Boreo Plc, HALF-YEAR REPORT JAN. 1 TO JUN. 30, 2025
August 6, 2025, at 9:00 EET
Strong organic growth and several important strategic achievements
April-June 2025
- Net sales increased by 19% to EUR 40.2 million (2024: 33.8). Organic growth was 17%.
- Operational EBIT decreased by 8% to EUR 2.2 million (2024: 2.4), representing 5.4% of net sales (2024: 7.0%).
- EBIT increased to EUR 2.5 million (2024: 1.6).
- Profit for the period improved to EUR 1.6 million (2024: 0.8).
- Net cash flow from operating activities was EUR -0.5 million (2024: -1.9).
- Operational earnings per share increased and were EUR 0.34 (2024: 0.31).
- Earnings per share were clearly up at EUR 0.43 (2024: 0.09).
- On April 1, 2025, Boreo announced that it had signed an agreement to acquire the sales operations of Elfa Distrelec in Finland, Latvia, Estonia, and Lithuania from RS Group plc.
- On May 8, 2025, Boreo announced that it had completed the acquisition of Spetselektroodi AS.
- On June 24, 2025, Boreo issued a EUR 10 million convertible hybrid bond to the Norwegian insurance company Protector Forsikring ASA.
January-June 2025
- Net sales increased by 12% to EUR 74.2 million (2024: 66.4). Organic growth was 11%.
- Operational EBIT increased by 19% to EUR 3.5 million (2024: 3.0), representing 4.7% of net sales (2024: 4.4%).
- EBIT increased to EUR 4.0 million (2024: 1.2).
- Profit for the period improved to EUR 2.3 million (2024: 0.0).
- Net cash flow from operating activities was EUR -0.2 million (2024: 4.2).
- Operational earnings per share increased and were EUR 0.39 (2024: 0.16).
- Earnings per share grew considerably and were EUR 0.53 (2024: -0.36).
- On March 6, 2025, Boreo completed the sale of its Estonian property, with a capital gain of EUR 0.7 million reported as a non-operational item in the H1 result.
Financial guidance and business model
Boreo's primary objective is sustainable long-term profit generation. This is achieved with a business model that is based on the acquisition, development and ownership of great entrepreneurial companies with the ability to generate sustainable long-term earnings growth and strong cash flows. The profits generated by the portfolio of companies are re-invested back to operations or to acquisitions with attractive expected returns on capital. The decentralized operating structure promoting a culture of ownership and release of entrepreneurial energy is a core pillar of the company's business concept and sustainable earnings growth is ensured through the support and coaching of companies and the personnel.
Boreo's focus is on earnings growth with attractive return on capital. The company's long-term strategic financial targets are:
- Minimum 15% average annual operational EBIT growth
- Minimum 15% Return on Capital Employed (ROCE)
- Net debt to operational EBITDA between 2 and 3 (including acquired businesses as if they had been held for 12 months at the reporting date)
Boreo's dividend policy is to pay an annually increasing dividend per share, considering capital allocation priorities.
The above-mentioned strategic financial objectives still serve as the company's financial guidelines. In line with its guidance policy, the company does not give separate short-term financial guidance.
Group's key figures
EUR million | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | 2024 |
Net sales | 40.2 | 33.8 | 19 % | 74.2 | 66.4 | 12 % | 134.0 |
Operational EBIT | 2.2 | 2.4 | -8 % | 3.5 | 3.0 | 19 % | 6.8 |
relative to the net sales % | 5.4 % | 7.0 % | - | 4.7 % | 4.4 % | - | 5.1 % |
EBIT | 2.5 | 1.6 | 51 % | 4.0 | 1.2 | 228 % | 4.1 |
Profit before taxes | 1.7 | 1.0 | 70 % | 2.4 | 0.0 | 17816 % | 1.3 |
Profit for the period | 1.6 | 0.8 | 91 % | 2.3 | 0.0 | - | 1.2 |
Operational net cash flow | -0.5 | -1.9 | - | -0.2 | 4.2 | - | 12.0 |
Cash conversion, % | 6 % | -61 % | - | 13 % | 161 % | - | 180 % |
Equity ratio, % | 42.2% | 40.1% | - | 42.2% | 40.1% | - | 39.2% |
Interest-bearing net debt | 28.2 | 32.7 | -14 % | 28.2 | 32.7 | -14 % | 30.0 |
Interest-bearing net debt relative to | 2.3 | 2.8 | - | 2.3 | 2.8 | - | 2.8 |
Return on Capital Employed (ROCE %), R12 | 8.4% | 9.2% | - | 8.4% | 9.2% | - | 7.9% |
Return on Trade Working Capital (ROTWC %), R12 | 26.2% | 28.3% | - | 26.2% | 28.3% | - | 25.2% |
Return on equity (ROE %), R12 | 7.9% | 3.0% | - | 7.9% | 3.0% | - | 2.8% |
Personnel at end of the period | 348 | 330 | 5 % | 348 | 330 | 5 % | 336 |
Operational EPS, EUR** | 0.34 | 0.31 | 10 % | 0.39 | 0.16 | 146 % | 0.51 |
EPS, EUR** | 0.43 | 0.09 | 378 % | 0.53 | -0.36 | - | -0.30 |
Operational net cash flow per share, EUR | -0.18 | -0.72 | - | -0.08 | 1.57 | - | 4.45 |
*Calculated in accordance with the calculation principles agreed with financiers. The calculation formula is presented later in this report.
**Starting from 2022, the calculation of earnings per share has included the effect of the hybrid bond interest recorded in equity, adjusted for tax. In Q2 2025, this net effect was EUR 0.16 per share, in Q2 2024 EUR 0.18 per share, in H1 2025 the net effect was EUR 0.33 per share, and in H2 2024 the net effect was EUR 0.24 per share.
Q2/2025 - CEO Kari Nerg:
Several important strategic achievements
The second quarter of 2025 was marked by several achievements, which support Boreo's future growth. We completed the acquisition of Spetselektroodi in Estonia, signed an agreement with RS Group to acquire the sales operations of Elfa Distrelec in Finland and the Baltics, and issued a EUR 10 million convertible hybrid bond to Protector Forsikring. With a strengthened financial position following the bond issuance and improved underlying business performance, we are well-positioned to pursue further acquisitions and profitable growth.
Q225 in line with expectations
Revenue grew in the second quarter by 19% of which 17% was organic. Operational EBIT was slightly below the previous year, mainly due to increased fixed costs and a higher impact from earn-out provision releases in the prior year.
While the current profitability level remains moderate compared to the potential of our portfolio, we are pleased to see positive results from the work done over the last 1.5 years. Revenue grew for the third consecutive quarter and in the first half of 2025, the company's revenue has grown by 12% and operational EBIT by 19%.
The strong revenue growth toward the end of the quarter led to a significant rise in receivables, resulting in an organic 3.5 million euro increase in working capital. Consequently, operative cash flow was negative by 0.5 million euros. We expect working capital to decrease in the second half of 2025.
The convertible hybrid bond issuance strengthened the company's balance sheet and net debt relative to the last 12 months' operational EBITDA declined from 3.1 to 2.3.
Order books remained stable, trade and geopolitical tensions continue to create uncertainty
Our companies' order books remained stable from the end of Q125, and support decent performance in the coming months. However, prevailing global trade and geopolitical tensions continue to impact the demand environment and increase uncertainty toward year-end. We continue to monitor the operating environment closely and will respond with actions swiftly if necessary.
Significant improvement potential when market conditions improve
We are pleased with the Group's recent progress and the successful completion of many short-term strategic goals. In the coming quarters, we continue to develop our existing businesses and strive to acquire new businesses that align with our acquisition criteria. We are confident of being on the right track, gradually reaching our long-term goals and of the Group being well positioned for significant earnings growth when market conditions improve.
Briefing for investors. analysts and media
A webcast where CEO Kari Nerg and CFO Jesse Petäjä present the Half-year report will be held on the same day at 11:00 am EET. The presentation is in English and questions can be asked after the presentation. The presentation material is available before the webcast on Boreo's website: www.boreo.com/investors.
You can watch the webcast at: https://boreo.events.inderes.com/q2-2025. The event will be recorded and the recording will be available after the event at: www.boreo.com/investors.
Boreo Plc' financial reporting in 2025:
Interim report 1-9/2025: October 29, 2025
Vantaa, August 6, 2025
BOREO PLC
Board of Directors
Additional information:
Kari Nerg
CEO
tel +358 44 341 8514
Jesse Petäjä
CFO
tel +358 40 706 9450
Distribution:
NASDAQ Helsinki Ltd
Financial Supervisory Authority
Principal media
www.boreo.com
Boreo in brief:
Boreo is a company listed on Nasdaq Helsinki that creates value by owning. acquiring and developing small and medium-sized companies in the long-term. Boreo's business operations are organized into two business areas: Electronics and Technical Trade.
Boreo's primary objective is sustainable long-term profit generation. This is achieved with a business model that is based on the acquisition and ownership of great entrepreneurial companies with the ability to generate sustainable long-term earnings growth and strong cash flows. The profits generated by the portfolio of companies are re-invested back to operations or to acquisitions with attractive expected returns on capital. The decentralized operating structure promoting a culture of ownership and release of entrepreneurial energy is a core pillar of the company's business concept and sustainable earnings growth is ensured through the support and coaching of companies and the personnel.
The Group's net sales in 2024 were EUR 134 million and it employs over 300 people in seven countries. The company's headquarter is in Vantaa.
