Troax Group (TROAX) Q2 2025 earnings summary

Executive summary

• Order intake declined by 6% year-over-year, with net sales down 4% and EBITA margin at 14.4% for Q2 2025, mainly due to weaker demand in Europe and Americas, while APAC remained stable or grew slightly in local currencies.

• Southern Europe and APAC showed growth, while Northern Europe and Americas declined, particularly in automotive and warehousing segments.

• Cost reduction and restructuring initiatives, including headcount reductions and Polish factory closure, incurred €6 million in one-off costs but are expected to yield €10 million in annual savings.

• Net result for Q2 was €1.4 million (down from €7.5 million), and for H1 was €6.7 million (down from €14.2 million) year-over-year.

• Gross margin remained stable at around 38–40% despite subdued demand.

Financial highlights

• Q2 2025 sales: €68.7 million (down 4% year-over-year); order intake: €65.3 million (down 6% year-over-year).

• Q2 EBITA: €9.9 million (14.4% margin, down from 16.8%); Q2 net profit: €1.4 million (down from €7.5 million).

• Adjusted EPS for Q2: €0.11 (down from €0.14); H1: €0.21 (down from €0.26).

• Free operating cash flow was €8.9 million, with a 90% cash conversion rate.

• Net debt at period end: €64.8 million; net debt/EBITDA ratio at 1.1, well below the target of 2.5.

Outlook and guidance

• Cost reduction and supply chain simplification expected to yield €10 million annual savings, with €5 million from headcount reduction in Q3 and €5 million from factory move in Q1 2026.

• Demand remains subdued, especially in construction, warehouse, and automotive, but feasibility study activity in storage in Europe is increasing, indicating potential improvement in 2026.

• Continued investments in North America to increase capacity and efficiency, with benefits expected from 2026.

• APAC expected to maintain growth momentum; Southern Europe shows continued strength at the start of Q3.