engcon (ENGCON) Q2 2025 earnings summary

Executive summary

• Q2 2025 achieved record net sales and order intake, matching or exceeding levels last seen in 2022, driven by strong demand and volume growth in the Nordics and Europe, especially Germany and the Netherlands.

• The company expanded its product offering to include entry-level and mid-tier configurations, aiming to accelerate market penetration beyond early adopters.

• Americas faced uncertainty and a weak quarter due to new tariffs, impacting order intake, while Asia-Oceania, particularly Japan and Korea, showed strong sales growth supported by government incentives.

• Margins were pressured by a stronger Swedish Krona and less favorable market and product mix.

• Focus on developing shared core values and corporate culture to support future growth.

Financial highlights

• Net sales reached SEK 530 million, up 18% year-over-year (organic 23%), with a negative currency effect of SEK 25 million.

• Order intake rose 4% to SEK 451 million (organic 10%), with a negative currency effect of SEK 24 million.

• EBIT increased 15% to SEK 94 million; EBIT margin at 17.8% (down from 18.2%); gross margin at 40.7% (down from 44.9%).

• Profit for the period up 13% to SEK 70 million; basic EPS at SEK 0.46 (up 26%).

• Cash flow from operations was SEK 20 million for Q2; total cash flow for the quarter was SEK -55 million.

Outlook and guidance

• Management expects continued year-over-year growth in Q3 and Q4, led by Nordic recovery and increased penetration in Europe and Asia-Oceania.

• The company remains committed to its long-term EBIT margin target above 20%, despite ongoing currency headwinds.

• Underlying market momentum is solid, with optimism for further growth as macroeconomic conditions improve.