Boreo (BOREO) Q2 2025 earnings summary

Executive summary

• Net sales grew 19% year-over-year in Q2 2025 to €40.2 million, with 17% organic growth and this marked the third consecutive quarter of sales growth.

• Operational EBIT for Q2 was €2.2 million, down year-over-year due to higher fixed costs and absence of prior year’s one-time provision releases.

• Gross margin remained stable at 30-31% despite sales mix changes.

• Strategic progress included two acquisitions and the issuance of a €10 million convertible hybrid bond, strengthening the financial position.

• Order books remained stable, supporting short-term performance despite ongoing geopolitical and economic uncertainty.

Financial highlights

• Q2 operational EBIT margin was 5.4% (down from 7% in Q2 2024); reported EBIT rose to €2.5 million.

• H1 2025 net sales up 12% to €74.2 million; H1 operational EBIT up 19% to €3.5 million.

• Cash flow from operations was negative in Q2, mainly due to increased receivables from strong late-quarter sales.

• Net leverage improved to 2.3x by quarter-end, aided by the hybrid bond issuance.

• Equity ratio improved to 42.2%; interest-bearing net debt reduced to €28.2 million.

Outlook and guidance

• Order books remain stable and above prior year, supporting a positive near-term outlook.

• Management targets minimum annual average operational EBIT growth of 15% and minimum ROCE of 15%.

• Focus remains on sustainable long-term profit generation, portfolio development, and further acquisitions.

• Longer-term outlook is uncertain due to global macroeconomic and geopolitical factors.