Strong orders received

Quarter 1, 2025

• Orders received amounted to SEK 1,501m (1,519), equivalent to a currency neutral decline of 1.8 percent compared with the same period last year.
• Net sales amounted to SEK 1,406m (1,397), equivalent to currency neutral growth of 0.0 percent compared with the same period last year.
• Adjusted EBITA was SEK 142.5m (174.0), giving an adjusted EBITA margin of 10.1 percent (12.5).
• Operating profit amounted to SEK 109.2m (146.6), corresponding to an operating margin of 7.8 percent (10.5).
• Net profit was SEK 59.2m (90.2).
• Earnings per share were SEK 1.69 (2.57).
• Cash flow from operating activities amounted to SEK 15.3m (95.1).

CEO's comments

"Good order growth in three of four divisions

In an environment of increasing market uncertainty, we are continuing to advance our positions. In the first quarter, we reported healthy orders received in three of four divisions, new investments in operational efficiency, a greater presence in structurally growing industries and a new, smaller but nonetheless strategically important acquisition.

Following a cautious start, activity picked up and I can summarise orders received for the first quarter by saying there is reason to be satisfied in the current increasingly uncertain market climate. Our customers are naturally affected by tariffs and geopolitics and, consequently, so is our own business but we will continue to leverage our position as a technology and market leader in a segment with major significance for a growing number of industries and communities across the world - industrial air filtration.

In the first quarter, orders received amounted to SEK 1,501m (1,519), a slight decrease. However, three of four divisions reported high currency neutral order growth and two divisions had record-strong orders received. A lower order backlog and low customer activity in early 2025 resulted in sales for the first quarter remaining at an unchanged currency neutral level of SEK 1,406m (1,397). The gross margin was 40.4 percent (39.1), while the adjusted EBITA margin was 10.1 percent (12.5). Bookings that distort comparability by more than SEK 20m impacted the result compared to the first quarter of 2024. The result in quarter one of 2024 included a one-off positive effect of SEK 11m from the liquidation of a subsidiary and the first quarter of 2025 was impacted negatively by acquisition expenses as well as a rapid strengthening of the Swedish krona against all currencies, and primarily the USD, especially in the last weeks of the quarter.

We continue to seek out new businesses that can complement and strengthen our range. Acquisitions require clear operational synergies and that we gain important technical expertise. Our acquisition of the Danish company Olicem at the end of 2024 enables us to roll out a complete package for emissions analysis and reporting, which is becoming increasingly important for our customers. We acquired Spanish Euro-Equip in March, thereby strengthening our position in the foundry market in the Spanish-speaking part of the world. We have already been working with this company for many years and know their expertise. Through acquisitions and organic expansion, we have built a presence in key industries and markets over the years. Particularly in the US, which is our largest single market. It feels reassuring to know that in the current uncertain trade climate, most of what we sell in the US, where sales amounted to nearly SEK 2 billion in 2024, is also manufactured domestically. However, we are prepared for the fact that the current situation may result in rising costs in the supply chain, and we have already noted a sharp increase in steel prices in the US. This probably means that we will also have to raise our prices, but there will be considerable variation both between and within the divisions.

What we can primarily influence is what we do ourselves, such as continuing to invest in more efficient production and logistics. During the quarter, we rolled out our warehouse robots in Thomasville in the US, and our production and warehouse management in Helsingborg is now fully operational in a new state-of-the-art facility. Moreover, there is a high level of activity at the new innovation centre in Helsingborg, along with its associated testing lab, and at our 14 innovation hubs around the world. I am now looking forward to rolling out an increasingly strong offering for clean air that, with its high technology content, further consolidates our role as The Clean Air Company.

HIGH LEVEL OF ACTIVITY IN OUR DIVISIONS

Extraction & Filtration Technology reported a record quarter in orders received, including a number of major orders driven by the US, and continued healthy growth for the service business. Process Technology started the new year with lower orders received and sales, but is gaining share in a challenging market. Duct & Filter Technology is leveraging its investments in production and logistics and once again reported higher figures for orders received, sales and profitability. Monitoring & Control Technology continued to strengthen its order backlog globally with a record quarter for orders received and increased efficiency in its project deliveries, resulting in improved profitability.

GROWING UNCERTAINTY

Although development in our divisions is largely positive, there is still a risk that customers may hold off on making larger investments in the current uncertain macro environment. Furthermore, there are growing concerns about geopolitical and trade policies that could lead to increased protectionism in the long term. Nederman stands strong, however, not least in terms of a healthy order backlog, investments in product development and the ability to expand its presence in structurally growing industries. In addition, the current situation gives us a greater opportunity to strengthen our market share. Despite uncertainty about developments in the coming quarters, we are convinced of continued favourable long-term prospects for our industry and for us as market leader.

Sven Kristensson, VD"

For further information, please contact:
Sven Kristensson, CEO
Telephone: +46 42 18 87 00
e-mail: sven.kristensson@nederman.com
 

Matthew Cusick, CFO
Telephone: +46 42 18 87 00
e-mail: matthew.cusick@nederman.com
 

This information is information that Nederman Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on April 25, 2025.

About Nederman
Nederman is an environmental technology company and a global leader in industrial air filtration dedicated to extracting, transporting and cleaning air to make industrial production more efficient, safe and sustainable. Based on industry leading products, solutions and services in combination with innovative IoT technology, we monitor and optimise performance and validate emissions compliance to protect people, planet and production.

The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2,500 employees and a presence in more than 50 countries. Learn more at nedermangroup.com

Nederman Holding AB (publ), P.O. Box 602, SE-251 06 Helsingborg, Sweden
Corporate registration number: 556576-4205