Vestum (VESTUM) Q2 2025 earnings summary

Executive summary

• Organic growth reached 4% in Q2 2025, with cash flow and profitability stable despite a 7% net sales decrease from divestments and currency effects.

• Free cash flow increased by over SEK 50 million in Q2, with cash conversion at 82%.

• One acquisition completed (Nortech), with investments in production capacity and leverage rising to 2.65x EBITDA.

• Divestments in the Solutions segment, including major companies, led to lower sales and a capital loss.

• Focus remains on growth investments and strengthening market position, especially in the UK.

Financial highlights

• Q2 2025 net sales: SEK 1,012 million, down 7% year-over-year due to divestments, partially offset by acquisitions.

• Adjusted EBITA margin was 10.1%, in line with last year.

• Organic growth was 4%, up from 3% in Q1.

• LTM free cash flow reached SEK 120 million, a significant increase from Q1.

• Cash flow from operating activities: SEK 79 million in Q2.

Outlook and guidance

• Flow Technology segment expected to benefit from UK water infrastructure investments (AMP8) in coming years, with a solid M&A pipeline.

• Short-term caution in the UK market due to AMP8 ramp-up and resource planning, but positive effects anticipated in late 2025.

• Profitability in Solutions segment expected to improve as Swedish construction recovers.

• Additional UK-based acquisitions planned before year-end.

• Midterm market outlook remains positive despite short-term uncertainties.