AFRY (AFRY) Q2 2026 earnings summary

Executive summary

• Order backlog reached SEK 22.4 billion, up 8% year-over-year, with growth across all divisions, especially Energy, reflecting strong demand in energy, mining, and defense segments.

• Net sales declined 2.4% year-over-year to SEK 6,511 million in Q2, mainly due to strategic capacity adjustments and subdued market activity in some sectors.

• EBITA margin excluding items affecting comparability was stable at 6.7% in Q2, with utilization rate improving to 73.5%.

• Strategic restructuring program completed, shifting focus to organic growth, efficiency improvements, and profitability uplift to meet 2028 targets.

• Key contract wins in healthcare infrastructure, biofuels, and grid modernization highlight growth opportunities.

Financial highlights

• Q2 net sales were SEK 6,511 million (-2.4% year-over-year); H1 net sales SEK 12,836 million (-4.4%).

• EBITA excluding items affecting comparability was SEK 434 million in Q2 (margin 6.7%), SEK 907 million in H1 (margin 7.1%).

• Operating cash flow in Q2 was SEK 830 million, up significantly year-over-year, driven by working capital changes.

• Available liquidity stood at SEK 5.1 billion; net debt increased to SEK 4,727 million due to dividend payout and AMC acquisition.

• SEK 54 million in restructuring costs reported as IAC in Q2; total restructuring costs reached SEK 293 million.

Outlook and guidance

• Focus is now on organic growth, cost discipline, and capturing profitability uplift following restructuring.

• 2028 targets reaffirmed: SEK 35 billion net sales, 10% EBITA margin, and net debt/EBITDA of 2.5x.

• Majority of backlog to be delivered before end of 2027; about 50% expected as revenue in the next 12 months.

• Recruitment pace to increase, especially in energy division, to support growth.

• Continued investments in digital and AI initiatives, and scaling global delivery centers for efficiency.