AQ Group (AQ) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased 4% year-over-year to SEK 2,344 million, with organic growth at 0.3% and 8% from acquisitions, but below the 15% growth target.

• Operating profit (EBIT) for Q2 decreased 2% to SEK 218 million, while profit after tax reached a record SEK 189 million, up 4%.

• Cash flow from operating activities in Q2 was SEK 232 million, down from SEK 301 million, mainly due to increased accounts receivable.

• The company maintains a strong net cash position of SEK 219 million, supporting future growth and acquisitions.

• The group operates in 17 countries, serving over 4,000 customers across 15+ market segments.

Financial highlights

• Q2 2025 EBIT margin before tax was 9.7%; profit after financial items increased 5% to SEK 228 million.

• Earnings per share before dilution in Q2 was SEK 2.06, an all-time high.

• For H1 2025, net sales rose 3% to SEK 4,634 million, with EBIT down 3% to SEK 433 million and profit after tax down 3% to SEK 355 million.

• Cash flow from operations for H1 2025 was SEK 476 million; EPS before dilution was SEK 3.87.

• Ten-year EPS CAGR stands at 14%, with a target to double EPS every five years.

Outlook and guidance

• Organic growth is returning but remains below target; new customer ramp-ups expected in Q3.

• Growth target remains above 15% and EBT margin above 8%; acquired growth in Q2 reached 8%, surpassing the 5% target.

• Management expects sequential margin improvement as integration of recent acquisitions progresses.

• Q3 is traditionally the most difficult to forecast due to seasonal effects; no significant growth expected in trucks.

• Several acquisition targets are under negotiation, but pricing remains a challenge.