Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bilia AB (LTS:0RQ2, Financial) reported a resilient result in turbulent times with higher order intake for new cars.
- The company maintained a solid financial position with positive cash flow.
- Demand for new cars in Norway and Western Europe is growing, with good booking times in workshops.
- The service business in Norway and Western Europe shows positive organic growth.
- Bilia AB (LTS:0RQ2) has successfully integrated new car brands such as XPENG, Polestar, and Lynk & Co into their workshops.
Negative Points
- Lower profitability was reported in Sweden related to used cars and the service business.
- The demand for electrical cars in Sweden is lower, affecting used car prices.
- The total car market in Sweden was almost 20% lower compared to the average market in the last 10 years.
- The service business in Sweden experienced weaker demand, especially in body and paint shops.
- Bilia AB (LTS:0RQ2) reported a lower operating cash flow compared to the previous year.
Q & A Highlights
Q: Can you provide an overview of the current market situation for new cars in Sweden and Norway?
A: In Sweden, there are signs of increased interest in new cars from private consumers, while in Norway, demand remains strong and relatively unaffected by economic turbulence. The fleet business in Sweden maintains a stable demand with a market share of around 60%. In Norway, the business climate is favorable, with growing demand for new cars and good booking times in workshops. (Per Avander, CEO)
Q: How did Bilia's financial performance in Q2 2025 compare to the previous year?
A: Bilia reported a net turnover in line with the previous year, with a result of SEK348 million and a margin of 3.3%. Although this is lower than last year, it is considered resilient given the tough economic conditions. The company saw improved earnings in the new car business but lower earnings in used cars and the service business. (Per Avander, CEO)
Q: What actions is Bilia taking to address the lower demand in the service business in Sweden?
A: Bilia is accelerating efforts towards the older car segment and including new car brands such as XPENG, Polestar, and Lynk & Co in existing workshops. The company is also focusing on enhancing profitability and operational efficiency. (Per Avander, CEO)
Q: Can you elaborate on Bilia's financial position and recent transactions?
A: Bilia maintained a stable cash flow, generating an operating cash flow just below SEK200 million. The company made the first dividend payment of SEK5.60 per share and received SEK250 million from the divestment of its Trucks Business for Mercedes-Benz. Bilia has entered a new relationship with Volvo Lastvagnar and acquired two companies for Volvo Trucks sales and services. (Karin Franzen, CFO)
Q: What is the outlook for Bilia's car and service businesses in the coming quarters?
A: Bilia expects stable demand for hybrid and fossil fuel cars, with continued price pressure on used electric cars. The company anticipates a pickup in new car demand in Q3, driven by pent-up demand and ongoing campaigns. The service business demand is expected to remain stable, with a focus on efficiency and profitability. (Carl Fredrik Ewetz, IR Contact Officer)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
