Sweco AB Reports Positive Q1 2025 Results Amid Strong Demand and Growth

On April 29, 2025, Sweco AB (NASDAQ: SWEC-B) announced its first-quarter financial results, demonstrating a solid start to the year. The report highlighted a stable growth trajectory and ongoing margin improvements across its operations. Notably, the company's net sales rose by 4% to reach SEK 8,066 million, up from SEK 7,720 million in the same quarter last year. This growth reflects a steady demand for Sweco's diverse services, particularly within the energy, water, infrastructure, security, and defense sectors.

Financial Performance

The financial metrics reveal robust underlying growth, with EBITA increasing significantly by 10% to SEK 900 million from SEK 793 million in 2024, translating to an EBITA margin of 11.2%, up from 10.3%. Furthermore, after making adjustments for calendar effects, the organic growth rate stood at an impressive 4%. The company also reported a profit of SEK 644 million, an increase from SEK 558 million, and earnings per share improved to SEK 1.79, indicating a favorable operational trend.

President and CEO Åsa Bergman described the performance as a "solid start to the year," underlining the effective cost control measures and higher billing ratios that facilitated this success. However, she mentioned that while overall demand remains consistent, the buildings and industry segments have shown some weakness. The healthy order inflow and backlog align well with ongoing sales growth, indicating a resilient operational environment.

Sectoral Insights

Such growth has been particularly driven by the ongoing green transition across Europe. This transition has escalated demand for Sweco's services, as evidenced by several significant business deals this quarter. Notably, the firm secured a SEK 580 million five-year contract to aid the expansion of Denmark's electricity grid as part of its climate agenda. Additionally, Sweco has engaged with metal producer Boliden to assist in replacing fossil fuel boilers with electric alternatives, underscoring the commitment to sustainable practices.

The company's ventures in transportation services also reflect robust demand fueled by investments in infrastructure and sustainable transport solutions. This includes participation in a high-speed rail project linking the Baltic States to Europe and acting as project managers for a major convention center expansion in Oslo, aiming to enhance the city's event prominence.

Looking Ahead

Sweco's growth strategy includes a strong focus on acquisitions, which are pivotal for the company’s future expansion. The recent acquisition of Finland's Sipti Consulting, employing approximately 50 experts, will significantly bolster their capabilities in geotechnical and environmental services.

As Sweco navigates the landscape amid global political challenges, the firm remains optimistic about the underlying trends that support its business model. The diversified nature of its operations positions it well to leverage emerging opportunities while tackling any potential challenges.

Conclusion

With promising results from the first quarter of 2025, Sweco seems well-equipped to continue capitalizing on European investments towards a greener, safer, and more innovative future. The leadership's commitment to efficiency improvements along with a customer-focused approach remains crucial as the company forges ahead in the dynamic infrastructure sector.

For more insights and updates, join the upcoming web cast and telephone conference for a detailed discussion regarding the first-quarter results, featuring CEO Åsa Bergman and CFO Olof Stålnacke.

Contact Information:
Anna E Olsson, Head of Press, Sweco Group
+4670 557 33 26
Email Anna E Olsson