Prevas (PREV) Q2 2025 earnings summary

Executive summary

• Q2 2025 net turnover grew 3.3% to SEK 408.8 million, driven by acquisitions, but profitability was impacted by SEK 6 million in restructuring costs, SEK 5 million calendar effect, and lower utilization in a challenging market.

• Adjusted EBITA/EBITDA margin for Q2 was 7.7% after excluding restructuring and calendar effects.

• Management is dissatisfied with current margins and is implementing actions to improve profitability, including restructuring, personnel optimization, and leadership changes.

• Finland showed a continued positive earnings trend, with margin improvement and increased efficiency from regional restructuring.

• Strategic focus on expanding in defense, energy, and cybersecurity sectors amid challenging market conditions.

Financial highlights

• Q2 2025 net turnover: SEK 408.8 million (up 3.3% year-over-year); EBITA: SEK 20.7 million (5.1% margin, down from SEK 36.2 million and 9.2% in Q2 2024).

• Adjusted EBITA for Q2: SEK 31.7 million (7.7% margin).

• H1 2025 net turnover: SEK 839.5 million (up 4.6%); EBITA: SEK 56.3 million (6.7% margin).

• Cash flow from operating activities in Q2: SEK 49.6 million (down from SEK 63.1 million); cash at quarter end: SEK 17 million.

• Net debt/EBITDA R12: 1.04x; equity ratio: 48.4%.

Outlook and guidance

• Management expects a continued challenging and uncertain market in Q3 and Q4 2025, with flat development anticipated.

• Actions to improve profitability and optimize workforce are expected to yield results in the second half of 2025.

• Continued focus on growth in defense, cybersecurity, and energy sectors.