Q2 2025 VBG Group AB (publ) Earnings Call Transcript
Key Points
- VBG Group AB (LTS:0GXK) maintained a stable gross margin of 32% despite a decline in sales volume.
- The company completed two strategic acquisitions: Ledson, a specialist in vehicle lighting, and Malmedie, a leader in coupling technology for industrial applications.
- Sales for the truck and trailer equipment division increased by 2.4% compared to the previous year, with a strong EBITDA margin of 16.9%.
- The company received SEK13.4 million in retroactive pandemic support in the US, positively impacting EBITDA.
- VBG Group AB (LTS:0GXK) is optimistic about growth in the second half of 2025, driven by a strong order intake and contributions from recent acquisitions.
- Revenue declined by 9% compared to Q2 2024, largely due to currency fluctuations and the strengthening of the Swedish crown.
- EBITDA margin decreased to 13.1% from 14.5% in the same quarter of the previous year.
- The mobile thermal solutions segment faced lower sales volumes due to reduced demand in the off-road vehicle and public transport bus segments.
- Operative cash flow decreased significantly to SEK83.7 million from SEK204.9 million in Q2 2024, mainly due to higher working capital tied up.
- Earnings per share dropped to SEK4 from SEK6.71 in the previous year, reflecting lower profitability.
Welcome to the VBG Group Q2 report 2025 presentation. (Operator Instructions) Now I will hand the conference over to the speakers, CEO Anders Erken; and CFO, Frederick Jigneus. Please go ahead.
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Good morning, everyone. Welcome to the quarter 2 presentation of the VBG Group. Let me briefly. Summarize quarter 2 and Frederick will give you all the details necessary in the next coming slide. First of all, we have a revenue decline of 9% versus Q2 2024. We can say that a lot of this is related to the currency fluctuations.
Almost seven, yes, a little bit more than 7% of the decline or 83% of the decline was related to the strengthening of the Swedish crown. But the important thing if we look at the quarter, that is, -- that the sales improved gradually as the quarter progressed and we could see a good trend in the month. And the main drivers for this, that is, -- that destocking is completed on the off-road side in North America as well
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