Karnell Group (KARNEL) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong performance with net sales up 20.7% year-over-year to SEK 431 million and EBITA/EBITDA up 54.4% to SEK 63 million, driven by both organic and acquired growth.

• Two UK acquisitions (Warwick SASCO and LundHalsey) expanded the group’s portfolio and sector reach, strengthening the product company segment.

• The group now comprises 18 companies across Finland, Sweden, and the UK, employing about 700 people.

• Maintained low leverage and robust cash flows, positioning for continued execution of the growth strategy.

• Niche production drove organic growth and margin improvement, while product companies saw mixed organic performance but remained profitable.

Financial highlights

• Net sales rose 20.7% year-over-year to SEK 431 million, with organic growth of 1.4%.

• EBITA/EBITDA increased 54.4% to SEK 63 million, with a margin of 14.6% versus 11.4% last year and 17% organic growth.

• Cash flow from operating activities for Q2 was SEK 20 million, down from SEK 30.5 million last year, mainly due to higher working capital.

• Net profit after tax for Q2 was SEK 36.8 million, up 132% year-over-year.

• Earnings per share and return on capital employed both increased versus last year.

Outlook and guidance

• Entering H2 2025 with confidence, supported by a strong balance sheet, robust M&A pipeline, and early signs of market stabilization and easing interest rates.

• Decentralized operating model and recent acquisitions expected to drive long-term value.

• Q3 2024 was a strong comparison period, making year-over-year growth challenging.