Second quarter
- Order intake increased by 16 percent to SEK 558 million (483), adjusted for currency effects and acquisitions it increased by 17 percent.
- Net sales decreased by 5 percent to SEK 561 million (588), adjusted for currency effects and acquisitions it decreased by 7 percent.
- EBIT increased to SEK 61.6 million (60.1).
- EBIT margin strengthened to 11.0 percent (10.2).
- Profit after tax was SEK 30.3 million (39.8).
- Earnings per share were SEK 0.99 (1.37).
- Free cash flow increased to SEK 62.4 million (60.1).
- The Westermo business entity completed the acquisition of the technology company Welotec.
- A directed new share issue of SEK 300 million was carried out to partially finance the acquisition.
First half-year
- Order intake increased by 10 percent to SEK 1,109 million (1,010), adjusted for currency effects and acquisitions it increased by 10 percent.
- Net sales decreased by 7 percent to SEK 1,106 million (1,187), adjusted for currency effects and acquisitions it decreased by 8 percent.
- EBIT amounted to SEK 110.8 million (134.6).
- EBIT margin was 10.0 percent (11.3).
- Profit after tax amounted to SEK 62.3 million (91.0).
- Earnings per share reached SEK 2.09 (3.14).
- Free cash flow amounted to SEK 50.1 million (51.8).
COMMENTS FROM THE CEO, JENNY SJÖDAHL
"During the second quarter of 2025, Ependion's order intake, EBIT and cash flow improved in a market that continued to be affected by significant uncertainty regarding the conditions for international trade. We see the stable development of the Group's business despite this as a clear sign of strength. At the same time, the period was characterized by a high level of activity for both business entities, with Westermo's acquisition of the German technology company Welotec and Beijer Electronics' launch of the next generation of operator panels in the X3 family as particularly important future investments with a view to achieving the Group's financial targets.
Order intake for the second quarter increased by 16 percent to 558 MSEK, with all focus segments contributing to the positive development. Adjusted for currency effects, the increase was 22 percent. Excluding the acquisition of Welotec, which is included in the Group's accounts from June, order intake increased by 11 percent. For the Westermo business entity, order intake increased by 22 percent to 360 MSEK, with organic order growth of 15 percent. For the Beijer Electronics business entity, order intake increased by 5 percent to 200 MSEK. At the end of the period, the Group's order backlog amounted to 1,101 MSEK, of which Westermo accounted for 965 MSEK and Beijer Electronics for 136 MSEK.
The stronger Swedish krona and the general weakening of the US dollar are having a noticeable impact on the Group. EBIT in the quarter was affected by -9 MSEK and the comparative figures for order intake and sales were negatively affected by approximately 5 percentage points.
Net sales decreased by 5 percent to 561 MSEK for the period. However, because of strengthened gross margins, savings and great restraint with current costs, Ependion's EBIT increased to 62 MSEK, which gave an EBIT margin of 11.0 percent. For the Westermo business entity, EBIT increased to 54 MSEK with an EBIT margin of 15.1 percent. Beijer Electronics' EBIT amounted to 19 MSEK with an EBIT margin of 9.2 percent, which was lower than for the corresponding period last year but better than the last two quarters. The Group's cash flow increased to 62 MSEK for the period.
Ependion's product development expenditure amounted to 14.3 percent of the Group's revenue in the quarter due to large future-oriented investments in organic growth. At the same time, development expenditure is expected to decrease in the second half of 2025, when Beijer Electronics' intensive work on launching a completely new generation of operator panels enters a calmer phase.
During the quarter, the development of the Group's sustainability work continued. Our updated materiality analysis has been approved by the Board and now forms the basis for preparations for 2025 reporting according to upcoming regulations. Within the social dimension, we are strengthening our work along the entire value chain - from a focus on human rights and increased community engagement to internal training efforts.
In Beijer Electronics, we continue to implement the new, more focused strategy. As expected, the phasing out of lower-margin products has had an effect in the form of increased gross margins, which together with the cost reduction implemented at the beginning of the year provides the basis for performance and profitability improvements when volumes increase.
In Westermo, we are continuing to invest in building an even stronger business with a broader offering for our focus segments and a greater global presence. The establishment in India, which is proceeding according to plan, is an important investment for growth. The acquisition of Welotec, which was presented in April and completed in June, also represents a significant milestone. The purchase price of 35.2 MEUR was partly financed with a directed new share issue of 300 MSEK that was subscribed without a discount, which gives Ependion the financial strength to continue to explore opportunities for complementary acquisitions. Welotec has a strong position in the energy segment with a focus on the digitalization of the electricity grid and contributes with new technology in Edge Computing, which complements Westermo's offering and strengthens the conditions for increasing the growth rate. The integration of Welotec was initiated during the period and we are already seeing that a stronger joint offering is meeting a positive response in the market.
While we see increased order intake in the period, the uncertainty that has characterized the global economy for a long time remains. Tariffs and trade barriers have only had a limited financial impact on the Group in the quarter, but we are closely monitoring developments. Westermo's products are currently exempt from the announced import tariffs in the US, while Beijer Electronics has increased prices to compensate.
Ependion is well positioned in attractive markets. The strategic investments and continuous improvements we are driving make us well equipped for the future. In the medium and long term, our prospects for profitable growth are very good given the structural growth in our focus segments. In the short term, uncertainty remains. In times of uncertainty, we focus on what we can influence. We balance cost discipline with strategic future investments and are focused on creating value, regardless of market conditions."
INVITATIION TO PRESENTATION OF THE REPORT
Today, a web and teleconference will be held for press and analysts, where President and CEO Jenny Sjödahl and CFO Joakim Laurén present the company and comment on the report.
Time: Tuesday, July 15, 13:30 CEST
If you wish to participate via webcast please use the link below.
https://ependion.events.inderes.com/q2-report-2025/register
If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://events.inderes.com/ependion/q2-report-2025/dial-in
The report and the presentation will be available at the company's website www.ependion.com. A recording of the webcast will also be available here after the event.
Welcome to join!
This disclosure contains information that Ependion 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 15-07-2025 13:00 CET.
For more information please contact:
President and CEO, Jenny Sjödahl, tel +46 (0)725 89 60 80
EVP and CFO Joakim Laurén, tel +46 (0)703 35 84 96
Ependion AB is an expansive global technology group delivering digital solutions for secure control, management, visualization and data communication for industrial applications in environments where reliability and high quality are critical factors. The Group's customers include some of the world's leading companies. Ependion consists of independent business entities with total sales of SEK 2.3 billion in 2024 and 950 employees. The company is listed on Nasdaq Stockholm Main Market's Mid Cap-list under the ticker EPEN. ependion.com
