Q2 2025 Afry AB Earnings Call Transcript
Key Points
- Afry AB (FRA:B3Y1) successfully implemented a new group structure aimed at improving efficiency and setting the foundation for profitable growth.
- The company reported a strong order backlog, which increased both sequentially and year over year, indicating a competitive market position.
- The Energy division continued to perform well, with high demand across segments and a strong position in the Nuclear sector.
- Afry AB secured significant project wins, including a framework agreement with BAE Systems Hägglunds and a contract with the Norwegian Nuclear Decommissioning Agency.
- The acquisition of Reta Engenharia in Brazil is expected to strengthen Afry's operations in the Americas and unlock new growth opportunities.
- Net sales declined by 7.2% compared to the previous year, impacted by a weak calendar and significant currency effects.
- The EBITA margin was affected by negative calendar effects and currency impacts, with a reported margin of 6.6%.
- The Pulp and Paper segment continued to face challenges with low demand for new investment projects.
- The Real Estate sector remained weak, contributing to overall market uncertainty.
- Restructuring costs of SEK91 million were reported, with further costs of SEK200 million to SEK300 million expected over the next 12 months.
Good morning and warm welcome. My name is Linda Palsson, I'm the CEO of Afry, and I will present our Q2 results together with our CFO, Bo Sandström. Starting off with the summary of the second quarter, our work with the ongoing strategy review progressed according to plan.
Our efforts during the quarter focused on implementing our new group structure, which has included a comprehensive restructuring of the organization as we are taking steps now to improve efficiency. We will continue to our work on optimizing the portfolio and addressing our cost base in the coming 12 months, which we will come back to a bit later in this presentation.
At the same time as we are laying the foundation for profitable growth, we are navigating a challenging market, we see that market remains cautious due to the current uncertainty in the global economic environment.
And while the pattern varies across segments and regions, this uncertainty is broadly affecting client decisions and investments. We also had a weak calendar Q2, and
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