Momentum Group (MMGR) Q2 2025 earnings summary

Executive summary

• Revenue increased by 7% and EBITDA/EBITA improved by 5% year-over-year in Q2 2025, driven mainly by six acquisitions amid a challenging global environment and soft demand.

• Six companies were acquired year-to-date, with two in Q2, adding SEK 300 million in annual revenue and strengthening positions in Norway's energy, process, and sealing technology sectors.

• The group maintained stable earnings, cash flow, and a strong financial position, leveraging a decentralized structure and effective cost control to adapt to market changes.

Financial highlights

• Net sales rose 7% to SEK 824 million in Q2 2025; organic growth was -2% due to subdued demand and fewer trading days.

• EBITDA/EBITA increased by 5% to SEK 92 million, with an EBITDA/EBITA margin of 11.2%.

• Operating profit reached SEK 78 million (operating margin 9.5%), and profit after financial items was SEK 70 million, unchanged year-over-year.

• Earnings per share remained at SEK 1.05 for the quarter; net profit for Q2 was SEK 54 million.

• Cash flow from operating activities was SEK 60 million in Q2 and SEK 152 million for Jan–Jun 2025.

• For the six-month period, revenue was nearly SEK 1.6 billion (+9%), with EBITDA/EBITA up 3% to SEK 168 million (margin 10.8%).

Outlook and guidance

• The group targets 15% annual EBITDA growth to double earnings by 2026, focusing on stable earnings growth and increased EPS.

• Plans to continue acquisitions and organic improvements, maintaining low leverage and strong cash flow.

• Contingency plans are in place to address economic, inflationary, and currency uncertainties.

• Management expects cautious demand typical of a mild recession, with aftermarket demand to recover as confidence improves.