Q2 2026 Boreo Oyj Earnings Call Transcript
Key Points
- Boreo Oyj (OHEL:BOREO) reported its seventh consecutive quarter of organic growth, with sales up 12% and operational EBIT up 19% year-over-year.
- Operative net cash flow improved significantly to EUR1.6 million in Q2 2026 from -EUR0.5 million in Q2 2025, with a rolling 12-month cash flow of EUR11.4 million.
- Order books are strong, up over 25% year-over-year overall, with technical trade up nearly 30% and electronics up over 20%, supporting future growth.
- The company successfully reduced leverage, with net debt to operational EBITDA at 2.1, within its target range of 2-3, and is actively exploring M&A opportunities.
- Electronics business area saw sales growth of 15%, driven by Milcon's defense sector orders, including a EUR1 million order from a large program expected to continue into the 2030s.
- Return on capital employed (ROCE) remains below the 15% target at 9.6%, indicating ongoing challenges in achieving desired capital efficiency.
- Gross margins in technical trade declined due to a mix effect from large deliveries, which typically carry lower margins, and input cost pressures have not been fully offset by price increases.
- Return on trade working capital in the electronics business area decreased, partly due to growth in Milcon's large programs and temporary increases from ERP projects.
- The construction industry remains subdued, with only slight signs of improvement, which could limit growth in the technical trade segment.
- The company's net debt to EBITDA ratio is reported at 2.1 but is actually higher when including the hybrid loan, which is not factored into the calculation, indicating a less favorable leverage position.
So good morning and welcome to Borrea's quarter two 2026 results webcast we're sitting here in Vanta at Borrea's headquarters and I have here with me our head of financing and M&A Rafael Osmano Rafael is here to support me with the with the questions and facilitate the answering of those. In a little bit.
As an agenda today, we are covering three main items. So first, we start with the highlights and I'll go through a little bit of our strategic focus areas for the year.
Then we'll look at the second quarter and the first half of '26, both from the group perspective and from the business areas.
And then we'll have a Q&A session at the end of the session today.
As maybe kind of highlighting of where we are today, it's the seventh consecutive quarter that we have organic growth.
Our operational EBIT grew by 19% from comparing to the last year's same quarter.
We had a strong cash flow actually increased quite significantly.
And at the same time, we've been
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
