AAK (AAK) Q2 2025 earnings summary

Executive summary

• Operating profit increased 16% at fixed FX, excluding one-time restructuring and divestment impacts, despite a 2% volume decline, driven by improved product mix and operational efficiency.

• Profitability remained strong, with operating profit per kilo at SEK 2.37, and ROCE at 21.9%, both excluding restructuring costs.

• Operating cash flow was SEK 524 million, and net debt/EBITDA was 0.63, reflecting a strong balance sheet.

• SEK 250 million restructuring cost recognized in Q2 for the Fit to Win program.

• The company remains committed to its 2030 aspiration of SEK 3+ operating profit per kilo and outgrowing the underlying market on volumes.

Financial highlights

• Operating profit per kilo reached SEK 2.37, up 8% YoY (11% in one source), and operating profit (excl. IAC) was SEK 1,162 million, up 16% YoY at fixed FX.

• Q2 2025 net sales increased 2% to SEK 11,300 million, with negative currency effects of SEK 1,065 million.

• Net debt to EBITDA was 0.63 after the annual dividend payment; free cash flow was SEK 157 million.

• CapEx for the quarter was SEK 376 million, with full-year guidance of SEK 1,250 million.

• Earnings per share (excl. IAC) rose to SEK 3.26 from SEK 3.11.

Outlook and guidance

• Management remains prudently optimistic about long-term growth, focusing on commercial execution and customer engagement.

• The Fit to Win program is on track to deliver SEK 300 million in annual savings by mid-2026, with SEK 50 million expected in 2025.

• Continued commitment to 2030 targets: profitability above SEK 3/kg, double-digit operating profit growth, and volume growth outpacing the market.

• No material impact expected from recent fire incident or U.S. tariff changes; ongoing optimization and innovation programs to support future growth.