Q2 2025: Continued cautious market climate

• Net sales decreased by -4.1 percent to SEK 758.0 million (790.8) of which organic growth for comparable units decreased by -7.4 percent (7.5)
• EBITA decreased to SEK 66.4 million (94.3) and the EBITA margin amounted to 8.8 percent (11.9)
• EBIT decreased to SEK 51.6 million (79.8)
• Cash flow from operating activities decreased to SEK -30.4 million (-3.0)

 
Period (January – June 2025)

• Net sales decreased by -3.4 percent to SEK 1,406.8 million (1,455.7) of which organic growth for comparable units decreased by -6.8 percent (0.4)
• EBITA decreased by -38.8 percent to SEK 91.8 million (150.0) and the EBITA margin amounted to 6.5 percent (10.3)
• EBIT decreased by -48.9 percent to SEK 62.0 million (121.3)
• Cash flow from operating activities increased to SEK 42.6 million (36.5)

 
Significant events after the balance sheet date

• Novedo calls for an extraordinary general meeting to decide on a directed new issue of convertible bonds

Per-Johan Dahlgren, President & CEO, comments on the first half of 2025:
The first half of 2025 was characterised by a challenging and cautious market climate due to geopolitical uncertainty and weaker economic growth. However, the trend varied among our companies, with differences depending on market, customer base and geographical presence.

Net sales for the first half of the year amounted to SEK 1,406.8 (1,455.7) million, a decrease of 3.4 percent compared with the corresponding period last year, mainly due to postponed tenders and project start-ups. EBITA for the first half of the year amounted to SEK 91.8 million (150) with a margin of 6.5 percent (10.3). The cautious market climate resulted in increased price pressure, which had a negative impact on earnings. For the rolling twelve months, EBITA amounted to SEK 246.6 million (286.0), corresponding to a margin of 8.3 percent (10.0). Ongoing work is being carried out in each company to manage costs and capacity. At the same time, the companies are ensuring long-term prospects and opportunities for growth in a stronger market in the future.

My assessment is that the market climate will remain challenging and cautious in 2025, with varying demand depending on the market, customer base and geography. Despite the market situation, we see several positive structural drivers going forward. Public investment, initiatives related to climate change, the need for infrastructure investment and growing demand for regional industrial production contribute to a brighter outlook. My assessment is that all of Novedo's business segments can benefit from these trends in the coming years. Our companies are well equipped to adapt to changing market conditions and are ready to take advantage of a gradually improving business climate.