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Introduction & Market Context
CTEK AB (CTEK), the Swedish battery charging and electric vehicle (EV) charging solutions provider, presented its Q1 2025 financial results on May 6, 2025, highlighting continued organic growth for the fifth consecutive quarter. The company, which supplies client-branded chargers to over 50 prestigious vehicle manufacturers worldwide, reported net sales of 213 million SEK, representing a 5% organic increase compared to the same period last year.
CTEK’s business spans two main technology areas: Low Voltage battery management systems and Electric Vehicle Supply Equipment (EVSE), with products sold across consumer and professional channels in over 70 countries. The company emphasized its Swedish heritage, noting that all products are designed, developed, and tested in Sweden, with approximately one-third of employees working in research and development.
As shown in the following comprehensive overview of CTEK’s product lines and market segments:
Quarterly Performance Highlights
CTEK reported solid financial results for Q1 2025, with net sales reaching 213 million SEK and gross margin improving by 2.4 percentage points to 56.4%. However, adjusted EBITA margin decreased slightly by 0.6 percentage points to 9.1%. The company’s cash flow from operating activities was 8 million SEK, significantly lower than the 45 million SEK reported in the same period last year.
The following slide provides a clear overview of CTEK’s key financial metrics for the quarter:
The company highlighted several positive developments during the quarter, including continued growth in the Consumer Division, the first profitable quarter for the Professional Division, and positive reception of the new Chargestorm Connected 3 product. CTEK also noted its stable financial position as it prepares to enter Phase 3 of its strategic plan.
This summary slide captures the key takeaways from the quarter, including performance trends:
Detailed Financial Analysis
Consumer Division Performance
The Consumer Division, which represents 66% of CTEK’s total sales, continued to show strong momentum with 7% organic growth, reaching 141 million SEK in Q1 2025. Adjusted EBITDA for this segment increased to 49 million SEK (from 47 million SEK), though the margin decreased slightly to 34.8% (from 35.9%).
The company attributed the division’s growth to three main factors: expansion in North America, increased online sales, and growing sales of workshop chargers. Low Voltage products dominate this division, representing 99% of Consumer Division sales.
The following breakdown illustrates the Consumer Division’s performance:
Professional Division Performance
In a significant milestone, CTEK’s Professional Division achieved its first quarter with positive margins. The division, which accounts for 34% of total company sales, reported 3% organic growth to 72 million SEK. More importantly, adjusted EBITDA improved dramatically to 4 million SEK (from -3 million SEK), resulting in a positive margin of 6.0% compared to -4.6% in the same period last year.
Unlike the Consumer Division, the Professional segment has a more balanced product mix, with EVSE products representing 36% of division sales and Low Voltage accounting for 64%.
The following chart details the Professional Division’s improving performance:
Strategic Initiatives
CTEK outlined its three-phase strategic plan aimed at returning to sustainable growth and profitability. Having successfully navigated Phase 1 ("Stability") by adjusting its cost base, the company is currently in Phase 2 ("Profitability"), focusing on organic profitable growth through geographical and channel expansion.
The company indicated it is preparing to enter Phase 3 ("Profitable Growth"), which will involve accelerated geographical and product portfolio expansion, as well as potential M&A activities. CTEK plans to provide more details about Phase 3 initiatives during its upcoming Capital Market Day on May 22, 2025, in Stockholm.
The following roadmap illustrates CTEK’s strategic progression:
Forward-Looking Statements
CTEK expressed confidence in its market position and future prospects, highlighting several positive indicators including four consecutive quarters of growth, strong momentum in the Consumer Division, and the Professional Division’s return to profitability.
The company’s go-to-market strategy continues to focus on two distinct customer segments: Professional (automotive companies, charging point operators, parking owners) and Consumer (retailers, online platforms, distributors, workshops). This dual approach allows CTEK to leverage its expertise across both traditional battery management and emerging EV charging markets.
The following slide details CTEK’s go-to-market strategy across different customer segments:
Looking ahead, CTEK emphasized its stable financial position with a net debt ratio of 1.9x (improved from 2.2x), which it believes positions the company well for the next phase of growth. Management has scheduled a Capital Markets Day for May 22, 2025, in Stockholm, where it plans to present more details about its Phase 3 strategic initiatives.
The company summarized its Q1 2025 performance and outlook with the following key points:
CTEK shares closed at 12.70 SEK on May 5, 2025, up 1.93% for the day, and have traded between 11.22 SEK and 23.40 SEK over the past 52 weeks.
Full presentation:
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