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Introduction & Market Context
Qben Infra AB reported its first quarter 2025 results on May 23, 2025, revealing a mixed performance across its business segments while highlighting significant growth in its order book. The infrastructure company’s stock (QBEN) fell 7.39% to 11.50 following the presentation, reflecting investor concerns despite some positive developments.
The quarter was characterized by strategic restructuring initiatives, cost focus, and liquidity management as the company worked to improve profitability across its diverse business segments spanning rail, power, construction, and inspection services.
Quarterly Performance Highlights
Qben reported last twelve months (LTM) turnover of MSEK 2,830 with an adjusted EBITA margin of 5%, representing 7% organic growth in turnover and 14% growth in adjusted EBITA compared to Q4 2024. The company’s performance varied significantly across its business segments.
As shown in the following quarterly summary chart, Qben demonstrated consistent revenue growth while maintaining its focus on profitability:
The Rail segment emerged as a standout performer with strong organic growth and good profitability. Quarterly revenue reached MSEK 211.3, representing a 60% increase from Q1 2024, while adjusted EBITA improved dramatically from negative MSEK 8.6 in Q1 2024 to positive MSEK 8.6 in Q1 2025.
The following chart illustrates the Rail segment’s impressive performance:
Qben Power also showed improvement with a 22% year-over-year revenue increase to MSEK 171.0 in Q1 2025. Despite being in what the company described as a "low season," the segment achieved a positive adjusted EBITA of MSEK 1.6, a significant improvement from the negative MSEK 19.8 in the same period last year.
However, the Construction segment faced challenges, reporting a weak quarter despite 38% revenue growth. Adjusted EBITA fell to negative MSEK 18.7 compared to positive MSEK 8.7 in Q1 2024. Management indicated that cost reduction measures and restructuring efforts were underway to address these issues.
The Inspection segment showed the strongest relative growth with a 135% revenue increase, though it remained unprofitable with a negative EBITA margin of 10.4%, albeit improved from the negative 55.9% in Q1 2024.
Order Book & Future Outlook
The most promising aspect of Qben’s Q1 results was the substantial growth in its order book, which increased by 49% from December 31, 2024, to reach MSEK 2,379 by the end of March 2025. This growth was supported by strong order intake of MSEK 1,340 during the quarter and a book-to-bill ratio of approximately 2.39.
The following chart demonstrates this impressive order book expansion:
This growing volume of orders relative to billing strengthens the outlook for future revenue growth, providing a foundation for potential improvement in the coming quarters despite current challenges in some segments.
Strategic Initiatives
Qben highlighted several strategic initiatives during the quarter, including organizational changes, the acquisitions of Nordnes Narvik and Trase, and various operational improvements. The company also announced leadership changes, with Fredrik Arpe appointed as the new interim CEO.
In a significant development after the quarter’s end, Qben announced on May 13, 2025, a letter of intent regarding the possible divestment of its Rail platform, with an estimated enterprise value of MSEK 800-850. This potential transaction could substantially alter the company’s business mix and financial position.
Financial Position
The company reported a total net debt of MSEK 856 as of Q1 2025, including debt related to real estate. Excluding real estate-related debt, the net debt stood at MSEK 659.5, resulting in a debt ratio of 4.11x compared to the loan agreement requirement of 4.25x.
The following chart breaks down Qben’s debt structure:
Forward Guidance
Looking ahead, Qben maintained its goal of achieving SEK 3.1 billion in turnover with a 10% adjusted EBITDA margin, as illustrated in the following chart:
Management expressed confidence that the strengthened order book and ongoing efficiency initiatives provide a foundation for future sales growth and improved profitability. The company also highlighted several contracts won after the quarter’s end, including multiple rail and power projects, which should further support the order book in Q2 2025.
In summary, while Qben faces challenges in certain segments, particularly Construction, the strong order book growth and strategic initiatives position the company for potential improvement in the coming quarters, provided management can successfully execute its restructuring and efficiency plans.
Full presentation:
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