NOTE (NOTE) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached SEK 980 million, with a SEK 35 million negative currency effect and a 3% year-over-year decrease, but profitability remained strong at a 9.6% underlying margin and 10.3% operating margin.

• Earnings per share increased 7% year-over-year to SEK 2.65; net debt at SEK 117 million after dividend payout, with a robust cash position of SEK 634 million.

• Order backlog increased 6% sequentially but is down 1% year-over-year, indicating improving customer sentiment amid cautious order placement.

• Delivery performance and quality have returned to pre-component crisis levels, exceeding demanding automotive industry standards.

• Dividend of SEK 7 per share (SEK 199.4 million) was approved and paid in Q2, reflecting high profitability and strong cash flows.

Financial highlights

• Year-to-date sales were SEK 1,983 million, down 4% year-over-year; Q2 operating profit was SEK 101 million (10.3% margin), up 2% from last year.

• Operational cash flow year-to-date was SEK 260 million, with SEK 214 million after investments, exceeding dividend payouts.

• Equity ratio stands at approximately 49%, and cash flow continues to outpace profit after tax.

• Q2 profit after tax was SEK 76 million, or SEK 2.65 per share; H1 profit after tax was SEK 141 million, or SEK 4.93 per share.

• Q2 gross margin was 13.4%; H1 gross margin was 13.3%.

Outlook and guidance

• Full-year 2025 sales guidance narrowed to SEK 3.9–4.1 billion, with local currency sales expected to grow 8-9%.

• Operating margin for the full year is expected in the 9.5–10.5% range; Q3 may be seasonally weak, with improvement anticipated in H2.

• Second half of the year guided for 5-10% growth, supported by a 6% order backlog increase.

• Security & Defence and Greentech segments expected to continue strong growth; industrial and communication segments to recover in H2.

• At least one acquisition expected to close in 2025, with improved M&A market conditions.