NOTE (NOTE) Q2 2025 earnings summary

Executive summary

• Q2 sales reached SEK 980 million, with a SEK 35 million negative currency effect; operating profit was SEK 101 million and margin 10.3%.

• Earnings per share increased 7% year-over-year to SEK 2.65; net debt at SEK 117 million after dividend payout, with a robust cash position of SEK 634 million.

• Order backlog increased 6% sequentially and is down 1% year-over-year, indicating improving customer sentiment and future growth expectations.

• Dividend of SEK 7 per share (SEK 199.4 million) was approved and paid in Q2, reflecting high profitability and strong cash flows.

• Delivery performance and quality have returned to pre-component crisis levels, exceeding demanding automotive industry standards.

Financial highlights

• Operational cash flow year-to-date was SEK 260 million, with SEK 214 million after investments, exceeding dividend payouts.

• Q2 operating margin was 10.3% (9.8% Q2 2024); adjusted operating margin 9.6%.

• Equity ratio stands at 49%, and cash flow continues to outpace profit after tax.

• Q2 profit after tax was SEK 76 million; H1 profit after tax was SEK 141 million.

• Net sales per employee for Q2: SEK 668,000; average number of employees: 1,467.

Outlook and guidance

• Full-year sales guidance narrowed to SEK 3.9–4.1 billion, adjusted downward due to SEK 100 million negative FX impact; local currency sales expected to grow 8-9%.

• Margins are expected to remain in the 9.5%-10.5% range; Q3 may be slightly lower, Q4 higher.

• Second half of the year guided for 5-10% growth, supported by a 6% order backlog increase.

• Security & Defence and GreenTech segments expected to continue strong growth; industrial and communication segments to recover in H2.

• At least one acquisition expected to close in 2025, with improved M&A market conditions.