Careium (CARE) Q2 2025 earnings summary

Executive summary

• Net sales declined 11.9% year-over-year in Q2 2025 to SEK 202.1 million, mainly due to financial lease accounting and lower product sales, but gross margin improved to 43.3% from 41.7%.

• Operating profit (EBIT) fell to SEK 10.0 million (margin 4.9%), with profit for the period at SEK 6.5 million versus SEK 13.9 million in Q2 2024.

• Cash flow from operating activities increased to SEK 20.2 million from SEK 14.0 million, and the company remains well-financed with SEK 34.1 million in cash.

• The company is investing in digital platforms and expanding in France and the UK, with a new five-year contract in the UK and a first order in France.

• Guidance for 2025 is unchanged, expecting increases in net sales, profitability, and free cash flow before acquisitions compared to 2024.

Financial highlights

• Q2 net sales: SEK 202.1 million (down 11.9% year-over-year); H1 net sales: SEK 409.5 million (down 7.0%).

• Service sales fell 9.4% to SEK 147.9 million; product sales dropped 18.0% to SEK 54.2 million.

• Gross margin Q2: 43.3% (up from 41.7%); H1: 43.9% (up from 42.2%).

• Q2 EBIT: SEK 10.0 million (down 54.1%); H1 EBIT: SEK 26.6 million (down 34.9%).

• Q2 profit for the period: SEK 6.5 million (down 53.6%); H1: SEK 14.0 million (down 50.5%).

Outlook and guidance

• Net sales, profitability, and free cash flow before acquisitions expected to increase in 2025 compared to 2024.

• Negative impact from financial lease accounting in Sweden expected to decrease significantly from early 2026.

• Continued focus on B2B, tendered opportunities, and M&A pipeline review.

• Optimism for improved performance in the second half of 2025.