CAG Group (CAG) Q2 2025 earnings summary

Executive summary

• Q2 revenue declined 5.4% year-over-year to 213.7 MSEK, with stable margins and positive price trends offsetting fewer working days and a subsidiary closure.

• H1 margin improved to 9.2% (from 8.8%), with revenue down 3.1% year-over-year; after-tax profit slightly decreased.

• Defence segment demand remained strong, now representing 35% of revenues, with new assignments from key industry and public sector clients.

• Recurring revenues increased to over 20% of total sales, driven by service contracts and managed services.

• Workforce declined to 415–418 in Q2 from 443–444 last year, impacting revenue but not per-employee profitability.

Financial highlights

• Q2 revenue: 213.7 MSEK (225.9–226 prior year), adjusted EBITA margin 8.4%, after-tax profit 12.0 MSEK.

• H1 revenue: 444–444.1 MSEK (458–458.2 prior year), adjusted EBITA margin 9.2%, after-tax profit 25.5 MSEK.

• Cash flow from operations: 30.1 MSEK in Q2, 44.7 MSEK in H1, both improved year-over-year.

• Dividend payment of 4.10 SEK/share (up from 3.90 SEK/share) paid in Q2.

• Net income Q2: 12.0 MSEK (11.9); EPS Q2: 1.68 SEK (1.67).

Outlook and guidance

• Solid demand expected in Defence; general market activity anticipated to recover over the year.

• New medium-term targets: 10% annual revenue growth (organic and via acquisitions) and adjusted EBITA margin above 10%.

• Net debt should not exceed 1.5x adjusted EBITDA; dividend payout target is at least 50% of net profit.

• Price and salary inflation returning to normal; M&A activity expected to improve compared to 2024.

• Market recovery in e-commerce and new project starts remains slow; focus on cost control and strategic positioning.