Alcadon Group (ALCA) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 declined by 11% year-over-year to SEK 378 million, with a 5.3% decrease for the first half to SEK 781 million, reflecting continued weakness in the broadband market and a strategic focus on profitability over volume.

• Adjusted EBITA for Q2 fell 32% to SEK 22 million, and for H1 dropped 26% to SEK 44 million, impacted by restructuring and transformation costs, while reported EBITA for H1 was flat at SEK 52 million.

• Gross margin improved slightly to 25.7% for H1, supported by a stronger product mix and reduced operating expenses, despite lower sales.

• Cash flow from operating activities remained strong at SEK 42 million in Q2 and SEK 51 million for H1, aided by significant inventory reductions and working capital management.

• New financial targets were introduced, emphasizing profitability (P/WC 50%), profit growth (10% CAGR), EBITA margin (10%), and indebtedness ratio below 3.

Financial highlights

• Q2 net sales: SEK 378 million (-11% year-over-year); H1 net sales: SEK 781 million (-5.3%).

• Q2 adjusted EBITA: SEK 22 million (-32%); H1 adjusted EBITA: SEK 44 million (-26%).

• Q2 EBITA margin: 5.6% (vs. 7.2% prior year); H1 EBITA margin: 6.6% (vs. 6.2%).

• Q2 earnings per share: SEK 0.31 (vs. 0.45); H1 EPS: SEK 0.65 (vs. 1.06).

• Equity ratio increased to 53% from 52% at year-end.

Outlook and guidance

• No short-term market tailwinds expected; restructuring and cost adjustments to continue in coming quarters.

• Focus remains on profitability, cash flow, and expanding into higher-value segments and new niches.

• Long-term vision to become a leading competence partner in European digitalization, with both organic and acquisition-driven growth.