Q2 2025 Hexpol AB Earnings Call Transcript
Key Points
- Hexpol AB (HXPLF) reported stable sales in Europe and growth in the engineered products segment.
- The company achieved a strong operating cash flow of SEK834 million, surpassing EBIT for the quarter.
- Hexpol AB (HXPLF) continues to focus on sustainability, with high interest in recycled products, particularly from the automotive industry.
- The acquisition of Kabkom has been successfully consolidated, contributing to growth in the wire and cable segment.
- Hexpol AB (HXPLF) maintains a strong financial position, with a net debt-to-EBITDA ratio of 1.27, allowing for potential future acquisitions.
- Overall sales were down 8% compared to the same period last year, primarily due to lower demand in North America.
- The company faced a negative FX impact of SEK340 million on sales.
- Lower organic demand was observed, particularly in the North American automotive segment.
- Operating margin decreased to 15.1%, affected by a less profitable product mix and higher operating expenses.
- There is ongoing uncertainty related to the US trade policy, impacting demand and creating a wait-and-see attitude among potential acquisition targets.
Thank you, operator. Hello, everyone, and warm welcome to the HEXPOL Q2 presentation. And thank you for joining us today. We know a lot of companies are reporting today. So I will start with the business update and Peter will then take us through the financials.
If you please turn to page 4. Thank you. I will start by going through the Q2 performance. Despite the uncertainty in the world, our group has shown resilience. We are happy to report that Europe showed stable sales and that we had another quarter of growing sales within our second business era, engineered products.
With that said, we saw a lower demand in the North American market, affected by the high uncertainty related to the US trade policy. That is actually the main reason why we could not grow the overall sales and results compared to last year.
In the quarter, we delivered sales of close to SEK5 billion and an EBIT of SEK756 million with a margin of 15.1%. The operating cash flow was on a good level, reaching SEK834 million. If we move on to demand
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