Alligo (ALLIGO) Q2 2025 earnings summary

Executive summary

• Revenue grew by 1.6% year-over-year in Q2 2025 to MSEK 2,470, driven by acquisitions offsetting negative organic growth of -4.3% amid challenging market conditions.

• Adjusted EBITA declined by 13.2% to MSEK 144 (5.8% margin), mainly due to lower volumes, margin pressure, and negative country mix, especially in Norway.

• Integration of Swedol and Tools is complete, providing a scalable Nordic platform for future growth.

• Cost-saving initiatives and efficiency programs are underway, with SEK 100 million in annual savings expected from mid-year.

• SBTI validated climate targets for emission reductions and net zero by 2050.

Financial highlights

• Q2 revenue: MSEK 2,470 (+1.6% year-over-year); H1 revenue: MSEK 4,702 (+2.2%).

• Adjusted EBITA: MSEK 144 in Q2 (down from MSEK 166); H1 adjusted EBITA: MSEK 218 (down from MSEK 250).

• Gross margin: 40.1% in Q2 (40.3% prior year); H1 gross margin: 40.5% (40.7%).

• Operating cash flow dropped to MSEK 150 in Q2 (MSEK 270 year-over-year), impacted by lower EBITDA and inventory build-up.

• Net debt/EBITDA at 3.2x, reflecting higher acquisition activity and lower cash flow.

Outlook and guidance

• Market remains weak but stable, with cautious customer sentiment and some positive signals in Sweden.

• Cost base improvements and efficiency gains are expected to support profitability in the second half of 2025.

• Management expects to benefit from efficiency measures and platform scalability when sales volumes recover.

• Currency tailwinds from a stronger SEK are anticipated to benefit gross margin in Q3 and Q4.

• Sales remain the top strategic priority for 2025.