Nordrest (NREST) Q2 2025 earnings summary

Executive summary

• Achieved record net sales for the second quarter, with 615 MSEK, up 29.6% year-over-year, and strengthened profitability across all customer segments.

• Strategic expansion into Finland through the acquisition of Garam & Vermiglio Catering OY and 40% of Orifo ApS in Denmark, enhancing the MRE business and supply chain integration.

• All customer segments reported increased net sales, with especially strong growth in Defense (+58%) and Corporate/Companies (+29.4%).

• Extended contract with the Swedish Armed Forces until March 2028, with an option for an additional year.

• EPS before dilution for the quarter was 3.44 SEK (up from 2.78 SEK); for the period, 6.14 SEK (up from 5.63 SEK).

Financial highlights

• Q2 net sales reached SEK 615 million, up 29.6% year-over-year, with organic growth of 21.9%.

• EBITA for the quarter was SEK 67 million, with an EBITA margin of 11.0% (up from 8.9% last year).

• For the period, net sales were SEK 1,149 million, up 19.7% year-over-year, with organic growth of 14.7%.

• EBITA for the period was SEK 117 million, with a margin of 10.2% (up from 8.4%).

• Cash flow from operations after working capital changes was 76 MSEK for the quarter and 139 MSEK for the period.

Outlook and guidance

• Medium-term targets: organic growth above 10%, EBITA margin of 8–10%, dividend payout over 50% of net profit, and net debt/EBITDA below 2.0x.

• Continued focus on organic growth and integration of recent acquisitions to drive future performance.

• Capital structure and low leverage (-0.6x net debt/EBITDA) support continued organic and acquisition-driven expansion.

• Defense contract extended to March 2028, with an option for an additional year.