Humana (HUM) Q2 2025 earnings summary

Executive summary

• Underlying profitability improved in Sweden and Norway, with SEK 17m increase and strong performance in targeted growth areas; SEK 100m in new contracts signed to expand the pipeline.

• Transition in Finland continues, with measures expected to improve profit in H2 2025; ongoing restructuring and focus on disability and child welfare services.

• New financing agreement reduces annual financial costs by SEK 35m, supporting cost reduction and efficiency programs.

• Strong cash flow, net debt reduction, and share buybacks executed, reflecting robust capital management.

• Net revenue for Q2 2025 was SEK 2,506m, down 1% year-over-year; six-month revenue rose 2% to SEK 5,039m.

Financial highlights

• Last 12 months' revenue grew 7% year-over-year, mainly from the Team Olivia Norway acquisition; net revenue LTM reached SEK 10,392m.

• Adjusted EBIT for the last 12 months was SEK 496m, with individual and family as the largest contributor.

• Free cash flow LTM (excluding IFRS 16) at SEK 519m; net debt decreased to SEK 1,295m at quarter end.

• Organic growth LTM at 4.6%; Q2 organic growth was -1.5%.

• Net debt/rolling 12-month adjusted EBITDA (excl. lease liabilities) improved to 2.7x from 3.8x.

Outlook and guidance

• Significant improvements expected in Finland in Q3 versus Q2, though not yet at prior year levels; streamlining measures underway.

• Cost reduction programs and refinancing expected to deliver SEK 100m in annual savings once fully implemented.

• Focus on organic growth, filling capacity, and expanding in high-margin segments, leveraging digitalization and AI.

• Growth projects totaling SEK 100m in prioritized areas signed, with new units planned in Sweden and Finland.