Nilfisk reports Q1 2025 results: Financial results in line with expectations

Core Viewpoint - The company reported a challenging Q1 2025 with a slight decline in revenue and organic growth, influenced by geopolitical uncertainties and tariff impacts, but maintains its financial guidance for 2025 [1][3]. Financial Highlights - Revenue for Q1 2025 was €256.5 million, down from €259.0 million in Q1 2024, reflecting a negative organic growth of 1.2% compared to 3.7% in the previous year [2]. - Gross margin improved to 43.2%, up from 41.8% in Q1 2024, supported by a favorable price and product mix [2][7]. - Overhead costs increased to €95.8 million, resulting in an overhead cost ratio of 37.3%, compared to 34.5% in Q1 2024 [2]. - EBITDA before special items decreased to €31.3 million, with an EBITDA margin of 12.2%, down from 13.2% [2][7]. - Free cash flow was negative at €19.8 million, compared to negative €7.4 million in Q1 2024 [2][8]. - Basic earnings per share (EPS) fell to €0.08 from €0.34 in the previous year [2]. Regional Performance - EMEA region showed strong organic growth of 7.9%, while APAC reported moderate growth of 2.9%. In contrast, the Americas experienced a significant decline of 17.7% due to a high backlog release and soft demand [4][6]. - The Professional Business was notably impacted by a revenue decrease in the US high-pressure washer segment [4][6]. Financial Outlook - The financial outlook for 2025 remains unchanged, with expected organic growth between 1% and 3% and an EBITDA margin before special items projected between 13% and 14% [3][5]. - The company plans to implement a targeted overhead cost reduction program starting in Q2 2025 to address recent cost trends [7]. Tariff and Supply Chain Management - The CEO highlighted that tariffs have complicated operations but the company’s flexible supply chain mitigates most of the tariff exposure, with remaining impacts to be offset through price adjustments [1][5].