Q2 2025 Alfa Laval AB Earnings Call Transcript
Key Points
- Alfa Laval AB (ALFVY) reported an all-time high adjusted earnings of just above SEK3 billion, with a 19% increase in EPS to SEK4.87.
- The company experienced strong demand growth in many end markets, with record levels in the service business and transactional parts.
- The Marine division executed well, achieving a margin of 24%, and the order book remains solid for 2025 and into 2026.
- The Food and Water division saw firm demand in markets like dairy and pharma, with distribution and short-cycle businesses reaching new highs.
- The acquisition of a cryogenic business in France is expected to contribute EUR200 million to EUR250 million in annual order intake with a slight accretive margin.
- The Energy division faced a weak service quarter due to changes and investments in warehousing and software solutions.
- Large projects in the Energy division were slow to convert to orders, impacting clean energy applications.
- The margin in the Energy division was lower than last year, affected by a slower service business and cost structure.
- The Marine division experienced a normalization of cargo pumping demand, which was lower compared to the previous year.
- Currency fluctuations had a negative impact on the financial results, with a 6% negative translational impact on invoice values.
Good morning, and welcome to Alfa Laval's second quarter earnings call. Fredrik and I, we will run through the financials with you, and then obviously, we continue with the Q&A session. So with that, let me go straight to the financial.
Financially, it was a strong quarter with an all-time high of adjusted earnings of just above SEK3 billion and the 19% increase of the EPS to a new record level of SEK4.87. We had strong demand growth in many end markets with an all-time high in the rolling 12-month service business and new record levels in the transactional part of the business as a whole.
This partly compensated for the anticipated normalization of demand for cargo pumping systems in the quarter compared to last year. The conversion of the record high order book was well executed in the quarter, especially in the Marine division with a margin of 24%.
Finally, we feel we have a solid order book for 2025 and well into 2026, still above SEK50 billion as we speak. Together with a good pace in the short cyclical
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