Q2 2025 Mips AB Earnings Call Transcript
Key Points
- Mips AB (MPZAF) achieved 12% organic growth in Q2 2025 despite challenging conditions, with year-to-date organic growth at over 23%.
- The company saw volume growth in the US market and maintained strong momentum in Europe, achieving over 50% growth in the European market.
- Mips AB (MPZAF) launched new products, including the Mips Air Node Pro version in the bike category, which was well-received at Eurobike, the world's largest bike show.
- The company reported a strong gross margin of 74.2% in Q2 2025, up from 72.9% the previous year, primarily due to a favorable sales mix.
- Mips AB (MPZAF) has a strong cash position with no loans, and it paid out SEK172 million in dividends, corresponding to 122% of net earnings.
- The rapid implementation of tariffs created uncertainty in the US market, impacting short-term sales across all three categories.
- Mips AB (MPZAF) experienced a 28% decline in the Moto category, attributed to tariffs and a lack of priority among brands.
- Legal costs negatively impacted EBIT, with SEK14 million incurred in Q2 2025, contributing to a 22% decrease in EBIT compared to the previous year.
- The company faced a negative impact from foreign exchange effects due to the strengthening of the Swedish krona.
- The Safety category experienced soft performance with only 12% net sales growth, affected by delays in ordering due to tariffs.
Good day, and thank you for standing by. Welcome to the Mips interim report second-quarter 2025 webcast and conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Max Strandwitz, CEO. Please go ahead.
Thank you, operator. Good morning, everyone. My name is Max Strandwitz. I am the CEO of Mips. And with me today also presenting, I have our CFO, Karin Rosenthal. We will take you through the Mips Q2 2025 results presentation.
And if we start with the key highlights of the quarter, we saw good development in the quarter with 12% organic growth in the second quarter despite very challenging conditions. Year-to-date organic growth is now at 23%-plus. The rapid implementation of tariffs did have a significant impact on sales across all the three categories. However, we did see that the sales improved over the course of the quarter, as the effects of the tariffs became a bit more
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