Q2 2025 Troax Group AB (publ) Earnings Call Transcript
Key Points
- Troax Group AB (FRA:5TOA) maintained a solid gross margin in line with their informal target of around 40%.
- The company initiated a cost reduction program expected to save EUR 10 million annually, with full effects anticipated by 2026.
- APAC region showed underlying growth of 7-8% in local currencies, despite reporting flat in euros.
- Troax Group AB (FRA:5TOA) has a stable net debt to EBITDA ratio of 1.1, providing room for further acquisitions and organic investments.
- The company is making progress on strategic priorities, including simplifying the supply chain and optimizing the manufacturing footprint in Europe.
- Order intake growth declined by 6% in the second quarter, with notable weakness in Northern Europe and the Americas.
- The EBITA margin decreased to 14.4% from 16.8% in the previous year, primarily due to lower volumes and FX effects.
- The company faced FX headwinds and losses impacting results by approximately 70 basis points.
- Troax Group AB (FRA:5TOA) had to lay off approximately 225 employees due to lower volumes, mainly in Europe and the US.
- Sales declined by 4% compared to the previous year, reflecting challenges in the market environment.
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Hi, everyone, and welcome to the second quarter interim report for the Troax Group. My name is Martin Nystrom, and I'm President and CEO of the group. And together with me, I'll have Anders Eklof. And together, we will present the second quarter results. And after the presentation, we will open up for a Q&A.
So without further ado, let's dive into some news and of course, the quarter. So the second quarter was pretty -- offered a very interesting macro environment and in total we reported a minus 6% order intake growth. Europe continued pretty slowly as well as Americas, while APAC was more stable in the first quarter.
If we look to North Europe, we continue to develop weakly, driven by the automotive as well as the warehousing segments. Southern Europe grew in the quarter, and we saw this being driven by general industry as well as the process segment. We had a good run in Americas in the first quarter, but we saw from the beginning of April that our customers have
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