Arla Plast (ARPL) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were 396.4 MSEK, flat year-over-year, with positive impact from the Nudec S.A.U. acquisition and favorable product mix, but offset by lower demand and increased price competition.

• Operating profit rose 53% to 39.6 MSEK, with improved margins and lower non-recurring costs.

• Cash flow and net cash position improved significantly, supported by higher operating profit and working capital management.

• The Spanish segment contributed positively, offsetting volume declines elsewhere.

Financial highlights

• Q2 2025 net sales: 396.4 MSEK (0% change); rolling 12 months up 10%.

• Q2 operating profit: 39.6 MSEK (+53%); operating margin: 10.0%.

• Q2 net income: 31.3 MSEK (+90%).

• Non-recurring costs reduced to -1.0 MSEK from -9.0 MSEK.

• Net cash position at quarter-end: 40.8 MSEK (vs. net debt of 65.2 MSEK prior year).

Outlook and guidance

• Gross and operating margins expected to remain improved, supported by Spain segment and product mix.

• Product and customer portfolio diversification remains a key focus.

• Raw material prices continue a modest downward trend, but future outlook remains uncertain.

• US tariffs are not expected to materially impact the business.

• Continued investment in production modernization in Sweden and Czechia.