Q2 2025 Ependion AB Earnings Call Transcript
Key Points
- Ependion AB (FRA:TW4) reported a 16% increase in order intake, with Westermo growing by 22% and Beijer Electronics by 5%.
- The company completed the acquisition of Welotec, which has started positively and is expected to enhance their energy market offerings.
- Earnings before interest and taxes (EBIT) improved to SEK62 million, representing an 11% margin, up from 10.2% the previous year.
- Strong free cash flow was reported at SEK62 million, indicating solid financial health.
- The launch of the new X3 series in Beijer Electronics is expected to drive future growth, with a 23% increase in order intake for the HMI product family.
- Sales decreased by 5% due to lower order intake from the end of 2024 and the beginning of 2025, as well as the phase-out of certain product lines.
- Currency headwinds, particularly the strong Swedish krona against the US dollar, negatively impacted EBIT by SEK9 million.
- The geopolitical and economic uncertainty continues to create hesitation among customers, affecting investment decisions.
- Beijer Electronics' EBIT margin, although improved, remains below desired levels at 9.2%, indicating room for further improvement.
- The company faces challenges from tariffs, with Beijer Electronics having to increase prices in the US market to compensate for a 10% tariff impact.
Welcome to Ependion Q2 report 2025 presentation. (Operator Instructions)
Now I will hand the conference over to CEO, Jenny Sjodahl; and CFO, Joakim Lauren. Please go ahead.
Thank you very much. Welcome, everybody, to the Ependion quarter two call. The headline for our report this time is increased order intake and improved earnings in an uncertain market. So we, at present in the call is, as usual, myself, Jenny Sjodahl, today in Vasteras. And with me, I have Joakim Lauren located in Malmo today.
And as usual, the agenda looks like this. I will give a general business update first. Then Joakim will dig a little bit deeper into the numbers. Some concluding notes and outlook from myself, and then we open up for questions and answers.
So let's dive right into it. So the overall business update for the quarter. Well, I think we all see that the market is still affected by the uncertainty regarding the conditions for international trade, giving a slight hesitation among our
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