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· Revenues MEUR 190.0 (MEUR 212.1)
· EBIT MEUR 2.2 (MEUR 10.1)
· Net profit / loss MEUR -2.2 (MEUR -0.4)
· Free cash flow MEUR -10.5 (MEUR -14.9)
· Business wins (lifetime revenue) MEUR 136.6 (MEUR 450.0)
Kongsberg Automotive (KA) has published its results for Q1 2025 with revenues of
MEUR 190.0, down from MEUR 212.1 in the same period last year, reflecting a
decline of MEUR 22.1 (-10.4 %). The company also reported EBIT of MEUR 2.2 in Q1
2025 (EBIT margin 1.2%), compared to MEUR 10.1 (EBIT margin 4.8%) in Q1 2024.
Compared to Q4 2024, however, revenues improved from MEUR 185.2, and EBIT
increased from MEUR 1.1 (EBIT margin 0.6%).
Free cash flow for the quarter was negative at MEUR -10.5, improving from MEUR
-14.9 in Q1 2024. Return on capital employed rose to 3.3%, a significant
improvement from -3.9% in the prior year.
Tariffs and the risk of an escalating trade war continues to impose uncertainty
on our business. We continue to monitor the situation closely and are actively
working to mitigate the direct effects. Despite high uncertainty and subdued
demand, KA experienced a modest uptick in customer activity early in the year
compared to Q4 2024. Several key customers in Europe reported increasing order
books and production ramp-ups planned for the second half of 2025. However, the
ongoing uncertainty related to global customs tariffs is clouding the overall
market outlook. Future demand trends remain difficult to predict.
The company continues to execute on its cost-saving initiatives. The previously
announced overhead reduction program remains on track and is expected to be
fully implemented by Q3 2025, delivering an estimated annual saving of MEUR
10.0. Additional cost reduction initiatives will be launched in 2025 to improve
profitability.
In Q1 2025, KA secured new business wins worth MEUR 136.6 in lifetime revenues,
of which MEUR 42.6 (31.2%) represented incremental business. A strong pipeline
of business opportunities is expected to convert in the coming quarters.
KA maintains its guidance for 2025 of a positive development in EBIT margin
compared to 2024. This outlook is underpinned by continued cost optimization and
operational efficiency measures, as well as potential revenue upside in the
second half of the year. The visibility for the second half of the year is
however currently limited and increasingly uncertain. The outlook excludes
potential effects from increased geopolitical uncertainty with negative impact
on cost and demand.
Following the appointment of a new Board of Directors in December 2024, KA has
initiated several leadership changes. Trond Fiskum was appointed President & CEO
and took office on March 31, 2025, and Erik Magelssen was appointed as CFO to
take office on June 1, 2025. Both bring extensive experience from within KA and
are committed to delivering on the company’s transformation agenda.
KA’s key priorities moving forward include:
· Further cost base adjustments: In addition to existing programs, new cost
initiatives will be introduced in 2025 to further improve profitability. Details
will be communicated in due course.
· Improved cash flow: Strengthening cash flow through tighter CAPEX management
and targeted reductions in net working capital.
· Leadership and performance: Strengthening the leadership team with the right
capabilities and establishing a structure of accountability and performance.
· Innovation and profitable growth: Leveraging a competitive product portfolio
and robust pipeline of innovation projects to drive long-term value creation.
“KA acknowledges that its financial performance and share price are not
satisfactory,” says Trond Fiskum, President & CEO of KA. “As clearly stated by
the Board of Directors (Board) in its April 8, 2025 letter to shareholders,
restoring value creation for shareholders is our top priority. Meaningful
changes are required. We are committed to working with the Board to implement
the necessary changes to strengthen the management team, drive a performance
-oriented corporate culture, and deliver sustainable shareholder value.”
Earnings presentation - conference call
The company will hold an earnings conference call at 09:00 (CET) today, May 7,
2025. Conference call registration is available at the company’s webpage or the
following link:?Kongsberg Automotive Q1 2025 Earnings
Release (https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20250507_4). Th
e earnings release and presentation will be published on?www.newsweb.no?and
on KA’s website (https://www.kongsbergautomotive.com/). The recording of the
presentation will be made available on the company`s website shortly after the
presentation.
Investor relations and media contacts:
investor.relations@ka-group.com
Therese Sjöborg Skurdal - Director Group Marketing &?Communications
therese.skurdal@ka-group.com
+47 982 14?059
About Kongsberg Automotive ASA
Kongsberg Automotive provides cutting-edge technology to the global vehicle
industry. We drive the global transition to sustainable mobility by putting
engineering, sustainability, and innovation into practice. Our product portfolio
includes driver and motion control systems, fluid assemblies, and industrial
driver interface products. Find more information at:?www.kongsbergautomotive.com
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Therese S. Skurdal at Kongsberg Automotive ASA,
and the contact person(s) mentioned above on May 7, 2025, at 07:00 CET.
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