The earnings season in Croatia has officially kicked off, with Končar D&ST publishing its Q1 2025 results last Friday – serving as an early indicator ahead of the broader Končar Group release scheduled for tomorrow. Therefore, we are bringing you an overview of Končar D&ST’s Q1 2025 performance.
Sales revenue reached EUR 129.4m (+33.5 YoY), representing 99.7% of total operating revenue. Of this, export sales accounted for EUR 122.1m (+31.9% YoY), maintaining a high 94.4% share of total sales (-1.1 p.p. YoY). This underscores the company’s export-oriented business model, solid market positioning, and established reputation abroad.
The Group’s order backlog rose 24.2% YoY to EUR 929.6m, pointing to a healthy revenue pipeline. In Q1 alone, new orders reached EUR 239.6m, a 10.1% YoY increase. Consequently, the book-to-bill ratio declined from 2.24 in Q1 2025 to 1.85 in Q1 2025.
Operating expenses rose to EUR 83.1m, up 17.7% YoY. The sharpest cost increase came from employee related expenses (+38.2% YoY), reflecting ongoing investments in salaries, bonuses, and hiring to support expansion. On the other hand, material costs rose by 3.7% YoY, aided by a strategic pivot to variable pricing contracts over fixed ones – a move aimed at margin protection amid cost volatility.
With top-line growth significantly outpacing expense growth, EBITDA jumped 74.9% YoY to EUR 46.7m, translating to an EBITDA margin of 36.1% (+8.5 p.p. YoY). Normalized EBITDA followed a similar trend, rising 75.7% YoY to EUR 46.5m, with a normalized margin of 35.9% (+8.6 p.p. YoY). Net profit attributable to majority shareholders surged 78.5% YoY to EUR 37.3m.
Končar D&ST key financial indicators (Q1 2025 vs Q1 2024, EURm)
Source: Končar D&ST, InterCapital Research
Overall, Končar D&ST delivered another standout quarter, posting strong growth across revenue, profitability, and order intake. The Group’s export-driven business model and exposure to energy transition continue to underpin performance. However, management notes that persistent macroeconomic headwinds in Germany and broader EU markets may weigh on transformer demand in the event of prolonged weakness.