Addtech (ADDT) Q2 24/25 earnings summary

Executive summary

• Net sales increased by 5% in Q2 to SEK 5,127 million, with 2% organic growth and high activity across most business areas.

• EBITA grew 5% in Q2 to SEK 764 million, maintaining a 14.9% margin; six-month EBITA up 12% to SEK 1,595 million, margin at 15.1%.

• Nine acquisitions signed year-to-date, adding up to SEK 1,250 million in annual sales and supporting growth and profitability.

• Order intake was good, with a sequential increase month by month, though the anticipated post-summer demand uptick was delayed.

• Market conditions remained stable overall, though performance varied by business area.

Financial highlights

• Net sales for the first half rose 6% to SEK 10,565 million, with 2% organic and 5% acquired growth.

• EBITA for H1 increased 12% to SEK 1,595 million, margin improved to 15.1% from 14.3% year-over-year.

• Operating profit up 11% to SEK 1,353 million; profit after tax up 12% to SEK 941 million; EPS before dilution reached SEK 3.40.

• Cash flow from operating activities was SEK 1,195 million for H1; working capital to sales ratio at 72%.

• Gearing increased due to seasonal dividend payout but financial position remains strong.

Outlook and guidance

• Short-term outlook remains positive, supported by a solid order backlog, strong positions in attractive niches, and a diversified portfolio.

• The remainder of the year looks solid, with order books filled; more uncertainty for 2025-2026.

• Acquisition pipeline remains strong, with further deals expected in both Nordic and selected international markets.