Nexam Chemical (NEXAM) Q2 2025 earnings summary

Executive summary

• Recycling segment drove strong growth, now over 10% of total sales, offsetting lightweighting weakness and supported by new major customers and international collaborations.

• Net sales reached SEK 54.3 million in Q2 2025, with stable year-over-year performance and improved gross margin to 47%.

• Strategic focus on innovation, sustainability, and expanding presence in Central and Eastern Europe, including new hires and business development initiatives.

• Financial stability maintained through self-generated cash flow and operational upgrades.

• Collaboration with Kullaplast in packaging film attracted significant international interest and new customer dialogues.

Financial highlights

• Q2 2025 net sales: SEK 54.3M (Q2 2024: SEK 53.6M); gross margin: 47% (up from 46%).

• EBITDA for Q2: SEK 1.3M (down from SEK 2.6M Q2 2024) due to increased investments and operational upgrades.

• Cash and cash equivalents at quarter end: SEK 9.1M; unused credit facility: SEK 13.1M.

• Available borrowing capacity up to SEK 30M; interest-bearing debt at period end: SEK 30.2M.

• Operating loss before tax for Q2 2025: SEK -3.29M; earnings per share: SEK -0.03.

Outlook and guidance

• Strong outlook for H2 with continued growth in Recycling, stable base business, and a robust pipeline of new opportunities.

• Investments in Central and Eastern Europe expected to yield returns in coming quarters and years.

• Q3 expected to be seasonally weaker due to customer shutdowns, but underlying demand in growth segments remains healthy.

• Organization can double volume without major investment; contribution margin expected to remain stable.

• No clear timeline for recovery in lightweighting; focus remains on positioning for future upturn.