engcon’s interim report Q1 2025

First quarter 2025

• Order intake increased 28 per cent to SEK 524 million (410); organic order growth was 28 per cent.
• Net sales increased 13 per cent to SEK 446 million (394); organic net sales growth was 14 per cent.
• Operating profit increased 40 per cent to SEK 84 million (60) and the operating margin was 18.8 per cent (15.2).
• Profit for the period increased 9 per cent to SEK 53 million (49).
• Basic and diluted earnings per share amounted to SEK 0.34 (0.32).

CEO Krister Blomgren comments:
“We began the year with a strong order intake mainly due to increased demand in the Nordic region ahead of the upcoming digging season. Order intake increased organically by 28 per cent and amounted to SEK 524 million (410). Net sales in the quarter amounted to SEK 446 million (394), an organic year-on-year increase of 14 per cent. The gross margin for the quarter amounted to 46 per cent (42) and was mainly attributable to higher volumes in production combined with a favourable product and market mix. Operating profit increased 40 per cent to SEK 84 million (60), corresponding to an EBIT of 19 per cent (15). Earnings were impacted by a negative currency effect due to the stronger SEK.

The Nordic region reports the strongest start to the year. The order intake amounted to SEK 231 million (156), corresponding to organic growth of 49 per cent. We are seeing increasing positivity in the market among end customers while the inventory levels of dealers are relatively low. The tiltrotator continues to gain ground in Europe and the order intake increased 20 per cent organically. We are seeing increased awareness of our products and their advantages, which was particularly evident at the world’s largest and most visited trade exhibition, Bauma in Munich, where tiltrotators were represented by all major excavator manufacturers.

The future market outlook contains a high degree of unpredictability related in part to tariffs and their impact on the global economy. Despite this, we anticipate continued positive net sales growth in the Nordic region ahead of the upcoming digging season and continued stable growth in Europe related to increased market penetration. We did, however, experience minor disruptions in the supply chain in the quarter that could result in a slight delay of deliveries in the forthcoming quarter.”

Q1 presentation today at 10.00 CEST
The report will be presented by Krister Blomgren, CEO and Marcus Asplund, CFO at 10.00 a.m. CEST today at a webcasted telephone conference accessible via this link:
https://engcon.events.inderes.com/q1-report-2025

To access the teleconference, and thereby be able to ask questions, please register via the link below. After registration, you will be provided phone numbers and a conference ID to log in.
https://conference.inderes.com/teleconference/?id=50051791

The presentation material and a recorded version of the conference will be available at www.engcongroup.com.

For more information, please contact:
Krister Blomgren, CEO
krister.blomgren@engcon.com
+46 70 529 92 65

Anne Vågström, Head of Investor Relations
anne.vagstrom@engcon.se
+46 76 126 40 84

engcon is the leading global supplier of tiltrotators and associated equipment that enhance efficiency, flexibility, profitability, safety and sustainability of excavators. With knowledge, commitment and a high level of service, engcon's about 400 employees create success for their customers. engcon was founded in 1990, headquartered in Strömsund, Sweden and address the market through 15 local sales companies and an established network of resellers around the world. Net sales amounted to approximately SEK 1.6 billion in 2024. engcon’s B share is listed on Nasdaq Stockholm.

For more information, visit www.engcongroup.com