Equity Research, Enrad Q1 2025: Strong growth in line with expectations

Today, Friday, April 25, Enrad AB (“Enrad” or “the Company”) published its Q1 2025 report. Below are our initial impressions of the report’s outcome, including deviations from our estimates.

• Net sales of approximately SEK 16.2 million in Q1 2025 slightly exceeded our estimate of SEK 16.0 million. Compared to Q1 2024, net sales grew by a strong 112%, which, according to the report, was higher than the Company’s expectations.
• The gross profit of SEK 8.1 million in Q1 was approximately 3% lower than our estimate of SEK 8.3 million. A gross profit of SEK 8.1 million corresponds to a gross margin of 50%.
• EBITDA amounted to SEK 1.7 million in Q1 2025, compared to our estimate of SEK 2.0 million.
• As of March 31, 2025, the Company’s cash position amounted to approximately SEK 37.3 million, as a result of a rights issue during Q1 that generated net proceeds of approximately SEK 25.3 million.

According to CEO Andreas Bäckäng, the strong growth has led to a few deliveries needing to be postponed to the second quarter. The Company has hired the resources expected to be necessary to meet the increased demand. Enrad has also recently expanded into the Netherlands and established the subsidiary Enrad B.V., which will conduct direct sales in the Dutch market.

We intend to publish an updated report of Enrad shortly.

Read our latest research report on Enrad here

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