Improved EBITA margin and growing order backlog
• Net sales decreased by 9 percent, to SEK 6,974 (7,694) million
• The order backlog was SEK 16,854 (17,559) million
• EBITA increased by 10 percent, to SEK 378 (343) million
• The EBITA margin increased to 5.4 (4.5) percent
• Profit after tax increased by 12 percent, to SEK 269 (240) million
• Cash flow from operating activities was SEK 123 (548) million
• Net debt amounted to SEK -3,131 (-2,518) million
• One acquisition was completed during the quarter, adding annual sales of approximately SEK 346 million
• Basic and diluted earnings per share increased by 13 percent, to SEK 1.31 (1.16)
CEO statement
Through our continued project selection, the EBITA margin improved in Sweden, Norway and Denmark. We report satisfactory earnings in Denmark, where developments are going as planned, and I expect a continuing gradual improvement going forward. Although demand in the Nordic market remains low, I note that market activities are improving in several locations and interesting customer dialogues are ongoing. The order backlog increased in Norway and Denmark during the quarter.
Net sales and EBITA
I am pleased that we, in a challenging market have increased both our margin and our earnings despite lower sales. Important factors for the margin development are our focus on margin before volume and the current project mix. Additional factors include our focus on restrictive project selection, cost control and pricing, as well as efficient production.
Over the past year, our restrictive project selection has resulted in lower sales for both service and installation. However, this is a priority we are pleased to have, in order to be able to maintain the necessary balance between a focus on profitability and risk exposure. The variation in the market between different geographic areas is significant. Demand remains weak in the southern parts of Sweden and in the Finnish market, but also in other local markets. We continuously adapt our resources to the current market situation.
The order backlog increased by almost SEK 1.3bn during the quarter, driven by a strong order intake in Denmark. The order backlog points to a stable installation volume in the coming quarters.
The weak market situation in southern Sweden continues to have a negative impact on sales and profitability in the Swedish business. The business in southern Sweden lost 18 percent of its volume compared to the second quarter of 2024, corresponding to approximately SEK 230 million. Adjustments made to the organisation in southern Sweden have stabilised the EBITA margin, which is still at a low level. Other business operations in Sweden are stable.
The Norwegian operations improved its project margins, which resulted in an improved EBITA margin. Organic growth was negative, as we had high production in a number of large projects in 2024. The project market in Norway remains challenging and it is important to keep adhering to our strategy of margin before volume.
The Danish operations continues to develop in a positive direction. During the quarter, profitability improved significantly; this is in line with my previously communicated expectations. I expect a continuous improvement in profitability in the coming quarters, as new orders have good margins and sales from old loss-making projects are gradually decreasing. My assessment is that we will increase the EBITA margin close to 5 percent in 2025.
The Finnish operations experienced a decrease of 15 percent in sales, but despite this decrease we managed to achieve acceptable profitability by adapting the organisation and costs to the current market situation.
Cash flow
Cash flow from operating activities and cash conversion declined. This was mainly due to an increase in accrued but not yet billed revenue in a large infrastructure project with a public sector client. The agreement with the customer stipulates that certain milestones have to be reached before invoicing can take place, and I expect this will occur in the second half of 2025.
Acquisitions
During the quarter, one acquisition was completed, which added annual sales of approximately SEK 346 million; at the beginning of the third quarter another acquisition was completed and this added annual sales of approximately SEK 45 million. As always, we focus on selecting the right acquisition candidates, which have a suitable culture and create value for Bravida. At present, identifying good acquisition targets is difficult, due to the weak and uncertain market conditions, but I want to emphasise that interesting acquisition discussions are ongoing continuously.
Sustainability
At Bravida, we take a long-term approach to sustainability in order to be a preferred supplier to our customers, an attractive employer and a leading stakeholder in the industry. I am very proud of the dedicated work we are putting into reducing workplace injuries is paying off. The LTIFR improved to 5.2, which is better than our current target of 5.5. The electrification of our vehicle fleet is reducing our own carbon footprint, and during the last 12 months we have reduced emissions from our vehicles by 15 percent, and by 40 percent from 2020 in relation to sales.
Outlook
For Bravida, I believe that the demand for service will remain stable. The installation volume will gradually improve, and benefit from a need for renovations, and investments in infrastructure, electrification and defence facilities. I have noticed a significantly better activity in the market, with more enquiries and interesting discussions, not least relating to infrastructure. However, there are considerable geographical differences in the demand for installation work relating to new builds. The markets in southern Sweden and Finland are still weak, whereas the market situation in the rest of Sweden, Denmark and Norway is generally stable, but with considerable geographical differences. We generally expect a continuing uncertain and hesitant market in 2025, impacted by the weak construction market and increased uncertainty in the world in general. For 2026-2027, the outlook is brighter, with increased demand for installation in new builds and renovation projects, according to third-party forecasts.
Mattias Johansson
Stockholm, July 2025
The report will be presented at 09:30 CEST by CEO and Group President Mattias Johansson and CFO Petra Vranjes. The presentation will be held in English and can be followed online or by phone.
Link to webcast
https://bravida.events.inderes.com/q2-report-2025
Telephone conference
To participate in the conference call, please register via this link: https://conference.inderes.com/teleconference/?id=50052432
After registration, you will be provided with telephone numbers and a conference ID to access the conference. There will be room for questions in the telephone conference.
The report and presentation will be available at: https://investors.bravida.com/en/reports-and-presentations
For further information, please contact:
Peter Norström, Head of Investor Relations
peter.norstrom@bravida.se
+46 8 695 20 07
This disclosure contains information that Bravida Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 11 July 2025, 07:30 CEST.
Good properties make a difference - that's why Bravida exists. As one of the Nordic region's leading suppliers of end-to-end technical solutions in service and installation, we help our customers create effective and sustainable properties.
Bravida's long-term goal is to be carbon-neutral throughout the value chain by 2045. We have 14,000 employees and a presence in about 190 locations in Sweden, Norway, Denmark and Finland. Bravida's shares are listed on Nasdaq Stockholm. www.bravida.com
