Fagerhult (FAG) Q2 2025 earnings summary

Executive summary

• Q2 2025 results were impacted by ongoing market volatility and an IT incident at Whitecroft in the UK, which reduced Q2 net sales by SEK 42 million and operating profit by SEK 21 million; full operational capability was restored in June.

• Cost improvement measures over the past six months have led to a reduced cost base and improved gross margins, with ongoing reductions planned.

• High sales activity and increased order backlog, with notable M&A activity including the acquisitions of Trato TLV Group (France) and Capelon (Sweden) to strengthen healthcare lighting and smart city applications.

• Leadership transition with new CFO Oscar Wallstén appointed effective July 7, ensuring continuity.

• Market volatility persisted, but positive signs are seen in renovation and early recovery in new build markets.

Financial highlights

• Q2 2025 net sales were SEK 1,848 million, down 14.7% year-over-year; organic decline was 10.4%.

• Q2 order intake was SEK 1,905 million, representing an organic decline of 6.5% year-over-year.

• Operating profit before IAC was SEK 119 million (down 39.3% year-over-year), with a margin of 6.5%.

• Earnings per share before IAC for Q2 was SEK 0.32; for the half-year, EPS before IAC was SEK 0.76.

• Operating cash flow for Q2 was SEK 162 million, down from SEK 280 million last year.

Outlook and guidance

• Gradual market improvement is expected in the second half of the year, supported by a higher order backlog and contributions from recent acquisitions.

• Renovation segment remains a key growth driver, with positive momentum and early signs of recovery in new build.

• Euroconstruct forecasts growth in construction for 2025–2027, especially in renovation, despite a downward revision for 2024.