Half Year 2025 Vestum AB (publ) Earnings Call Transcript
Key Points
- Vestum AB (OSTO:VESTUM) achieved a positive organic growth rate of 4% in Q2 2025.
- The company reported a significant improvement in cash flow, increasing by over 50 million.
- The flow technology segment experienced a robust sales growth of 32%, primarily driven by acquisitions.
- The niche product segment saw an improvement in profitability, with the EBITDA margin increasing from 11.6% to 12.4%.
- Vestum AB (OSTO:VESTUM) plans to strengthen its position in the UK market with additional acquisitions, capitalizing on the new 5-year investment plan in water infrastructure.
- Overall net sales decreased by 7% compared to the same period last year, largely due to divestments in the solution segment.
- Profitability in the solution segment dropped to 5.0%, mainly due to challenges in the installation businesses.
- The company faces increased leverage, now at 2.65 times reported EBITDA, due to recent acquisitions and investments.
- The UK market is currently cautious due to the ramp-up of the new investment plan, impacting short-term performance.
- The installation businesses within the solution segment are experiencing high competition and price pressure, affecting margins.
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Hello everyone, and welcome to our presentation of Weston's report for Q2 2025. My name is Simon Goffberg, CEO of Westem. I will today present the report myself as our CFO Olof Andersson had to be with his wife as they're expecting their fourth child any day now.
Okay, let's have a look at some highlights from the quarter. We have continued to invest in growth, both organically and through M&A. Organic growth was +4%, while cash flow improved by some 50 million. Profitability was in line with last year as shown in the adjusted I beta margin of 10.1%. We've completed one acquisition in the quarter and also invested in increased capacity for several of our production companies. These investments have led to an increased leverage, which is now at 2.65 times reported EBTA.
Moving on to the segments, starting with flow technology, sales grew by 32%, mainly driven by acquisitions. We continue to see overall solid underlying demand across the segment with some different characteristics depending on
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