Inission (INISS) Q2 2025 earnings summary

Executive summary

• Q2 sales decreased 6.2% year-over-year to SEK 534.5 million, all organic, with lower volumes partially offset by cost reductions and improved gross margin.

• EBITDA for the quarter was SEK 24 million, down SEK 4.5 million from last year; EPS remained flat at SEK 0.6.

• Inission EMS showed organic growth and improved profitability, while Enedo OEM experienced a significant revenue decline and negative EBITA.

• Major events included the listing on Nasdaq Stockholm Main Market, inauguration of new facilities in Tunis and Borås, and the acquisition of UAB Selteka in Lithuania.

• Profitability appears to have stabilized sequentially, with management optimistic that the lowest point has passed.

Financial highlights

• Order intake rose to SEK 516.9 million from SEK 422.1 million year-over-year.

• EBITDA was SEK 45.4 million (50.1), EBITA 24.1 million (28.6), and EBIT 23.2 million (27.7).

• Last 12 months' net sales exceeded SEK 2 billion, with EBITDA of SEK 88 million and a margin of 4.4%.

• Cash flow from operations improved to SEK 39.6 million from SEK -3.6 million.

• Cost-saving initiatives reduced expenses by SEK 8.4 million; depreciation also declined.

Outlook and guidance

• Management expects a recovery in the second half of the year, supported by a stable order book and ongoing cost savings.

• Cost-saving programs continue, targeting annual savings of SEK 50 million.

• Guidance for H2 includes Selteka's contribution, with SEK 75 million revenue and 6% EBITDA margin expected from Selteka.

• Enedo is expected to reach break-even in Q3 and a small profit in Q4, excluding restructuring costs.

• Uncertainty remains regarding sales development in H2 2025 due to market turbulence and order timing.