SinterCast (SINT) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was SEK 31.1 million, down 12% year-over-year, with recurring revenue at 92.3% of total.

• Operating result for Q2 was SEK 11.2 million, yielding a 36.1% margin; EPS was SEK 1.24.

• Year-to-date revenue was SEK 58.1 million, with operating result at SEK 21.4 million and EPS at SEK 2.33.

• Three new high-volume orders were received, and Scania launched a new engine using SinterCast technology.

• First installation in India was commissioned, with a positive outlook for further installations in H2.

Financial highlights

• Q2 gross margin was 71.3% (down from 74.9% last year); operating margin was 36.1%.

• Cashflow from operations in Q2 was SEK 9.1 million, impacted by increased accounts receivable.

• Dividend of SEK 3.50 per share (SEK 24.7 million) paid in May; total 2025 dividend set at SEK 7.00 per share.

• Liquidity at 30 June 2025 was SEK 16.7 million, with an overdraft facility of SEK 12.5 million.

• No loans outstanding as of the reporting date.

Outlook and guidance

• International tariff changes and economic uncertainty may impact sales volumes, new programme launches, and installation revenue targets.

• SinterCast expects to begin paying Swedish income tax in H1 2028.

• Penetration of CGI in heavy-duty commercial vehicles expected to exceed 80% by decade's end.

• Near-term volumes impacted by delayed EPA 2027 and Euro 7 legislation, reducing expected pre-buy effect.