Seamless Distribution Systems (SDS) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 declined 25.4% year-over-year to 44.9 MSEK; EBITDA dropped to -2.8 MSEK from 19.7 MSEK.

• Net loss after tax widened to -49.4 MSEK in Q2; EPS at -2.60 SEK.

• Major restructuring, cost-saving initiatives, and leadership changes implemented to restore profitability.

• Significant one-time write-downs of intangible assets and negative currency effects impacted results.

Financial highlights

• H1 2025 revenue fell 12.7% year-over-year to 101.2 MSEK; EBITDA for H1 at 8.5 MSEK, down 79.7%.

• Q2 EBITDA margin at -6.2% (vs. 32.8% prior year); H1 EBITDA margin at 8.4% (vs. 36.1%).

• Q2 EBIT at -42.7 MSEK, impacted by 30.0 MSEK in asset write-downs and 7.9 MSEK in currency losses.

• Cash flow for Q2 at -7.8 MSEK; H1 cash flow at 0.5 MSEK.

• Liquidity at period end: 3.8 MSEK, below covenant requirements.

Outlook and guidance

• Cost savings of 60 MSEK targeted, with 44 MSEK already achieved; full effect expected from January 2026.

• New business expected to close in H2 2025 after Q2 delays due to sales reorganization.

• Recurring revenues aimed to cover all operating costs and interest by 2026.