NFO Drives (NFO) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 dropped to SEK 5.5m from SEK 11.0m year-over-year, mainly due to the loss of the largest customer, which previously accounted for 60–70% of revenue.

• Gross margin improved to 26.9% from 23.5% year-over-year, driven by a higher share of sales to customers with lower discounts.

• EBIT for Q2 2025 was SEK -3.1m, impacted by SEK 2.1m in one-time costs, including a SEK 1.8m settlement for early product issues.

• A new business plan targets profitability at less than half previous volumes, leveraging lower development costs and in-house production.

• Management remains positive about new product lines and expects sufficient capital to reach positive cash flow despite a 60% initial revenue drop.

Financial highlights

• Q2 2025 net sales: SEK 5.5m (Q2 2024: SEK 11.0m); H1 2025: SEK 13.7m (H1 2024: SEK 21.9m).

• Q2 2025 gross profit: SEK 1.5m (Q2 2024: SEK 2.6m); gross margin: 26.9% (23.5%).

• Q2 2025 EBIT: SEK -3.1m (Q2 2024: SEK -0.6m); H1 2025 EBIT: SEK -3.7m (H1 2024: SEK -1.4m).

• Q2 2025 pre-tax result: SEK -2.9m (Q2 2024: SEK -0.9m); H1 2025: SEK -3.9m (H1 2024: SEK -1.2m).

• Q2 2025 cash flow: SEK -1.2m (Q2 2024: SEK -0.2m); H1 2025: SEK -4.6m (H1 2024: SEK -1.7m).

Outlook and guidance

• New product lines are receiving positive market feedback, with increased sales to other customers offsetting some of the lost volume.

• Management expects to maintain operations and reach positive cash flow with current capital, despite a 60% lower revenue base.

• Lower development and production costs are expected as new products are manufactured in-house.