HEXPOL (HPOL) Q2 2025 earnings summary

Executive summary

• Q2 sales were 4,997 MSEK, down 8% year-over-year, with negative FX effects and weak North American demand offset by growth in Engineered Products and strong cash flow.

• EBIT was 756 MSEK, margin at 15.1%, both below last year; strong operating cash flow of 834 MSEK.

• Europe delivered stable sales, while Engineered Products achieved growth and strong profitability.

• Recent acquisitions (Kabkom, almaak, Piedmont) contributed to results and working capital.

• Focus remains on sustainability, M&A, and expanding thermoplastic and TB compounding product areas.

Financial highlights

• Q2 sales reached 4,997 MSEK, down 8% year-over-year; organic sales declined 6%, with acquisitions adding 4%.

• EBIT was 756 MSEK, margin at 15.1%, both below last year; negative FX impact of 50 MSEK.

• Earnings per share were 1.56 SEK, down from 1.90 SEK.

• Operating cash flow was strong at 834 MSEK, exceeding EBIT.

• Net debt stood at 4,473 MSEK, with a net debt/EBITDA ratio of 1.27, higher due to recent acquisitions.

Outlook and guidance

• High uncertainty expected to persist, especially in North America due to US tariffs and trade policy.

• Minimal direct impact from US tariffs in Europe; some direct and indirect effects anticipated in the US, mainly on raw material prices and demand.

• Organization is being strengthened to capture growth in thermoplastic and TB compounding.

• M&A pipeline remains strong, with readiness to act as market uncertainty eases.

• More details on growth plans to be shared at the November capital markets day.