Garo (GARO) Q2 2025 earnings summary

Executive summary

• Operational pace increased with a clear direction and focus on execution across business areas, supported by leadership changes and integration of Swedish sales organizations.

• Strong international performance in Electrification, especially in Ireland and the UK, while Sweden's residential market remained weak.

• Cost control and inventory optimization measures improved cash flow and EBIT.

• CEO assumed interim responsibility for E-mobility, with a new Country Manager for Sweden appointed.

Financial highlights

• Net sales for Q2 were MSEK 266.5, down 13% year-over-year; Electrification down 7%, E-mobility down 28%.

• Adjusted EBIT improved to MSEK 1.0 from -4.3, with a margin of 0.4% versus -1.4% last year.

• Cash flow from operating activities after working capital changes was MSEK 9.4, up from -9.3.

• Net debt stood at MSEK 279.6, with an equity asset ratio of 51.4% and liquidity of MSEK 75.2.

• Positive currency effects contributed MSEK 1.6 to EBIT in Q2.

Outlook and guidance

• Outlook remains stable with disciplined margin focus and gradual recovery expected in public charging, especially AC charging.

• Long-term growth drivers in electrification and energy efficiency remain intact, with short-term caution maintained.

• No major new product launches in E-Mobility expected in H2 2025; focus remains on sales and platform upgrades.

• Nordic housing construction recovery delayed, with a turnaround not expected until 2026.