Ratos (RATO) Q2 2025 earnings summary

Executive summary

• Achieved organic growth of 1.3% in subdued and uncertain markets, with improved EBITDA/EBITA margins and lower volatility in cash flows and earnings compared to previous years.

• Strategic divestments, including Airteam and the listing of Sentia, reduced construction industry exposure and focused on industry and critical infrastructure.

• Plantasjen's financial reconstruction and store closures led to improved profitability and stability in the Consumer segment.

• Major capital gains from divestments and a strong financial position contributed to a more resilient business structure.

• Entered H2 2025 with positive momentum and strong financial flexibility.

Financial highlights

• Organic growth of 1.3% year-over-year, with bolt-on acquisitions adding 2 percentage points.

• Adjusted EBITA/EBITDA margin increased by 3.5 percentage points, reaching 15.5% for continuing operations.

• Net sales for continuing operations were SEK 5,594m (down 7% year-over-year); adjusted EBITA was SEK 867m (down 6%).

• Group capital gains of SEK 2.8bn from Airteam and Sentia divestments.

• Cash conversion above 100%, with strong contributions from several companies.

Outlook and guidance

• Continued focus on operational improvements, organic growth, and value-adding measures in a challenging market.

• No significant market improvement forecast for Q3; cautious outlook due to ongoing uncertainty.

• Aiming for mid-single-digit margin for Plantasjen for the full year, barring unforeseen events.