.3% R12 LFL) during a period of high acquisition momentum, ongoing investment in group infrastructure, and structural transformation.
Our operations in Finland continue to perform very strongly, driven by high commercial activity and a level of service appreciated by both existing and new customers. We are expanding our presence organically and gradually strengthening our geographical coverage. During the quarter, we opened a new workshop at the Port of Helsinki and reopened our workshop in Espoo.
The Swedish market remains soft, but our business demonstrates resilience. We are maintaining sales levels while undergoing an intense phase of integration following a high acquisition rate (15 companies in 2024, 5 in 2025). Lower activity in the mining industry has a dampening effect on our total sales. We have also invested in expanding the commercial organisation and new workshop facilities, increasing OPEX in Q1, but expected to contribute to continued growth in the coming quarters.
In Poland, we continue to face a challenging market. The economic climate is uncertain and demand is declining as a result of the war in Ukraine, which has disrupted trade flows between Europe, Russia, and Ukraine. In this environment, however, the company is gaining market share and continues to sharpen its commercial offering. We have recently employed a new export director with a focus on Central Europe and the Baltics.

Continued high acquisition rate
During the quarter, we acquired 5 companies, which together constitute 9 workshops, 1 retreading facility, and a specialist provider of mobile wheel alignment services. The workshops further expand our service network along Sweden’s key transport corridors, and we welcome several skilled entrepreneurs to the group. With the retreading facility in Kristianstad, we broaden our product range of retreaded tires and strengthen our ability to extend the life of worn-out tires. Through the wheel alignment acquisition, we can now expand our on-site services for hauliers and logistics companies, offering a solution that reduces tire wear and fuel consumption.
 
Däckia – a strategically important transaction
After the quarter, we also announced our intention to acquire Däckia and enter a long-term commercial partnership with Pirelli. Däckia is an established Swedish tire chain with over 60 workshops and 39 independent partner workshops. Our commercial partnership means that Pirelli will become a long-term tire supplier to Däckia. The intended transaction is currently awaiting approval from the Swedish Competition Authority, and we hope to finalize the transaction during the summer of 2025.
 
Long-term financing for continued growth
As part of our long-term strategic financing work, CTS raised an additional SEK 400 million in bond financing during Q1. Similar to the bond issuance last autumn, the transaction was significantly oversubscribed.
 
Outlook – continued confidence in structural value
We move forward into 2025 with confidence, while remaining aware that market conditions remain uncertain. Our ambition is to maintain strong commercial momentum, continue integrating and developing acquired companies, and at the same time invest in people, infrastructure, and business development for the future.
We are proud of what we have achieved so far—and excited about what lies ahead.
 
David Boman
CEO

For further information, please contact:
David Boman, CEO, +46 70 508 84 99
Monica Ljung, CFO, +46 708 74 85 20
 
Forward-looking information
Some statements in this report are forward-looking and the actual
outcome may be significantly different. In addition to the factors
specifically highlighted, other factors may have a material impact on
the actual outcome. Such factors include, but are not limited to, the
general economic situation, changes in exchange rates and interest
rates, political developments, the impact of competing products and
their prices, disruptions in the supply of materials.

About CTS Group
CTS is a leading, brand-independent platform for tire services, primarily focused on commercial vehicles serving trucks, buses, and heavy equipment operators. We have more than 700 employees across Sweden, Finland, Norway, and Poland.
Our operations include 52 tire workshops and 5 retreading facilities.
 
More information about CTS Group is available www.ctsinvestors.com.