Instalco (INSTAL) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 declined 3.9% year-over-year to SEK 3,512 million, with a 12-month total of SEK 13.6 billion and a Q2 order backlog of SEK 9,347 million, up 3.2% year-over-year.

• Adjusted EBITDA for the last 12 months was SEK 871 million (6.4% margin), with Q2 adjusted EBITA at SEK 236 million (6.7% margin), showing sequential improvement but still below target.

• Service business remains robust, accounting for 36% of net sales and growing 6% in Q2, providing stability amid market volatility.

• Strong operational cash flow in Q2, with rolling 12-month cash flow above SEK 1 billion and cash conversion at 107%; new SEK 3.4 billion credit facility enhances liquidity.

• Leadership transition announced, with CEO Robin Boheman stepping down and Per Sjöstrand to serve as interim CEO; ongoing operational efficiency programs and management changes to address underperforming units.

Financial highlights

• Q2 net sales declined 3.9% year-over-year to SEK 3,512 million; organic decline was 2.8%.

• Q2 adjusted EBITA was SEK 236 million, margin 6.7%; EBITA margin for Q2 2025 was 6.4%.

• Cash flow from operations in Q2 was SEK 202 million, up 28% year-over-year; rolling 12-month cash conversion reached 107%.

• SEK 182 million in dividends and SEK 38 million in earnouts paid in Q2; cash flow from financing activities positive at SEK 193 million.

• Net debt/EBITDA increased to 3.1x from 2.6x year-over-year, remaining above the long-term target of 2.5x.

Outlook and guidance

• Market remains challenging, especially for new construction, but order backlog has grown for three consecutive quarters and early signs of recovery are visible in metropolitan areas.

• Focus remains on margin improvement, operational excellence, and selective project tendering, with further action programs to improve resilience.

• No change in strategy for German expansion or building automation; continued commitment to these initiatives.

• Organic net recruitment is not expected overall, but targeted hiring in high-performing units and new business areas will continue.

• Long-term prospects supported by demand for technical installations, energy efficiency, and defence investments.