W5 Solutions (W5) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased 14.3% year-over-year to SEK 111.1 million, with a record order intake and order book, despite negative EBIT and net profit.

• Order intake surged 211% year-over-year in Q2 2025, driven by major export contracts in Finland, Sweden, the UK, and Germany.

• Strategic focus remains on sustainable organic growth and acquisitions, targeting SEK 1 billion in revenue and 10% EBIT margin by 2027.

• A directed share issue post-period raised SEK 104 million at a premium, supporting working capital, M&A, and project execution.

• Profitability remains a challenge, with a Q2 2025 EBIT margin of -7.2%.

Financial highlights

• Q2 2025 net sales: SEK 111.1 million (up from SEK 97.3 million in Q2 2024); H1 2025 net sales: SEK 195.6 million.

• Q2 2025 order intake: SEK 358 million (up 211% year-over-year); order book at period end: SEK 597 million (up 170%).

• Q2 EBIT: SEK -8.0 million (Q2 2024: SEK -6.2 million); H1 EBIT: SEK -11.1 million.

• Book-to-bill ratio above 3.0 in Q2 2025, indicating robust demand.

• Cash flow from operating activities in H1: SEK -27.9 million (improved from SEK -30.9 million in H1 2024).

Outlook and guidance

• Management maintains 2027 financial targets: SEK 1 billion in revenue and 10% EBIT margin.

• Positive market outlook supported by increased defense spending by NATO, EU, and Sweden.

• Focus for H2 2025 is on delivering the strong order book and improving profitability.

• Facilities and personnel are positioned to support 20% growth for the next year.

• Top-line growth remains a priority to address profitability challenges.