CTEK (CTEK) Q2 2025 earnings summary

Executive summary

• Q2 began with macroeconomic challenges but ended with a strong recovery, driven by high demand in Low Voltage products and robust online sales in the Consumer division.

• Net sales for Q2 were SEK 197 million, down from SEK 212 million year-over-year, with growth in low voltage offset by lower EVSE sales due to the end of the General Motors contract.

• Gross margin improved to 56.3% due to favorable product mix and strong Low Voltage demand.

• Adjusted EBITA/EBITDA was SEK 14 million (6.9%), and EBIT increased to SEK 9 million (4.3%).

• Expansion into new product categories, including Power Solutions and Premium Boosters, is expected to drive future growth.

Financial highlights

• Consumer division accounted for 65% of revenue; net sales were SEK 128 million, with organic growth of 0.3%.

• Professional division made up 35% of revenue, with a 6% organic volume decline mainly from the loss of the GM contract.

• CapEx for Q2 was SEK 16 million, representing 8% of revenue and expected to normalize to 5-7% in coming years.

• Net cash flow from operations was SEK 31 million, and cash and cash equivalents at period-end were SEK 113 million.

• Net debt/Adjusted EBITDA (LTM) improved to 1.8x, well below the 3x target.

Outlook and guidance

• New financial targets for 2028: SEK 2 billion revenue, 20% adjusted EBITA margin, net debt below 3x, and 30% dividend payout ratio.

• Growth expected from existing business and new product categories, with major impact from 2026 onward.

• Entry into the U.K. and German markets for EVSE expected to drive future growth, with German product launch late 2025 and impact mainly in 2026.

• No significant CapEx increase expected for new product launches; focus is on reallocating existing budget.

• Management confident in long-term profitable growth positioning.