W5 Solutions (W5) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased 14.3% year-over-year to SEK 111.1 million, with a strong order intake and a record order book, despite negative EBIT and net profit.

• Vision is to become a leading global provider of sustainable defense technology, focusing on Integration, Training, and Power business areas with 175 employees across Sweden, Norway, and Finland.

• Long-term financial goals target SEK 1 billion turnover and 10% profitability by 2027, aiming for 20% annual organic growth plus acquisitions.

• Major contracts secured in Q2 include SEK 25 million with Finnish Defence Forces, SEK 20 million and SEK 48 million with Swedish FMV, SEK 56 million with the UK, and SEK 57 million with KNDS Germany.

• A directed share issue post-period raised nearly SEK 104 million to support working capital and M&A activities.

Financial highlights

• Q2 2025 net sales: SEK 111.1 million (up from SEK 97.3 million in Q2 2024); H1 2025 net sales: SEK 195.6 million (up from SEK 190.6 million).

• Q2 order intake: SEK 358 million (up 211% year-over-year); order book at period end: SEK 597 million (up 170%).

• Book-to-bill ratio is above 3, indicating strong demand and growth.

• Q2 EBIT: SEK -8.0 million (Q2 2024: SEK -6.2 million); H1 EBIT: SEK -11.1 million (H1 2024: SEK -7.7 million).

• Q2 net profit: SEK -10.5 million (Q2 2024: SEK -4.7 million); H1 net profit: SEK -14.8 million (H1 2024: SEK -10.0 million).

Outlook and guidance

• Management maintains 2027 financial targets: SEK 1 billion in revenue and 10% EBIT margin.

• Focus for H2 2025 is on delivering on the strong order book and improving profitability.

• Market conditions remain favorable due to increased long-term defense spending commitments by NATO, EU, and Sweden.

• Facilities and personnel are well positioned to support 20% growth for the next year.

• Focus remains on top-line growth to address profitability challenges.