Guideline Geo (GGEO) Q2 2025 earnings summary

Executive summary

• H1 2025 net sales grew 8.8% to 94.1 MSEK, with order intake up 8.3% and positive operating cash flow of 11.1 MSEK, despite currency and tariff headwinds.

• Q2 2025 net sales were 44.4 MSEK, down 14% year-over-year, while order intake was 47.6 MSEK; EBITDA was 1.2 MSEK and EBIT -3.0 MSEK.

• Strong sales growth in Asia-Pacific and Americas offset EMEA weakness, with infrastructure and utility locating sectors rebounding, especially in the US, UK, and Korea.

• Acquisition of the MALÅ distributor in Australia in January 2024 contributed to sales growth and expanded product offerings in Oceania.

• Product innovation continued with multiple new launches, including mobile solutions, real-time software, and accessories, supporting aftermarket and customer engagement.

Financial highlights

• H1 2025 EBITDA was 3.0 MSEK (3.2% margin), up from 1.2 MSEK last year; Q2 EBITDA margin was 2.8%, EBIT margin -6.7%.

• Net cash at quarter-end was 20.9 MSEK, with an additional 10 MSEK in unused credit; equity at 127.7 MSEK (soliditet 76.5%).

• Operating cash flow for H1 was 11.1 MSEK, a turnaround from -10.6 MSEK last year.

• Americas sales grew 12% and APAC 26% in H1, while EMEA declined 12%.

• Currency effects negatively impacted EBITDA by 4.3 MSEK in H1 2025; US tariffs increased from 10% to 15% in August.

Outlook and guidance

• Management expects continued growth in infrastructure and APAC markets, with local US presence mitigating tariff impact.

• Seasonal effects expected, with stronger sales and profitability in the second half of the year.

• Large tenders (2–5 MSEK) occur periodically, with potential for significant contracts.

• Long-term strategy focuses on raising profitability for more stable positive EBIT.

• Global sales and diversified markets provide resilience against macroeconomic turbulence.