Bufab (BUFAB) Q2 2025 earnings summary

Executive summary

• Gross margin reached 31.1% (up from 29.8%) and adjusted operating margin improved to 13.1% (from 12.2%) year-over-year, despite a 4.8% revenue decline mainly due to currency effects and slightly negative organic growth of -0.3%.

• Asia Pacific and Americas delivered the strongest growth, while U.K. & Ireland lagged; defense and agriculture sectors showed robust demand.

• Several major customer projects were secured, including a significant contract with Kverneland in Norway.

• Divestment of a small U.S. manufacturing unit is expected to improve Americas profitability.

• A share split (5:1) was completed during the quarter.

Financial highlights

• Revenue for the quarter was SEK 2.039 billion, down 4.8% year-over-year; organic growth -0.3%, currency effect -4.9%, net acquisition/divestment effect +0.4%.

• Adjusted operating profit (EBITA) was SEK 268 million (2.7% YoY); margin 13.1% (12.2%).

• Operating expenses reduced by SEK 8 million year-over-year due to cost initiatives and positive currency effects.

• Cash flow from operating activities was SEK 245 million, with a cash conversion of 89%.

• Net debt/EBITDA improved to 2.5 (from 2.8); SEK 199 million dividend paid in the quarter.

Outlook and guidance

• Continued focus on cost reduction and efficiency expected to yield further improvements in 2025 and 2026.

• Optimistic about future growth, with ongoing efforts to gain market share and improve margins.

• Confident in reaching the 2026 EBITDA margin target of 14%, even without strong organic growth.

• Market uncertainty persists due to tariffs and geopolitical tensions.