Alleima (ALLEI) Q2 2025 earnings summary

Executive summary

• Revenues declined 11% year-over-year to SEK 4,765 million, with organic growth of -4% amid weaker demand in Europe and North America and significant FX headwinds.

• Adjusted EBIT margin was 9.5%, showing resilience despite lower revenues and a SEK 150 million negative currency impact.

• Order intake rolling 12 months declined 2% to SEK 18,911 million, with backlog remaining solid in oil & gas, nuclear, and medical segments.

• Ongoing growth initiatives and improved product mix in more profitable, less cyclical segments.

• Strong financial position and agility maintained despite increased macroeconomic and geopolitical uncertainty.

Financial highlights

• Quarterly revenues just below SEK 4.8 billion, with a 4% negative organic growth.

• Adjusted EBIT was SEK 454 million (9.5% margin), down from SEK 592 million (11.1%) last year.

• Free operating cash flow was SEK 347 million, lower than last year due to lower earnings and higher CapEx.

• Adjusted EPS, diluted, was SEK 1.35 (down from 2.23); reported EPS was SEK 0.81 (down from 2.54).

• Net debt position of SEK -33 million, indicating net cash; net debt/equity at -0.02.

Outlook and guidance

• Q3 expected to be seasonally weaker due to extended maintenance shutdowns, leading to higher under-absorption and margin dilution.

• Currency and metal price headwinds expected to negatively impact Q3 EBIT by SEK 115–150 million and SEK 150–171 million, respectively.

• Full-year CapEx guidance maintained at SEK 1.2 billion for 2025.

• Tax rate guidance remains at 23%-25% for 2025.

• Long-term targets: organic growth above end-market, adjusted EBIT margin above 9%, net debt/equity below 0.3x, and dividend at 50% of adjusted net profit.