THE PERIOD 1 APRIL- 30 JUNE 2025
- Net sales decreased by 10.6 percent to MSEK (22.3). Adjusted for currency effects between the comparison periods, net sales decreased by 8.2 percent.
- Order intake decreased by 33.9 percent to 27.7 MSEK (41.8). Adjusted for currency effects between the comparison periods, order intake decreased by 31.9 percent.
- Operating profit before depreciation (EBITDA) amounted to -8.5 MSEK (-11.1) and operating profit before financial items (EBIT) amounted to -10.7 MSEK (-13.4).
- Profit before tax amounted to -11.3 MSEK (-13.9).
- Earning per share amounted to -0.8 SEK (-1.0).
- Cashflow amounted to -0.7 MSEK (-3.4), of which -1.2 MSEK (1.4) from operating activities, -0.7 MSEK (-1.4) from investing activities and 1.1 MSEK (-3.4) deom financing activities.
- Cash and cash equivalents amounted to19.3 MSEK (40.7) at the end of the period.
- FlexQube have received an order worth approximately 8.5 MSEK from a new automotive manufacturer in USA. The affair is the largest order to date in North America for the company's tugger train concept.
- The first AMR project in Mexico is installed. The delivery contains 4 Navigator AMR + load carriers to a global truck manufacturer.
- The Board has decided to repurchase the former CEO's options amounting to 220,000 from three different programs, and that the repurchased options shall be cancelled. This results in a reduced dilution of approximately 1.6%.
THE PERIOD 1 JANUARY - 30 JUNE 2025
- Net sales decreased by 16.3 percent to 51.7 MSEK (61.8). Adjusted for currency effects between the comparison periods, net sales decreased by 20.8 percent.
- Order intake decreased by 32 percent to 49.1 MSEK (72.3). Adjusted for currency effects between the comparison periods, order intake decreased by 30.1 percent.
- Operating profit before depreciation (EBITDA) amounted to -12.6 MSEK (-20.2) and operating profit before financial items (EBIT) amounted to
-16.9 MSEK (-24.8). - Profit before tax amounted to -18 MSEK (-26.2).
- Earnings per share amounted to -1.4 SEK (-2.0).
- Cash flow amounted to -14.6 MSEK (-8.8). of which -4.5 MSEK (-12.2) from operating activities, -1.7 MSEK (-2.6) from investing activities, and -8.5 MSEK (6.0) from financing activities.
- Cash and cash equivalents amounted to 19.3 MSEK (40.7) at the end of the period.
EVENTS AFTER THE END OF THE QUARTER
- FlexQube received an order worth approximately 2.4 MSEK for the delivery of material handling carts to a well known German automative manufacturer with a plant in the United States. The order is a direct result of the partnership agreement signed at the end of March between FlexQube and Transpofix GmbH.
- FlexQube received an order worth approximately 3 MSEK for the delivery of customized material handling carts to a global manufacturer with operations in Tennessee, USA.
- FlexQube received a pilot order from an existing U.S. customer for a material handling that could evolve to FlexQube's largest projects to date. The pilot will evaluate a scalable configuration tailored to the customer's operations. If successful, the first phase of a full rollout is expected to result in an order of 6 million or more in early 2026. Total project volume for 2026 and 2027 could reach above USD 12 million.
Link to the report for the second quarter 2025: https://flexqubegroup.com/financial-information/
The entire quarterly report is also attached to this press release.
CEO LETTER
Order intake trending higher and stable operating cash flow
So far in 2025 we have kept the share of mechanical cart sales almost intact, but we have underperformed on tugger train system and automation sales. However, the projects are still there and the projects with highest value and potential lie in these segments. Therefore, it is extra rewarding and satisfying that we closed our largest tugger train order in North America ever in the quarter worth 8.5 MSEK and there is potential for more in the coming years with this customer.
As the order intake in the first quarter came in on the soft side, it affected our sales in the beginning of the second quarter. Sales in the quarter came in at 22.3 MSEK and the mix of products in the quarter was skewed towards sales of mechanical carts, which indicates that there is significant upside to our sales, when the AMR sales starts growing more. Both order intake and sales in June were at a break-even level for us. Order intake in the quarter improved by 28.9% compared to the first quarter.
EBITDA came in at -8.5 MSEK which is an improvement compared to last year and of course an effect of the sales volume. Our break-even level is around 40 MSEK on a quarterly basis and we need to have a better product mix in our sales to reach that going forward. Our strong product margin in the second quarter is important to highlight as well. It reached above 50% in the quarter and with an increase in volume there is significant upside to improve our bottom-line results in the future.
The new pilot order that we disclosed to a large company in the U.S. could be the beginning of much larger volumes for us, both for tugger train related product sales but also for our AMR-system. The pilot is intended to evaluate a scalable configuration tailored to the customer's operations. If successful, the project has the potential to exceed USD 12 million in order value over the next 12-18 months and we expect the first volume order in beginning of 2026, if the pilot is successful - and the customer choose FlexQube as the final vendor.
Projects like this have the power to be truly transformative for FlexQube - financially but of course also from a brand recognition and awareness perspective in the industry. I'm very proud to lead a small Swedish company that clearly offers a product and mindset around material handling that resonates with some of the largest players in the world. Opportunities at this scale have the potential to reshape our future.
As we close the second quarter of 2025, there's no doubt we're entering an exciting chapter for FlexQube.
We have just secured the largest order in North America in three years, which serves as a strong validation of our value proposition and the modular flexibility we bring to customers around the world. The combination with our modular carts and the LiftRunner Tugger Train system, from LR Intralogistik GmbH that we have the exclusive distribution license for in North America, is an important platform for us. I am also very happy that we extended our product range with the Tugger Train Platform from Transpofix GmbH with the agreement signed in the spring of 2025. Our partnership with Transpofix GmbH has resulted in two rather prominent orders in short time and we expect more orders with this tugger train system during the second half of 2025. On top of that, our pipeline for the FlexQube Navigator AMR has grown significantly - with increasing demand from both new prospects and existing customers expanding their footprint.
We are also seeing the benefits of a more experienced and focused organization. Over the past 12 months, we have had a more stable organization, with lower employee turnover and a better team setup for collaboration cross borders. This gives us greater leverage to handle larger, more complex projects and deployments - something we are actively pursuing.
While the general industrial market remains cautious and investment cycles are longer than usual, we are in active discussions around multiple large-scale projects with long-term potential. The value of our offering becomes especially clear when customers look for automation that can scale with them and ease their dependency on hard-to-find labor.
In Europe, we are focusing our sales efforts on the defense industry, with several highly interesting projects in the coming quarters. However, Europe currently remains a secondary market for us, after primarily the U.S. and to some extent Mexico, where we are now prioritizing our resources.
In early July, I spent two weeks on the road across seven U.S. states, visiting both current customers and potential new ones. One thing was clear across the board: labor scarcity is a growing concern. "Now hiring" signs were everywhere, and the competition for entry-level and hourly roles is intense. Retaining staff is becoming just as hard as hiring them. With recent shifts in U.S. immigration policy, the door may be opening wider for automation as a critical growth lever - and FlexQube is well positioned to deliver value in that space.
A prominent example is Panasonic's De Soto battery plant in Kansas, which has hired just 660 of the 4,000 promised workers, and is delaying full staffing amid economic uncertainty. This underlines the urgency, and opportunity, for automation solutions like ours to help plants fully operate their shifts.
In many of the factories I visited, material movement is still largely dependent on forklifts. Most sites have between 50 and 100 forklifts in daily operation. Based on our observations, FlexQube AMRs have the potential to replace up to 50% of that fleet, with a typical replacement ratio of 1 to 3 AMRs per forklift. That means a single plant shifting away from 30 forklifts could represent a $5-15 million sales opportunity for us - and that's just one site.
While Liberation Day and the surrounding momentum did help push some customer decisions forward, the overall market remains cautious, and investment decisions are still taking longer than we had anticipated. The overall trade situation is becoming more clear by the day though, and I am optimistic that we have already seen the peak of uncertainty, which would allow our customers to finally go ahead and release the projects.
We have built a promising pipeline for the FlexQube Navigator AMR, but we have not yet seen the conversion rate we expected. While external factors certainly play a role, we also recognize that we must do better - in how we engage, educate, and guide customers through the automation journey. It's our responsibility to close that gap and ensure we convert interest into action more consistently. Given that there is a high need for better conversion for both our AMR and tugger train side of the business we have decided in the management team to put even more effort into the market with the highest potential for these product lines and that is USA. We will more or less solely focus our marketing resources and efforts to that market, and we will intensify travel and presence in the U.S. geography. The projects in U.S. will have priority internally as we have concluded that the market need, combined with our product offering and the footprint with our plant in Duncan, SC, creates the best recipe for success for FlexQube long term.
Our unique Navigator AMR system, combined with our tugger train portfolio, has captured the interest of a major U.S. company as mentioned earlier and disclosed in the press release about the first pilot order. Together, we are now developing a highly promising product configuration with the potential to scale broadly across their network in the coming years.
As we enter the second half of 2025, motivation across the organization is high. We are determined to show our shareholders, customers, and partners what FlexQube is truly capable of. With clear focus and a strong will to succeed, I'm confident we will continue to excel in the months and years ahead.
For more information, contact:
CEO, Anders Fogelberg
anders.fogelberg@flexqube.com
+46 702 86 06 74
About FlexQube
FlexQube is a technology company headquartered in Gothenburg, Sweden with subsidiaries in USA, Mexico, Germany and England. FlexQube offers solutions for cart-based material handling using a patented modular concept. FlexQube develops and designs customized solutions for both robotic and mechanical cart logistics. Through the own developed and unique automation concept FlexQube can offer robust and self-driving robotic carts. FlexQube has more than 1200 customers in 40 countries with primary markets being North America and Europe.
FlexQube's customers can be found within the manufacturing industry, distribution- and warehousing. We represent some of the most successful companies in the world with a significant share being represented on the Fortune 500 list. These companies exist within automotive, electric vehicle manufacturing, online retail, heavy-duty trucks, industrial automation and retail logistics.
This information is information that FlexQube is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-08-06 09:15 CEST.
