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Investing.com -- AFRY, a global engineering and design company, reported weaker-than-expected net sales and adjusted EBITA for the first quarter of 2025, leading to a 12% drop in its share price.
The company’s net sales were SEK 6,749m, a decrease of 2.1% year-over-year and a 0.9% organic decrease when adjusted for calendar effects. This was 3% below the Infront consensus. The company’s adjusted EBITA was SEK 490m, a 17% year-over-year drop, which was 18% below the consensus, resulting in a margin of 7.3%. In the first quarter of 2024, the margin was 8.6%.
The market demand for AFRY’s services remains uneven. Strong demand for energy and transport infrastructure solutions was completely counterbalanced by weaker demand in the pulp and paper, real estate, and certain parts of the industrial portfolio. In response to these market conditions, the company is focusing on implementing measures to manage the situation, while also seeking to expand in segments where demand is robust.
The company’s capacity utilization was 71.1%, down from 72.6% in the first quarter of 2024. This decrease was due to a slow start to the year and higher costs related to capacity adjustments made to meet weaker demand in certain areas. These factors contributed to the lower-than-expected EBITA.
In addition to its financial results, AFRY also announced a new, simplified group structure. The company will now be divided into three global divisions: Energy, Industry, and Transportation & Places. This restructuring is part of AFRY’s ongoing efforts to adapt to market conditions and optimize its operations.
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