Release Date: July 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Balco Group AB (FRA:B9C, Financial) reported the highest historical order intake for the quarter, amounting to SEK519 million, a 37% increase from the previous year.
- The company secured a significant order worth SEK80 million from the French shipyard Chantiers de l'Atlantique, marking its first order in France and introducing doors to its Maritime segment.
- Order intake in Norway reached NOK180 million, contributing to the overall growth in the quarter.
- The Swedish balcony companies saw a 47% increase in order intake during the quarter.
- The order backlog increased by 4% to SEK1.439 billion, indicating a strong pipeline of future projects.
Negative Points
- Net sales decreased by 12% to SEK338 million, impacted by a 5% negative currency effect.
- Profitability was not satisfactory due to project start-up delays, affecting sales, cash flow, and earnings.
- The adjusted operating result on EBITA level dropped to SEK6 million from SEK19 million last year, with an adjusted EBITA margin of 1.9%.
- Operating cash flow was negative at minus SEK30 million, compared to plus SEK48 million last year.
- The equity to asset ratio decreased to 45% from 47% last year, and interest-bearing net debt in relation to adjusted EBITDA increased to 7.6 from 3.3 last year.
Q & A Highlights
Q: Is it possible to say anything on the expected margin of your order intake?
A: The margins on the order intake are within expected levels across the Swedish, Maritime, and Norwegian markets. - Camilla Ekdahl, CEO
Q: Should we expect a similar margin for the maritime order as the normalized Balco Group margin?
A: The maritime segment's margins are comparable to the standard Balco Group margin, with recent orders achieving very good margins. - Michael Grindborn, CFO
Q: What are your expectations for the Maritime segment going forward?
A: We have received more requests for quotations and are actively working on them within the Maritime segment. - Camilla Ekdahl, CEO
Q: Are project start delays affecting profitability mainly in Sweden, or are other countries impacted as well?
A: Delays are occurring in multiple markets, including Sweden, Norway, Denmark, Finland, and the UK. We expect improvements by the fourth quarter of this year. - Michael Grindborn, CFO
Q: What is the main reason for these project start delays?
A: Delays in the new build segment are due to builders, while renovation delays are linked to building permissions and discussions, particularly in Sweden. - Camilla Ekdahl, CEO
Q: Can you implement more cost measures in the second half of 2025 or into 2026?
A: We are still working on cost factors, but increasing sales and revenue is crucial for improving profitability. - Camilla Ekdahl, CEO
Q: Is there a different customer behavior in the Danish market compared to other Nordic countries?
A: Yes, the Danish market primarily involves adding new balconies to old buildings, which leads to longer decision processes compared to replacing existing balconies in other markets. - Camilla Ekdahl, CEO
Q: What should we expect regarding working capital development in the coming quarter?
A: We anticipate improvements, especially in the fourth quarter, with slight improvements expected in the third quarter. - Michael Grindborn, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
