Nolato (NOLA) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached SEK 2,395 million, with 4% organic growth adjusted for currency and both Medical and Engineered Solutions contributing to margin improvements.

• EBITA margin rose to 11.6% from 10.0% year-over-year, and operating profit increased 13% to SEK 277 million.

• Medical Solutions led growth, now 56% of group revenues, with 5% sales growth adjusted for currency.

• Strategic price and cost adjustments, plus supply chain focus, drove margin improvements.

• Investments underway for expansion in Hungary, Poland, and new operations in Malaysia.

Financial highlights

• Profit after tax was SEK 212 million, up from SEK 169 million year-over-year; EPS increased to SEK 0.79 from SEK 0.63.

• Return on capital employed improved to 13.4% from 9.9% year-over-year.

• Cash flow after investments was SEK 128 million in Q2, down from SEK 336 million, mainly due to high CapEx.

• Equity/assets ratio at 57%, up from 54% in Q2 2024.

• Net financial liabilities/EBITDA at 0.7x after dividend payout.

Outlook and guidance

• Positive outlook for 2025, supported by strong financial position and global presence.

• Effective tax rate expected to be around 20% for the full year.

• Net investments projected at SEK 850 million for the full year, with high CapEx continuing into 2025 and above-average levels in 2026.

• Confident in reaching the midterm EBITDA margin target of 12%, though future margin progression may slow.

• Expansion in Asia and Poland, with new operations in Malaysia supporting future growth.