Scandic Hotels (SHOT) Q2 2025 earnings summary

Executive summary

• Delivered organic growth of 2% in Q2 2025, with SEK 5.8 billion in net sales and strong cash flow, despite currency and calendar headwinds.

• Announced intention to acquire Dalata Hotel Group's operations for EUR 500 million, expanding into Ireland and the U.K. and expected to be EPS accretive.

• Maintained focus on profitable growth, disciplined capital allocation, and commitment to the 2030 strategy.

• High activity in portfolio and commercial development, including new hotel openings and signings.

Financial highlights

• Adjusted EBITDA for Q2 was SEK 723 million (margin 12.5%), down from SEK 841 million last year, mainly due to calendar and currency effects and absence of one-off gains.

• Q2 net sales: SEK 5,795 million (-1.3% YoY); organic growth of 2.0% year-over-year.

• Strong operational cash flow of SEK 2.3 billion (LTM) and free cash flow of SEK 710 million in Q2, up from SEK 463 million last year.

• Net debt reduced to SEK 660 million from SEK 1,658 million, leverage at 0.3x.

• Currency effects negatively impacted EBITDA by SEK 22 million and top line by SEK 193 million.

Outlook and guidance

• Bookings for Q3 are strong, with expectations for higher occupancy and room rates than last year.

• Continued robust cash flow and investment pace, with renovation CapEx expected at 3.5–4% of net sales for the year.

• The Dalata acquisition is expected to be EPS accretive and create long-term value, with leverage temporarily above target but not exceeding 2x EBITDA.

• Company remains committed to 2030 strategy and 2025-2027 financial targets.