Nilfisk (NLFSK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was €268.9 million, reflecting a -1.1% organic growth year-over-year, with EMEA and APAC regions growing and Americas declining due to soft demand and production issues.

• EBITDA before special items was €36.4 million (13.5% margin), down from 14.1% last year, impacted by lower revenue and increased investments.

• Cost reduction program launched in Q2, including workforce reductions and production consolidation in Hungary, to align costs with business volumes and address rising overheads.

• Net zero emissions targets validated by the Science-Based Targets initiative, with a commitment to achieve net zero across the value chain by 2040.

• Net profit fell to €6.5 million from €14.2 million year-over-year, impacted by higher special items and financial costs.

Financial highlights

• Gross margin was 42.0% in Q2 2025, stable year-over-year, supported by disciplined pricing and operational efficiency despite higher tariffs.

• Free cash flow was negative at -€16.3 million, mainly due to higher working capital and restructuring costs.

• Operating profit before special items was €20.7 million (7.7% margin), down from €23.4 million (8.4%).

• Overhead costs decreased to €92.2 million, driven by back-office reductions.

• Capital expenditure was about $7.5 million, a significant reduction from last year.

Outlook and guidance

• 2025 outlook remains unchanged: organic revenue growth of 1% to 3% and EBITDA margin before special items of 13% to 14%.

• Assumptions include stable EMEA markets, neutral US development, moderate APAC growth, and ability to offset tariffs through pricing and supply chain initiatives.

• Cost reduction effects and supply chain flexibility are expected to support margin guidance in H2.

• Working capital targeted to return to normal levels within the next few quarters.