Elanders (ELAN) Q2 2025 earnings summary

Executive summary

• Net sales declined 7% year-over-year in Q2 2025, with organic growth down 5% due to weaker demand across most regions and segments; only Asia showed positive growth at 2%.

• Adjusted EBITA/EBITDA margin improved to 5.5% in Q2, driven by cost-saving measures.

• Strong cash conversion at 106% in Q2, with significant reduction in working capital and net debt.

• Leadership changes included new CEOs at LGI and Group COO to accelerate digital and operational initiatives.

• Structural measures led to one-off costs, with annual cost savings expected.

Financial highlights

• Q2 2025 net sales: SEK 3,044M (Q2 2024: SEK 3,503M); H1 net sales: SEK 6,277M (H1 2024: SEK 6,771M).

• Adjusted EBITA: SEK 167M in Q2 (Q2 2024: SEK 215M); margin: 5.5%.

• Free cash flow: SEK 333M in Q2; cash conversion: 106%.

• Net debt reduced by SEK 254M in H1 (excl. IFRS 16); total net debt decreased by SEK 888M.

• Dividend of SEK 147M paid in Q2.

Outlook and guidance

• Ongoing trade negotiations, geopolitical tensions, and market volatility are causing significant uncertainty, delaying customer decisions and demand recovery.

• No forecast for 2025 provided; management expects gradual demand recovery once uncertainties subside.

• Continued focus on cost reduction, efficiency improvements, and operational optimization.

• New business opportunities anticipated from trends toward decentralized production and regional logistics.