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Introduction & Market Context
Nimbus Group AB (BOAT) presented its Q1 2025 results on April 29, revealing a challenging quarter for the Swedish boat manufacturer. The company, founded in 1968, continues to navigate a difficult market environment characterized by weakening demand and tariff uncertainties, particularly affecting its commercial segment. Against this backdrop, CEO Jan-Erik Lindström announced his decision to retire during 2025, adding a leadership transition to the company’s list of challenges.
The boat manufacturer’s stock closed at 15.65 SEK on April 28, significantly below its 52-week high of 27 SEK, reflecting investor concerns about the company’s performance.
Quarterly Performance Highlights
Nimbus Group reported Q1 2025 sales of 300 million SEK, representing a 13% decrease compared to 344 million SEK in the same period last year. EBITA came in at -13 million SEK, a slight improvement from -14 million SEK in Q1 2024. Order intake also declined to 334 million SEK from 360 million SEK year-over-year.
As shown in the following chart detailing the company’s business update, Nimbus is experiencing market weakening affecting Commercial Sales, while seeing positive development in Retail Sales:
The company’s performance shows a clear divergence between its commercial and retail segments. Commercial sales dropped by 17% (-51 million SEK), primarily driven by weakness in markets outside Europe and North America. Meanwhile, the retail segment showed encouraging growth.
The following chart illustrates the development of commercial sales across different regions, highlighting stronger order intake in Europe but softening demand in North America:
In contrast to the commercial segment, retail sales showed positive momentum with a 15% increase driven by the company’s own brands. This segment continues to see rising order intake since Q2 2024, with the orderbook reaching its highest level since Q1 2023.
The retail sales development across different product categories is detailed in the following chart:
Detailed Financial Analysis
Nimbus Group’s profit and loss development reveals continued cost underabsorption effects and challenges in reducing finished goods inventory. The company did see improvement in its EdgeWater business, which showed a 16 million SEK year-over-year EBITA improvement. Operating expenses were reduced to 50 million SEK from 56 million SEK previously.
The following chart illustrates the company’s sales and EBITA development over time, showing the recent profitability challenges:
Cash flow and working capital remain areas of concern. Q1 typically represents the peak in net working capital due to seasonal effects, but operating cash flow in Q1 2025 was particularly weak at -127 million SEK, driven by higher levels of receivables. The sales drop, attributed partly to tariff uncertainties, has pushed inventory release forward.
The following chart details the company’s cash flow and working capital situation:
Strategic Initiatives
Despite the challenging quarter, Nimbus Group highlighted several strategic initiatives aimed at improving performance. The company successfully completed a rights issue of 345 million SEK, providing additional financial flexibility. Management is taking actions to sell value brand equipment and is establishing new marketplaces, including a new retail sales establishment in Stockholm.
The company continues to build on its international expansion strategy, following its North American establishment in June 2022 and the acquisition of EdgeWater Power Boats in May 2023. Recent milestones include the production of the first US-produced Nimbus boat in Q2 2024, the launch of Nimbus 495 at Cannes in September 2024, and Alukin entering the governmental segment in October 2024.
Forward-Looking Statements
Nimbus Group maintains its long-term financial targets despite current headwinds, aiming for growth exceeding 10%, an EBITA margin of 10%, no financial debt, and a dividend policy of 30%. However, the company acknowledges that current sales are not leveraging investments, and ongoing measures to adapt production are being implemented.
The upcoming leadership transition with CEO Jan-Erik Lindström’s planned retirement during 2025 adds another layer of uncertainty to the company’s near-term outlook. Investors will likely be watching closely for updates on the succession plan and any potential shifts in strategy under new leadership.
Nimbus Group will hold its Annual General Meeting on May 16, with the Q2 2025 report scheduled for release on July 17.
Full presentation:
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