Release Date: July 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Prevas AB (LTS:0H2J, Financial) achieved a 3.3% growth in Q2 2025, driven by acquisitions.
- Margins in Finland improved for the third consecutive quarter, indicating positive regional performance.
- The company has a strong balance sheet with a net debt to EBITDA ratio of 1.04 times and an equity ratio of 48.4%.
- There is a strong focus on sales, particularly in the defense and energy sectors, which are experiencing increasing demand.
- Prevas AB (LTS:0H2J) has a healthy order book moving into the second half of the year, supported by strong order intake in Q1 and Q2 2025.
Negative Points
- Profit for Q2 2025 was impacted by restructuring costs, a calendar effect, and lower utilization, resulting in unsatisfactory margins.
- Cash flow from operating activities decreased by SEK13 million or 21%, mainly due to lower results.
- The market remains challenging with high uncertainty driven by global political and geopolitical situations.
- There is high competition in general consulting services, particularly in IT and software areas.
- The company is not meeting its financial targets and is taking measures to improve profitability.
Q & A Highlights
Q: Has Enmac received any orders from Valmet related to their large order in Brazil?
A: Yes, we have received orders from Valmet, not only related to the big order we were talking about previously, but also other orders as well. - Magnus Welen, CEO
Q: What is the strategic rationale behind the acquisition of OIM Sweden? And are additional acquisitions planned in the near future?
A: The strategic rationale behind the acquisition of OIM is that it fits well into Prevas' strategy of working within product and production development. OIM's expertise in medtech and cleantech complements our existing capabilities, creating a strong development hub in the Malmö-Lund region. - Magnus Welen, CEO
Q: How do you plan to address the challenges in the software segment in certain regions? Are you reallocating resources or shifting strategic focus?
A: We are being agile by reallocating resources and adapting to new markets, such as defense, where software development is also utilized. Additionally, we have reduced personnel in areas with low demand to safeguard profitability. - Magnus Welen, CEO
Q: What share of revenue currently comes from defense, cybersecurity, and energy? And how fast are these segments growing?
A: For the first two quarters of 2025, 15% of turnover is from defense, which is growing. The energy sector accounts for 12% of turnover, also showing growth. We are expanding in cybersecurity, although specific figures are not disclosed. - Magnus Welen, CEO
Q: When do we see a trend break for profitability?
A: We are implementing several measures to improve efficiency and profitability. Although we are not currently meeting our financial targets, we are confident that we will achieve them over time. - Magnus Welen, CEO
Q: What do you think about the market in Q3 and Q4?
A: The challenging market is expected to continue, with flat development anticipated for the second half of 2025. We need to remain agile and work hard to find opportunities in the marketplace. - Helena Burstrom, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
