Drillcon (DRIL) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were 98 MSEK, a 15% decrease year-over-year, mainly due to a customer-initiated production stop and reduced vertical drilling in Scandinavia.

• Adjusted EBIT for Q2 was -1.8 MSEK, down from 12.1 MSEK in Q2 2024; reported EBIT was -5.5 MSEK.

• Several new contracts were secured, including a 100 MSEK raiseboring contract in Portugal and infrastructure projects in Sweden and Iceland.

• The company continues to focus on value-creating activities and selective project participation to maintain profitability.

Financial highlights

• Q2 EBITDA was 2.6 MSEK, down from 17.9 MSEK year-over-year; H1 EBITDA was 10.8 MSEK (28.0 MSEK in H1 2024).

• Net income after tax for Q2 was -4.7 MSEK (6.2 MSEK in Q2 2024); H1 net income was -6.4 MSEK (9.0 MSEK in H1 2024).

• Cash flow from operations in Q2 was 2.1 MSEK (18.4 MSEK in Q2 2024); H1 cash flow was 11.3 MSEK (12.6 MSEK in H1 2024).

• Rolling 12-month revenue was 400 MSEK with an EBIT margin of 2.4%.

• Result per share for Q2 was -0.10 SEK (0.14 SEK in Q2 2024).

Outlook and guidance

• Short-term demand and investment appetite are expected to remain unchanged.

• The company will continue to focus on cost adaptation, selective price adjustments, and efficiency improvements to reach its long-term EBIT margin target of 10%.

• Ongoing investments in technical capacity and process optimization aim to support a return to stable value growth and profitability.