Q2 2025 Addtech AB Earnings Call Transcript
Key Points
- Addtech AB (ADDHY) reported a 5% increase in sales, with 2% being organic growth, maintaining high-level margins at 14.9%.
- The company announced nine acquisitions year-to-date, adding approximately SEK1.2 billion in sales, contributing positively to growth.
- Strong performance in the energy segment, driven by improved product mix, strong market demand, and high pricing power.
- Continued positive trend in process technology, with solid sales growth across various segments.
- Stable financial position with strong cash flow and a high cash conversion rate, supporting future growth ambitions.
- Market uncertainty led to a postponed uptick in demand, particularly affecting components towards customers in Europe.
- Weak sentiment among customers in parts of the business, especially in the special vehicle segment.
- EBITA growth was partly hampered by negative currency effects and a weak result within the automation segment.
- Hesitations for larger projects, with customer decisions being postponed, affecting potential growth.
- Industrial solutions experienced a drop in the quarter, primarily due to lower sales in the special vehicle market.
Good morning, and most welcome, everyone, to Addtech's second quarter report presentation. The setup is as usual, that Malin and I will spend approximately 15 minutes to summarize the highlights and give our comments on the results and then followed by a Q&A session.
So a brief overview. We conclude a good quarter for Addtech on the whole with high activity and continued growth. We increased our sales with 5%, of which 2% were organic, and we defend our high-level margins at 14.9% and the cash flow remains strong.
We kept up the high pace of acquisitions also during the second quarter and have year-to-date announced nine acquisitions, adding a total of approximately SEK1.2 billion in sales all in all. Satisfying to see that the group continued to deliver growth in a partly challenging market looking a bit more into sales in the quarter. Given, as I said, the market uncertainty, it's great to see that four out of five business areas contribute possibly three or five with continued organic growth.
And
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