BALCO GROUP (BALCO) Q2 2025 earnings summary

Executive summary

• Achieved record-high order intake of 519 MSEK, up 37% year-over-year, driven by strong performance in renovation, maritime, and Norwegian segments.

• Net sales declined 12% to 331 MSEK, impacted by project delays and negative currency effects.

• Profitability was unsatisfactory due to delayed project startups, affecting sales, cash flow, and earnings.

• Structural measures, including production consolidation, moves, and staff reductions (notably in Finland), were completed as planned.

• CFO Michael Grindborn announced departure in autumn.

Financial highlights

• Net sales for the quarter were 331 MSEK (374 MSEK last year); organic growth -7%, currency effect -5%.

• Adjusted EBITA was 6 MSEK (1.9% margin), down from 19 MSEK (5.0%) last year.

• Adjusted EPS was 0.01 SEK, compared to 0.36 SEK last year; YTD adjusted EPS: -0.23 SEK (0.47 SEK).

• Operating cash flow was negative 30 MSEK, versus positive 48 MSEK last year; H1: -29 MSEK (82 MSEK).

• Order backlog increased 4% to 1,439 MSEK.

Outlook and guidance

• Cautiously optimistic for continued high order intake in renovation projects for the rest of the year.

• Recovery in the new build segment expected to take longer.

• Focus remains on profitability improvement and cost-saving measures.

• Sales and earnings expected to remain affected in coming quarters.