Ependion (EPEN) Q2 2025 earnings summary

Executive summary

• Order intake increased 16% year-over-year to SEK 558 million, with all segments contributing and Welotec acquisition completed and integrated.

• Sales declined 5% to SEK 561 million, impacted by lower order intake in late 2023/early 2024 and product phase-outs.

• EBIT improved to SEK 62 million (11% margin), up from 10.2% last year, despite a SEK 9 million FX headwind.

• Strong free cash flow of SEK 62 million in the quarter, supported by lower working capital.

• Welotec acquisition strengthened the energy segment and Edge Computing capabilities.

Financial highlights

• Order intake: SEK 558 million (+16% year-over-year); Sales: SEK 561 million (-5%); EBIT: SEK 62 million (11%).

• Net income: SEK 30.3 million; EPS: SEK 0.98–0.99, down from 1.37 last year.

• Book-to-bill ratio at 1.00; backlog at SEK 1.1 billion.

• FX headwinds reduced EBIT by SEK 9 million (1.6 percentage points); financial net negatively impacted by FX movements.

• Equity ratio increased to 51.5%; net debt at SEK 780 million.

Outlook and guidance

• Medium- and long-term prospects remain positive, with confidence in achieving growth and profitability targets.

• Near-term outlook remains uncertain due to geopolitical and economic factors affecting global trade.

• Continued focus on cost discipline and strategic investments.

• Financial targets: 10% average organic growth, 15% EBIT margin, and dividend payments.