Mips (MIPS) Q2 2025 earnings summary

Executive summary

• Achieved 12% organic growth in Q2 2025, with year-to-date organic growth at 23%, despite challenging tariff conditions and rapid implementation impacting all categories.

• Sales improved over the quarter as tariff effects became more predictable, with volume growth in the U.S. and strong momentum in Europe.

• EBIT/operating profit decreased 22% in Q2 to SEK 41 million, mainly due to higher legal costs and negative forex effects.

• Gross margin improved to 74.2% from 72.9%, driven by favorable sales mix.

• Management remains confident in long-term strategy and financial targets.

Financial highlights

• Q2 net sales increased 1% to SEK 135 million, with 12% organic growth after currency effects.

• Gross profit rose 3% to SEK 100 million, gross margin at 74.2% (up from 72.9%).

• EBIT down 22% to SEK 41 million; EBIT margin decreased to 30.1% from 38.9%.

• Operating cash flow SEK 18 million in Q2, SEK 55 million for H1.

• H1 net sales up 16% to SEK 251 million (23% organic), EBIT flat at SEK 65 million, EBIT margin at 25.9%.

Outlook and guidance

• Short-term uncertainty expected to persist due to tariffs, but not as severe as Q2.

• Acceleration in organic growth expected in H2, with Q3 likely around 20% and Q4 trending higher.

• No change to long-term sales guidance or category ambitions; targeting SEK 2 billion in sales by 2029, requiring over 30% annual growth.

• Management expects continued growth and investment despite external challenges.