AFRY (AFRY) Q2 2025 earnings summary

Executive summary

• Ongoing strategy review and comprehensive restructuring, including a new Group structure effective July 1, 2025, aimed at improving efficiency and setting the foundation for profitable growth amid a cautious market environment.

• Order backlog increased both sequentially and year-over-year, driven by Infrastructure and Process Industries, reaching SEK 20.7 billion.

• Portfolio optimization and cost base assessment to continue over the next 12 months, with a focus on maintaining business momentum.

• Notable project wins in defense, nuclear decommissioning, and infrastructure, plus the acquisition of Reta Engenharia in Brazil to strengthen the mining and metals segment.

• Navigated a cautious market with macro uncertainty, weak calendar, and currency impacts on sales and profitability.

Financial highlights

• Q2 net sales of SEK 6,674 million, down 7.2% year-over-year, with adjusted organic growth at -2.5% after calendar effects.

• EBITA excluding items affecting comparability was SEK 438 million (6.6% margin), down from SEK 572 million (8.0%).

• SEK 91 million in restructuring costs reported in Q2, with further SEK 200–300 million expected over the next 12 months.

• Net debt to EBITDA (excl. IFRS 16) at 2.9x, expected to decrease to around or below 2.5x by year-end due to seasonality.

• Operating cash flow in Q2 was SEK 117–353 million, with available liquidity at SEK 3.8–4 billion.

Outlook and guidance

• Continued focus on cost base reduction, operational efficiency, and portfolio optimization over the next year.

• Restructuring efforts expected to yield an EBITDA run rate uplift equivalent to the restructuring costs, with a payback time of about one year.

• Updated strategy and growth plan to be presented at Capital Markets Day in November 2025.