Lifco (LIFCO) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales increased by 3.2% to SEK 6,943 million, with organic growth of 0.5%, 7.2% from acquisitions, and a -4.4% FX impact; H1 net sales up 9.0% to SEK 13,875 million, with 4.1% organic growth.

• Q2 EBITA declined 2.8% to SEK 1,562 million, with margin dropping from 23.9% to 22.5%; H1 EBITA up 5.9% to SEK 3,057 million, margin at 22.0%.

• Net profit for Q2 was SEK 880 million, down 3.8%; H1 net profit up 6.7% to SEK 1,723 million; EPS for H1 rose 7.1% to SEK 3.75.

• Cash flow from operations in Q2 decreased 8.5% to SEK 971 million, mainly due to lower EBITDA and working capital buildup in contract manufacturing.

• Seven to nine acquisitions consolidated YTD, adding SEK 800 million to over SEK 1 billion in annual sales, focused on high-margin niche companies.

Financial highlights

• EBITA margin for Q2 was 22.5%, down from 23.9% year-over-year; H1 margin at 22.0%.

• Return on capital employed for the period was 20.6%; equity/assets ratio at 45.1%.

• Net debt as of June 30, 2025, was SEK 12,835 million; net debt/EBITDA at 1.9x, interest-bearing net debt/EBITDA at 1.3x.

• Free cash flow per share has grown at a CAGR of 20.4% since IPO.

• Cash flow conversion remains high due to asset-light operations.

Outlook and guidance

• Stabilization and some growth seen in construction-exposed businesses after difficult years.

• No major market recovery forecasted; cautious on future demand, especially in system solutions.

• Inventory and working capital expected to improve if deliveries stabilize in H2.

• Financial position supports further acquisitions; net debt/EBITDA well below target maximum of 3x.

• Financial targets include organic EBITA growth above GDP in relevant geographies and net debt/EBITDA in the 2-3x range.