Coor Service Management (COOR) Q2 2025 earnings summary

Executive summary

• Organic growth reached 3% in Q2, with margin improvement to 5.2% and strong momentum in Norway.

• Major contract extensions and new wins, including Volvo Cars, Region Gävleborg, and Statkraft, supported a stable contract portfolio.

• Organizational restructuring and central staff reorganization completed, yielding SEK 120 million in annual cost savings and normalized HQ costs.

• Capital Markets Day planned for early next year to update on growth strategy and market focus.

• Contract portfolio remains stable, with 60% in small and medium contracts and limited near-term expirations.

Financial highlights

• Q2 net sales were SEK 3,199 million, up 0.6% year-over-year; organic growth was 3%, offset by FX impact.

• Adjusted EBITDA/EBITA for Q2 was SEK 165 million (margin 5.2%), up from SEK 161 million year-over-year.

• Net income for Q2 was SEK 65 million; adjusted net income was SEK 80 million.

• Full-year net sales reached SEK 12.4 billion, with adjusted EBITDA of SEK 534 million (margin 4.3%).

• Cash conversion improved to 88% LTM, up from 57% FY 2024 and 81% in the previous quarter.

Outlook and guidance

• Management remains optimistic, citing a stable, high-activity market and ongoing focus on operational efficiency and profitability.

• Capital Markets Day planned for early next year to update on strategic progress.

• Lower variable volumes in Sweden and Denmark may persist into H2, with some uncertainty due to economic environment.

• Restructuring costs are expected to decrease as organizational changes are now complete.

• Mid- to long-term organic net sales growth target remains at 4-5% over a business cycle.