Q2 2025 Note AB (publ) Earnings Call Transcript
Key Points
- Note AB (LTS:0GSS) reported SEK980 million in sales for Q2, aligning with expectations despite a SEK35 million negative currency impact.
- The company maintained a strong financial position with an equity ratio of approximately 49% and a cash position of SEK634 million.
- Operating profit remained robust at 9.6% underlying, with a year-to-date figure of 9.8%, reflecting consistent profitability.
- The order backlog increased by 6% compared to the first quarter, indicating positive customer sentiment and future growth potential.
- Strong growth was observed in the green tech and security and defense segments, with year-to-date growth rates of 15% and 18%, respectively.
- Sales in the UK were significantly impacted, with a 34% decline due to a major customer zeroing out orders for the first three quarters.
- Currency fluctuations, particularly the stronger Swedish currency, are expected to reduce annual sales by approximately SEK100 million.
- The company experienced flat or reduced sales in recent quarters, raising concerns about growth momentum.
- The industrial segment showed low performance, although there are signs of improvement in order intake and forecasts.
- Price pressure in lower-cost regions remains a challenge, necessitating efficiency improvements and cost management strategies.
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Good morning and very welcome to Note second quarter presentation. It's as always, when we have the current President in the US, we see some disturbances during the weekend. So how do we cope with those changes and so on, but we will only touch upon that topic and focus more on notes performance, so.
Let's start with this. When we presented Q1, we were quite, how should I say, nervous about how the global factors would affect us. We were cautious in our guidance. We saw some slowdowns. We were We were seeing and expecting that the turbulence on the financial market would be bigger than it actually became, so we were quite pessimistic. We were expecting customers to move out of their orders more in time than we have seen. So if I look at this quarter, it came in as we see it fairly much in line with what we said, SEK980 million in sales with roughly SEK35 million in negative effect coming from currency, so sales were as we were expected.
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