• Sales SEK 53m and EBIT SEK -5m (vs. ABGSCe 49m & -4m)
• Changed reporting period, now follows calendar year
• Sales driven by OEM business and Aira

Q4 results

In conjunction with its report, Energy Save has changed its reporting period to follow the calendar year from the previous split fiscal year. The company reported its Q4 (Oct-December), instead of fiscal Q3'24/25 (Nov-Jan). We have therefore created a blend from the fiscal Q2 and Q3 to be able to compare to the Q4 calendar year.

Energy Save reported Q4 sales of SEK 53m (vs. ABGSCe 49m), +25% y-o-y and up 4% vs. calendar Q3'24, driven to a large extent by Energy Save's OEM business and Aira collaboration. Commercial (SEK 4m) and sales in Scandinavia (SEK 5m) continued to be weak, indicating that sales under the ES brand remains subdued. The gross margin was strong at 44% (vs. ABGSCe 33%) and EBIT came in at SEK -5m (vs. ABGSCe -4m), for a margin of -9% (ABGSCe -9%). Moreover, ES had a positive working capital release of SEK 15m and FCF strengthened to SEK 4.7m (vs. -15m LY). The cash balance came in at SEK 54m (vs. 8m LY).

Estimate changes and outlook

The change in the reporting period is likely to distort comparisons with current consensus expectations. However, we do not expect any major changes to estimates as the numbers were fairly in line with expectations. Management writes that the company sees a cautious market in the near-term that is expected to pick up during the autumn-winter of 2025. Furthermore, management writes that the end-market recovery in the residential market remains subdued, and we should therefore expect a continued period of weak sales, as communicated in recent reports. However, deliveries to Aira continue to grow, and could help offset the overall low market activity.

Valuation

Prior to today's report, the share was down 30% L3M and is on our pre-report estimates trading at 0.6x EV/Sales '24/'25e and 9x-3x EBIT '25/'26e-'26/'27e. It was positive to see that Energy Save's sales continued to gr