I-Tech (ITECH) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw a 26% year-over-year decline in net sales after two strong quarters, but H1 2025 delivered double-digit volume growth, a 9% increase in net sales, and a 30% EBITDA margin.

• The business remains heavily concentrated in Asia, with South Korea, Japan, China, and Singapore as key markets, and a broadening customer base contributing 28% of H1 sales with 41% volume growth.

• The company maintains an asset-light model with unique technology and strong intellectual property in antifouling coatings.

Financial highlights

• Q2 2025 net sales were MSEK 31.6 (down 26% year-over-year); H1 2025 net sales reached MSEK 88.5 (up 9% year-over-year).

• Q2 2025 gross margin improved to 59% from 53% in Q2 2024, driven by new suppliers, process improvements, and pricing strategies.

• Q2 2025 EBITDA margin was 21%; H1 2025 EBITDA margin reached 30%.

• Cash balance increased 34% year-over-year to MSEK 112.7, with cash flow from operating activities for H1 at MSEK 28.8.

• Exchange rate headwinds resulted in a 13% negative impact.

Outlook and guidance

• Underlying business momentum remains positive, with new customer product launches and business development activities expected to support future growth.

• Gross margin is expected to remain sustainable, though subject to minor fluctuations based on customer and supplier mix.

• Market turbulence, currency headwinds, and regulatory developments in the EU for biocides, including Selektope, are expected to persist.

• No detailed forward-looking sales guidance provided.

• One major customer faces financial constraints, potentially impacting 2025 volumes.