Interim report Q2 2025

Strong sales performance despite a challenging environment

Continued strong demand, particularly in the Nordic region, together with high delivery volumes resulted in a strong second quarter. Order intake increased organically by 10 per cent and amounted to SEK 451 million (433). Net sales amounted to SEK 530 million (450), an organic year-on-year increase of 23 per cent. Operating profit increased 15 per cent to SEK 94 million (82), corresponding to an EBIT of 17.8 per cent (18.2). The decline in margins during the quarter was largely driven by the stronger Swedish krona. Despite these challenges, our underlying business continues to show strength and we are standing strong, growing organically and building for the future. During the quarter, we recorded our highest order intake and net sales for a second quarter since 2022. It is clear that our strategy is yielding results and that we have stable ground to stand on.

Penetration increasing while currencies and mix effects impact the gross margin

The gross margin for the quarter amounted to 40.7 per cent, down from 44.9 per cent, which was a result of several factors. A stronger SEK negatively impacted export sales and a less favourable market and product mix with a lower proportion of aftermarket sales and a higher share of volume products to partners in Europe negatively impacted the gross margin. Nevertheless, our market penetration has continued to increase, which is a clear sign that we are continuing to change the world of digging. This strategic development facilitates the long-term strengthening of our position, even if it has a short-term negative impact on the gross margin.

Strong performance in the Nordic region offsetting continued uncertainty in the Americas

The Nordic region continues to deliver strong earnings. The digging season has picked up pace and is contributing to strong demand in line with the region’s normal seasonal pattern. This has resulted in an order intake of SEK 191 million (167), corresponding to organic growth of 18 per cent. Net sales increased to SEK 236 million (188), corresponding to a substantial organic increase of 30 per cent.

Europe continues to demonstrate strong momentum on the back of rising market penetration and our performance in the DACH region in collaboration with local partners. This increased impact is confirmed by rising volumes in the segment for smaller machines in several markets. Order intake increased to SEK 185 million (173), an organic increase of 11 per cent, while net sales rose to SEK 197 million (177), which was an organic increase of 15 per cent.

In the Americas, demand has deteriorated as a result of uncertainty regarding future tariffs, which has resulted in an organic decrease of the order intake by 26 per cent. At the same time, net sales increased organically by 12 per cent due to deliveries based on order intake of previous quarters.

The performance in Asia-Oceania was positive. Order intake increased organically by 24 per cent and net sales by a full 53 per cent. Developments in Japan are continuing in the right direction, albeit from low levels, and we are confident about its long-term potential. With the country’s increasing focus on enhancing efficiency, backed by governmental incentive programmes, demand is growing for new technology within the industry.

Continued growth while seasonality and currencies have an impact

Looking forward, we anticipate continued growth compared with the preceding year as a result of the recovery in the Nordic region and increased market penetration in Europe and AsiaOceania. In the second quarter, we were negatively impacted by the stronger Swedish krona and we cannot rule out that this effect will be sustained moving forward.

Together, we are changing the world of digging

The interest in tiltrotators is growing around the world. This was especially evident at the Bauma exhibition in Germany in April and was further confirmed in June during our participation at TKD in the Netherlands and CSPI Expo in Japan. The tiltrotator has become a standard feature in the industry, and we see this as proof that our long-term strategy is paying off. The interest from end customers demonstrates that we are not just a part of this development, but rather, we are driving it forward.

Our growth and globalisation journey comes with the need to develop our internal culture and shared values. To realise our high ambitions, a strong, uniform and inclusive corporate culture is crucial. In line with this, we have now commenced a project to develop our core values together. These values will permeate our leadership, form the basis of our decisions, and be a natural part of our day-to-day work. This is how we are changing the world of digging.