Second quarter 2025

• Order intake was unchanged and amounted to SEK 8,290 million (8,296). Comparable units were also unchanged.
• Net sales decreased by 4% to SEK 8,121 million (8,491). Comparable units showed a decline of 4%.
• EBITA decreased by 11% to SEK 1,115 million (1,253), corresponding to an EBITA margin of 13.7% (14.8%).
• Profit for the quarter decreased by 12% to SEK 639 million (730) and earnings per share amounted to SEK 1.75 (2.00).
• Cash flow from operating activities amounted to SEK 735 million (1,029).

CEO’s message

Second quarter
In the second quarter of 2025, despite fewer working days and a generally uncertain global situation, order intake was organically in line with the corresponding period of the previous year. Order intake amounted to SEK 8.3 billion (8.3). Around half of all the companies had organic order growth, and order intake was 2% higher than net sales. Among the larger customer segments, demand was strong for many companies with customers in the energy segment, and was generally high and stable in medical technology and pharmaceuticals. There was still considerable variation in demand between companies, with more subdued demand from customers in infrastructure and construction, engineering and the process industry. Organic order intake development was strongest in the Technology & Systems Solutions business area, while it was weakest in Industrial & Engineering.

Net sales for the quarter decreased from the previous year’s strong levels and amounted to SEK 8.1 billion (8.5), corresponding to a decline of 4% in organic sales. This is primarily attributable to a lower order backlog at the beginning of the quarter, strong comparative figures for many companies, and fewer working days. In all business areas, organic net sales decreased during the quarter.

The organic sales trend affected profitability and the EBITA margin amounted to 13.7% (14.8%). The gross margin remained stable at a high level, and organic expense levels were in line with the previous year. Compared to the first quarter of 2025, expense levels decreased slightly. The EBITA margin was lower in all business areas compared to the corresponding period of the previous year, although it improved in four out of five business areas compared to the first quarter of 2025.

Working capital for comparable units was lower than in the corresponding period of the previous year, and inventories continued to decrease sequentially. However, cash flow from operating activities weakened in the quarter and amounted to SEK 735 million (1,029), driven by lower earnings and less favourable changes in working capital. The debt/equity ratio is still low, and the Group’s financial position remains very strong.

Acquisitions
To date this year, Indutrade has welcomed four new companies with combined annual sales totalling around SEK 425 million. At the beginning of the quarter, we acquired the Swedish company Ideus, which offers customised metal components for the Swedish engineering sector, and we also completed the acquisition of the Irish company IPP. Since the end of the quarter, we have welcomed Utodas from the Netherlands, which offers remote level monitoring solutions for dry and liquid bulk goods.

The inflow of interesting acquisition candidates remains strong. However, due to the uncertain global situation, we have chosen to prolong some acquisition processes. Activity levels in ongoing acquisition processes are high which, in combination with our strong financial position, means that we are well-placed for a good acquisition pace during the remainder of the year.

Outlook
Demand was generally slightly better during the first six months compared to the corresponding period in the previous year, despite an uncertain macroeconomic situation. We have had a positive book-to-bill ratio for two consecutive quarters, but there remains considerable general uncertainty surrounding upcoming quarters, and the order backlog is somewhat weaker than in the previous year. Many of our companies continue, therefore, to actively work to adapt costs to the situation prevailing in their markets.

In the long term, we are very optimistic about our ability to create continued, sustainable profitable growth. There is considerable potential for structural growth in many of our industries, such as medical technology and pharmaceuticals, infrastructure and the energy sector. Our business areas, business segments and entrepreneurial companies are well-equipped to drive growth, both organically and through acquisitions.

Bo Annvik, President and CEO

For further information, please contact:
Bo Annvik, President and CEO, tel. +46 (0)8 703 03 00,
Patrik Johnson, CFO, tel. +46 (0)70 397 50 30.

This report will be commented upon as follows:
A webcast of the report will be presented on 15 July at 09:30 CEST via the following link:
https://indutrade.events.inderes.com/q2-report-2025

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