Careium (CARE) Q2 2025 earnings summary

Executive summary

• Q2 2025 was challenging, with net sales down 11.9% year-over-year to SEK 202.1 million, mainly due to financial lease accounting and lower product sales, but gross margin improved to 43.3% from 41.7%.

• Operating profit (EBIT) fell to SEK 10.0 million (margin 4.9%) from SEK 21.8 million last year.

• Cash flow from operations increased to SEK 20.2 million, with cash at period end SEK 34.1 million and net debt SEK 178.3 million.

• Major breakthroughs included a first stationary alarm order in France and a five-year fully managed contract win in the UK.

• Digital and web infrastructure was overhauled to support B2C growth, with momentum improving late in the quarter.

Financial highlights

• Q2 net sales: SEK 202.1 million (down 11.9% year-over-year); service sales fell 9.4% to SEK 147.9 million; product sales dropped 18% to SEK 54.2 million.

• Gross margin Q2: 43.3% (up from 41.7%); EBITDA: SEK 26.4 million (margin 13%); EBIT: SEK 10.0 million (margin 4.9%).

• Q2 profit for the period: SEK 6.5 million (down 53.6%); Q2 EPS: SEK 0.23 (down 56.8%).

• Cash flow from operations: SEK 20.2 million; free cash flow: SEK 1.0 million; cash at period end: SEK 34.1 million.

• Net debt: SEK 178.3 million; leverage ratio: 1.3x; equity ratio: 64.7%.

Outlook and guidance

• Guidance for 2025 is unchanged: net sales, profitability, and free cash flow before acquisitions expected to increase versus 2024.

• Key drivers for H2 include a large contract in Norway starting in October and the Gloucestershire contract in the UK starting in Q3.

• Negative impact from financial lease accounting in Sweden expected to decrease significantly from early 2026.

• Management remains confident in the tender pipeline and win rates, especially in Sweden.

• Focus remains on B2B, tendered opportunities, and M&A pipeline review.