Skako (SKAKO) Q2 2025 earnings summary

Executive summary

• Revenue grew 13% year-over-year to DKK 139 million in H1 2025, driven by strong Minerals segment performance and the OCP contract, despite subdued market conditions, especially in the fastener segment in Northern Europe.

• EBIT before special items declined 34% to DKK 6.7 million, mainly due to delayed OCP project start, lower-margin plant sales, and increased capacity costs.

• Net profit dropped to DKK 0.8 million from DKK 6.0 million, impacted by lower operating profit and discontinued activities.

• Order backlog surged 215% to approximately DKK 190 million, mainly from significant OCP orders and growth in other business areas.

Financial highlights

• Gross profit increased 3.8% to DKK 36.3 million, but gross margin declined by 2.2 percentage points to 26.1% due to a higher share of lower-margin plant sales.

• EBIT margin before special items decreased to 4.8% from 8.2% year-over-year.

• Cash flow from operating activities was positive at DKK 27 million, reflecting improved working capital from OCP prepayments.

• Net debt to EBITDA at 0.5, well below the target of 2.5.

Outlook and guidance

• Full-year 2025 guidance maintained: revenue growth of 30–40% and EBIT before special items of DKK 27–31 million.

• Achieving guidance requires significant H2 growth, supported by a strong order backlog and OCP project ramp-up.

• Guidance subject to higher uncertainty from geopolitical and market conditions in Europe, and timing of OCP deliveries.