Energy Save (ESGR) Q2 25/26 earnings summary

Executive summary

• Net sales dropped 85% year-over-year to SEK 15.4 million, mainly due to a 95% decline in OEM sales from customer stock balancing and delayed deliveries.

• ES/own brand sales increased 10% year-over-year and 40% sequentially, partially offsetting OEM declines.

• Cost-saving measures reduced operating expenses by 26% year-over-year.

• A SEK 25 million short-term loan was secured post-period, 80% guaranteed by the Swedish Export Credit Agency, to strengthen liquidity and finance inventory.

• Distribution expanded to 31 countries, including a new agreement in Spain and Portugal.

Financial highlights

• Total revenue for the quarter was SEK 16.7 million, with net sales at SEK 15.4 million, down 85% year-over-year.

• EBIT margin was -96.1% for the quarter, reflecting sharply lower sales and one-off reorganization costs.

• Gross margin improved to 29.1% from 25.8% year-over-year.

• Operating expenses decreased by 26% year-over-year, with external costs down 46%.

• Negative operating cash flow of -SEK 8.6 million, compared to -SEK 7.1 million in the prior year.

Outlook and guidance

• Management expects sales to recover in H2 2025, especially in Q3 and Q4, as OEM customers resume orders and new product launches drive growth.

• Launch of ES propane platform and entry into new markets (Spain, Portugal, Germany, Benelux, Italy) expected to support growth.

• Ongoing focus on cost discipline and customer-driven product development.

• Lower interest rates, reduced inflation, and improved energy price balance support a positive outlook.

• Seasonal variations indicate stronger performance in the second half of the year.