Bawat Water Technologies (BAWAT) Q2 2025 earnings summary

Executive summary

• Achieved positive EBITDA from June 2025, with BaaS (Ballast-as-a-Service) as the main profitability driver.

• Gross profit margin rose to 43% in H1 2025, up from 13.2% in H1 2024, reflecting a shift to higher-margin services.

• Sales in H1 2025 were SEK 8.3m, slightly below H1 2024 due to fewer ship orders, but offset by increased BaaS activity.

• The company expects continued positive EBITDA in H2 2025, supported by a strong backlog and new contracts.

• Adoption of the Hong Kong convention and global inspection campaigns are expected to drive further demand.

Financial highlights

• H1 2025 sales: SEK 8.3m (H1 2024: SEK 8.8m); gross profit: SEK 3.6m (H1 2024: SEK 1.2m).

• EBITDA for H1 2025: SEK -9.9m (H1 2024: SEK -12.4m); result for the period: SEK -14.9m (H1 2024: SEK -21.6m).

• Cash flow from operations: SEK -14.0m (H1 2024: SEK -11.9m); cash at period end: SEK 5.6m.

• Net interest-bearing debt: SEK 56.3m; equity ratio: -52.1%.

• Directed share issue in January 2025 raised SEK 15.3m gross.

Outlook and guidance

• Positive EBITDA expected for H2 2025, with full-year EBITDA guided between SEK -9m and -6m.

• BaaS and mobile solutions to remain focus areas, with higher margins than traditional system sales.

• Anticipated increase in demand due to regulatory changes and inspection campaigns.