Storskogen Group (STOR) investor relations material

Executive summary

• Net sales for Q2 2025 were SEK 8.5 billion, down 9% year-over-year, mainly due to divestments and weak demand in Services and Industry.

• Adjusted EBITDA/EBITA was SEK 843 million, down 6%, but margin improved to 10%, the highest since 2021.

• Profitability improved year-on-year, supported by efficiency measures, cost control, and resumed acquisitions.

• Net profit grew by 8% in Q2, with adjusted diluted EPS up 15% to SEK 0.19.

• Three acquisitions completed post-Q2, signaling a return to selective M&A activity.

Financial highlights

• Adjusted EBITDA/EBITA margin reached 10% in Q2; LTM margin improved to 9.6% from 8.7% last year.

• Cash flow from operations was SEK 527 million in Q2, with LTM cash conversion at 80% but Q2 below target.

• Leverage ratio reduced to 2.4x, within the 2–3x target range.

• Adjusted EPS grew 15% in Q2 and 22% for the first six months year-over-year.

• Return on equity improved to 6% LTM; return on capital employed at 10.4%.

Outlook and guidance

• Q3 is expected to be seasonally softer, with cautious optimism despite unpredictable market conditions.

• Margin improvement expected to continue, supported by cost control and divestments.

• Acquisitions to be resumed gradually, with several already completed post-Q2.

• No significant debt maturities until 2027 after recent refinancing.

• Focus remains on maintaining cash conversion above 70% and disciplined M&A aligned with balance sheet capacity.