Earnings release
Page 1
This is not an interim report in accordance with IAS 34. The company complies with the semi -annual reports required by the Securities Markets Act and normally publishes summaries for the first three and nine months of the year, which present highlights on the company’s business development during the quarter and before the date of this report. To get a comprehensive overview of the company’s businesses one should review additional document s such as the latest annual and semi-annual reports. These documents are available at www.eaglefiltersgroup.com. The figures presented in this Q1 Summary are unaudited. The figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Q1 Summary JANUARY – MARCH 2025
Page 2
1 EAGLE FILTERS GROUP OYJ Q1 2025 SUMMARY HIGHLIGHTS OF THE REVIEW PERIOD JANUARY – MARCH 2025 ● Order intake increased by 137 % and amounted to EUR 1.0 (0.4) million. ● Order backlog amounted to EUR 1.6 (2.0) million at the end of the period. ● Revenue decreased by 66 % and amounted to EUR 0.7 (2.2) million mainly due to the timing of revenue recognition. As manufacturing output levels remained stable during the quarter, the finished goods inventory has increased substantially. ● EBITDA was EUR -0.9 (-0.2) million. ● The operating result was EUR -1.2 (-0.5) million. ● During Q1 Eagle Filters agreed on a EUR 1.0 million long term loan with Finnvera. ● After the review period Eagle Filters is waiting for confirmation for an over EUR 2.0 million order from an existing customer. A large part of this highly potential order can be fulfilled with current readymade inventory. ● Development and sales efforts for the Advanced Materials business area have continued. ● Automation projects have commenced with the target to significantly increase production output. ● Eagle Filters Group plans to raise additional funding to support its working capital, investment needs, and liquidity. Eagle Filters Group´s description of risks and uncertainties is included later in the report. KEY FIGURES EUR '000 1–3 / 2025 1–3 / 2024 1–12 / 2024 Order intake 1 049 442 4 961 Order backlog 1 594 2 027 1 212 Revenue 734 2 177 7 593 EBITDA -934 -181 -2 129 EBITDA-% Neg. Neg. Neg. Operating result -1 205 -458 -3 212 Operating result-% Neg. Neg. Neg. Result for the financial period -1 411 -618 -3 896 Earnings per share (EUR) -0.01 -0.00 -0.02 Head count at the end of the review period 56 67 66 FINANCIAL TARGETS AND OUTLOOK Eagle Filters Group has set long-term targets for its 100% owned subsidiary Eagle Filters Oy. Eagle Filters Oy targets an average annual revenue growth of more than 30% and an EBITDA margin exceeding 20% in the long term. The company’s management estimates that the special circumstances caused by Russia’s war on Ukraine and unrest in the Middle East have caused disturbance in the company’s operating environment. These events, however, are not expected to have an impact on Eagle Filters Group´s long-term targets. Eagle Filters Group does not publish a short-term outlook. Eagle Filters Group Q1 Summary 1 January – 31 March 2025 STRONG ORDER INTAKE GROWTH OF 137%. REVENUE & PROFITABILITY IMPACTED BY TIMING OF REVENUE RECOGNITION
Page 3
2 EAGLE FILTERS GROUP OYJ Q1 2025 SUMMARY FINANCIAL REVIEW JANUARY – MARCH 2025 Orders received in the review period increased by 137 % from the comparison period and amounted to EUR 1 049 (442) thousand. Growth was driven by the Clean Energy business area. The order book at the end of the period was EUR 1 594 (2 027) thousand, staying at a healthy level. Revenue decreased by 66 % from the comparison period and amounted to EUR 734 (2 177) thousand. The decrease in revenue is mainly related to delays in deliveries, postponing revenue recognition. As manufacturing output levels remained stable during the quarter, the finished goods inventory has increased substantially. EBITDA amounted to EUR -934 (-181) thousand. As fixed costs (personnel- and other operating costs) decreased by 3 % compared to the comparison period, the negative EBITDA is mainly due to low revenue recognition. The company´s cost structure supports significantly higher volumes. The operating result for the period amounted to EUR -1 205 (-458) thousand, impacted by the planned depreciations and amortization of EUR -271 (-277) thousand, of which amortization of goodwill was EUR -209 (-211) thousand. Net financial items increased to EUR -205 (-161) thousand. The result for Q1 2025 was EUR -1 411 (-618) thousand and earnings per share were EUR -0.01 (-0.00). During the review period Eagle Filters agreed on debt financing with Finnvera Oyj to enhance Eagle Filters’ international growth and to support working capital needs. The long-term debt financing agreement between Eagle Filters and Finnvera consists of EUR 1.0 million long-term debt financing agreement, with a maturity of three years. The interest rate is Euribor 6 months + 3.2 % interest margin. The financing agreement includes other terms customary for financing agreements. CO2 REDUCTION IMPACT IN 2024 For 2024 the estimated overall CO2 reduction impact for Eagle Filters Oy was approximately 110 000 tons CO2 (103 000 tons CO2 in 2023). This is the estimated amount of CO2 that was not emitted but would have been emitted into the atmosphere without deploying Eagle Filter’s technology. Eagle Filter’s high efficiency air filtration technology significantly increases the fuel efficiency up to appx 5 % and on average appx 2 % of gas turbines by keeping the compressor blades clean and avoiding friction caused by fouling. This translates into a large opportunity for global CO2 emission reduction, since over 20 % of world electricity is produced with gas turbines. Natural gas alongside coal and petroleum are the primary sources of CO2 and causes of global warming. Eagle is alleviating the problem at its root and cutting emissions at the world’s largest point emitters of CO2. We provide an estimate of the handprint of Eagle Filter’s products, i.e. the CO2 savings achieved by customers by using Eagle Filter’s products each year. Eagle Filter’s own emissions from production, subcontracting and travel are not included in the estimate. The company’s environmental footprint, however, is estimated to be very small compared to the handprint. EVENTS AFTER THE REVIEW PERIOD After the review period Eagle Filters is waiting for confirmation for an over EUR 2.0 million order from an existing customer. A large part of this highly potential order can be fulfilled with current readymade inventory. To execute Eagle Filters growth-strategy, management is actively evaluating ways for more effective use of capital. Due to postponed deliveries and increased levels of finished goods inventory in Q1, working capital requirements have risen, and the need to secure additional funding remains. Eagle Filters Group plans to raise the necessary funding to support its working capital, investment needs, and liquidity. The Annual General Meeting of Eagle Filters Group was held on 15 April 2025 in Helsinki. The resolutions of the AGM have been published on 15 April 2025 and are available on the company’s website at www.eaglefiltersgroup.com FINANCIAL REPORTING Eagle Filters Group will publish the following financial reports in 2025: - 14. August 2025 Half-Year Review - 13. November 2025 Q3 Summary Eagle Filters Group´s financial reports are available on the company´s website at www.eaglefiltersgroup.com
Page 4
3 EAGLE FILTERS GROUP OYJ Q1 2025 SUMMARY RISKS AND UNCERTAINTIES Eagle Filters Group is associated with a number of risks and uncertainties, including but not limited to the following, that can affect the level of sales and profits as well as operations or financing. Russia's war against Ukraine as well as the unrest in the Middle East and the subsequent global geopolitical instability combined with high inflation, supply chain challenges, and European energy market problems have caused various supply and demand-related risks as well as increased uncertainty and financial instability. Especially the global disruption in the availability of raw materials/components and their price development can cause fast changes in the company's operating environment. The company monitors the development of the situation and actively strives to ensure the availability of materials/components required for product deliveries but challenges in raw material/component availability, or price increases, can have a detrimental effect on the company’s production and deliveries as well as on profitability of the company. Strategic risks refer to uncertainty that is primarily, but not entirely limited, related to changes in the operating environment and the ability to utilize or anticipate these changes. These changes may relate, for example, to the general economic situati on, customer consumption behavior, competition, politics and legislation/regulatory or technological developments. When assessing strategic risks and opportunities, the goal is to find the business opportunities that are available to achieve the set goals with manageable risks, while avoiding those that present unreasonably high risks. Operational risks refer to circumstances or events that can prevent or hinder the achievement of objectives or cause harm to people, property, business, information, or the environment. Operational risks include risks related to, but not limited to manufacturing, management & personnel, suppliers & subcontractors, products, contracts, commodities, litigation, authoritative or administrative proceedings and financial sanctions. Financial risks are those related to Eagle Filters Group´s financial position. These include, but are not limited to e.g., availability and cost of finance, inflation, NWC and liquidity, credit losses and foreign exchange rate fluctuations. Non-economic impacts are also considered when assessing risks. Reputation risk arises if Eagle Filter Group´s operations conflict with the expectations of various stakeholders, such as customers, suppliers, regulators, shareholders, financiers, or other societal stakeholders. Responsible practices are key to preventing reputational risks. Reputation risks are also managed through timely and adequate communication. ACCOUNTS PRINCIPLES, ESTIMATES AND MANAGEMENT JUDGMENT MADE IN PREPARATION OF THE ANNUAL- AND SEMI-ANNUAL- AND QUARTERLY ACCOUNTS Annual-, semi -annual- and quarterly accounts have been prepared following generally accepted accounting principles and applicable laws. The figures in this Q1 Summary are not audited. The figures have been rounded, and consequently, the sum of individual figures may deviate from the presented sum figure. The preparation of annual-, semi-annual- and quarterly accounts release information requires management to make accounting estimates and judgements as well as assumptions that affect the application of the preparation principles and the accounting estimates on assets, liabilities, income and expenses. Actual results may differ from previously made estimates and judgments.
Page 5
About Eagle Filters Group Oyj Eagle Filters Group is a material science company that aims to enable a green and healthy environment. Eagle provides high performance filtration solutions that cut CO2 emissions and increase profitability of the energy industry. Eagle’s technology improves performance and energy efficiency while cutting costs. The technology is being used by some of the world’s largest energy utilities. The company group is listed on First North Growth Market Finland under the ticker EAGLE. The Company’s Certified Adviser is DNB Carnegie Investment Bank AB.