Release Date: July 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VBG Group AB (LTS:0GXK, Financial) maintained a stable gross margin of 32% despite a decline in sales volume.
- The company completed two strategic acquisitions: Ledson, a specialist in vehicle lighting, and Malmedie, a leader in coupling technology for industrial applications.
- Sales for the truck and trailer equipment division increased by 2.4% compared to the previous year, with a strong EBITDA margin of 16.9%.
- The company received SEK13.4 million in retroactive pandemic support in the US, positively impacting EBITDA.
- VBG Group AB (LTS:0GXK) is optimistic about growth in the second half of 2025, driven by a strong order intake and contributions from recent acquisitions.
Negative Points
- Revenue declined by 9% compared to Q2 2024, largely due to currency fluctuations and the strengthening of the Swedish crown.
- EBITDA margin decreased to 13.1% from 14.5% in the same quarter of the previous year.
- The mobile thermal solutions segment faced lower sales volumes due to reduced demand in the off-road vehicle and public transport bus segments.
- Operative cash flow decreased significantly to SEK83.7 million from SEK204.9 million in Q2 2024, mainly due to higher working capital tied up.
- Earnings per share dropped to SEK4 from SEK6.71 in the previous year, reflecting lower profitability.
Q & A Highlights
Q: Can you explain the margin development for Ringfeder Power Transmission in Q2 compared to Q1? Is it driven by project-related sales or other factors?
A: The margin differences are primarily due to project-related sales, which can significantly impact product mix effects. However, we maintain stable gross margins and expect good capacity utilization in the second half of the year. - Anders Erken, CEO
Q: Are the orders for H2 showing a stable product mix?
A: Yes, we anticipate a fairly stable product mix between Q3 and Q4, with consistent order intake. - Anders Erken, CEO
Q: Regarding the recent acquisition of Malmedie, are there any tangible synergies you can highlight?
A: We will initially operate Malmedie as a standalone company. While we foresee synergies, particularly in cross-selling, these will be more evident in the mid-term rather than in 2025. - Anders Erken, CEO
Q: How is the compact segment within Mobile Thermal Solutions performing, especially in the off-road market?
A: The compact segment showed improvement in the latter part of Q2, with strong order intake. This is driven by the completion of destocking in North America and improved take rates. - Anders Erken, CEO
Q: How is the school bus segment performing within Mobile Thermal Solutions?
A: The school bus segment is performing well, with strong order books for the second half of the year. There is ongoing discussion about electrification, but we expect good momentum throughout 2025. - Anders Erken, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
