Q2 2025 Green Landscaping Group AB (publ) Earnings Call Transcript
Key Points
- Green Landscaping Group AB (FRA:2WN) saw significant improvement in profit margins in their Finnish operations, indicating a positive turnaround.
- The company successfully issued its first bond in the second quarter, diversifying its financing options and providing future flexibility.
- Green Landscaping Group AB (FRA:2WN) made two strategic acquisitions, Wagner and Tesmo, which are expected to contribute positively to the company's growth and profit margins.
- The company's margin expansion activities in Sweden are progressing as planned, with expectations of increased profit margins by the end of the year.
- Despite market headwinds, the company reported a strong cash flow from operating activities, showing a significant improvement over previous quarters.
- The company experienced a weak Q1 due to a lack of winter and snow removal activities, which negatively impacted revenue, profitability, and cash flow.
- Net sales decreased by 3% in the second quarter, with a negative organic growth of 9%, primarily due to weaker-than-expected performance in April.
- EBITA decreased by 8% over the rolling 12 months, with the margin dropping from 8.5% to 7.8%, indicating pressure on profitability.
- The financial leverage increased to 2.9%, slightly higher than the company's financial plan, due to the negative impact of Q1 activities.
- The Norwegian market faced significant headwinds, with a decline in sales and EBITA, largely attributed to the weak winter season.
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Thank you and welcome to today's earnings call. And as mentioned, my name is Johan Nordstroem and I'm joined with our CFO, Marcus Holmstrom, who will manage the financial section of this presentation in a few minutes.
So before we dive into the presentation per se, let me ask you in a high-level pitch on where we -- how we look upon the second quarter and put that into context. So we started the year with the weak Q1, given the lack of winter and snow removal activities.
And this, of course, had a spillover effect in the month of April, meant that we had slightly lower revenue and profitability. And of course, it did have a negative impact on our cash flow as well as the activities we do in the first quarter. They are invoiced in that quarter, but typically we do receive payment in the beginning of the second quarter. So that had a negative effect on our leverage at the end of the day.
Beginning in May, things picked up quite significantly. So I would say that both May
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