Borgestad (BOR) Q2 2025 earnings summary

Executive summary

• Adjusted profit before tax for Q2 2025 was MNOK 20.9, reflecting a year-over-year decline due to lower activity in Höganäs Borgestad, while Agora Bytom maintained strong momentum and profit growth.

• Agora Bytom, the largest investment, reported Q2'25 EBITDA of MNOK 12.1, up from MNOK 10.7 in Q2'24, with continued positive development.

• Höganäs Borgestad acquired Emcotech AB, a Swedish industrial flue gas cleaning company, at the end of the quarter.

• Strategic refinancing of Höganäs Borgestad's loan facilities extended maturity to June 2028 and reduced margin by 0.8%.

• Dividend of MNOK 34.6 distributed in Q2'25, impacting equity and cash position.

Financial highlights

• Group revenue for Q2'25 was MNOK 316, down 6.5% year-over-year, mainly due to lower activity in Höganäs Borgestad.

• Adjusted EBITDA for the group was MNOK 27.5, down from MNOK 39.8 in Q2'24.

• Net financials weakened due to higher hedging costs for Agora Bytom.

• Working capital increased to MNOK 321, mainly due to higher inventory.

• Available liquidity as of June 30, 2025, was MNOK 126.9, including undrawn credit.

Outlook and guidance

• Höganäs Borgestad expects a stronger H2 2025 and continued positive development through 2026, supported by backlog and cost reductions.

• Agora Bytom revenue and EBITDA are expected to increase slightly, driven by higher occupancy and rent per sqm.

• Focus remains on operational improvements, capital efficiency, and cash flow gains.

• Strategic M&A and liquidity events for Agora Bytom will be continuously reviewed.

• Ongoing global uncertainties and trade tensions could indirectly affect demand, but the refractory industry is seen as resilient.