Karnell Group AB (publ) Q2 2025 Earnings | 07/18/2025

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Karnell Group AB (publ) announced its Q2 2025 results on July 18, 2025, showcasing robust growth across both top and bottom lines, underpinned by disciplined execution and continued expansion through acquisitions. Net sales for the quarter surged 20.7% year-over-year to SEK 431.0 million, with organic growth contributing 1.4% and the remainder driven by the company's acquisition strategy. EBITA grew 54.4% to SEK 62.9 million, and the group’s EBITA margin rose to 14.6% from 11.4% in Q2 2024, reflecting strong performance in both newly acquired and existing niche industrial technology companies. Net income for the quarter more than doubled to SEK 36.8 million, up from SEK 15.8 million a year ago, with basic earnings per share from continuing operations increasing to SEK 0.70 (compared with SEK 0.30 previously). Diluted earnings per share were SEK 0.68 versus SEK 0.29 last year. Cash flow from operating activities for the quarter was SEK 20 million, lower than anticipated due to working capital build-up ahead of Q3 deliveries—a process management described as normal seasonal timing, with partial reversal expected in the coming months. Performance was sector-driven: The Niched manufacturers segment delivered a particularly strong quarter, posting 19% sales growth (9% organic), with EBITA up 51% and a margin of 19.7%. The Product-owning companies segment also grew sales by 22%, though primarily via acquisitions, with organic growth down 7%. EBITA for this segment increased 33%, while its margin improved to 14.8%. The company continued to strengthen its presence internationally, highlighted by two recent UK acquisitions—Warwick SASCo and LundHalsey—that expand Karnell’s geographic footprint and support its growth strategy beyond the Nordics. Net debt increased to SEK 332 million, reflecting acquisition activity and additional share purchases from minorities, but leverage remained low at 1.4x EBITDA, providing headroom for continued M&A. Management expressed confidence entering the second half of 2025, citing stabilization in market conditions and ongoing pipeline opportunities, while maintaining their focus on disciplined capital allocation and operational efficiency. The rolling 12-month EBITA margin reached a record 13.3%, moving Karnell steadily towards its mid-term financial targets. About Inside Ticker: For timely financial analysis, strategic updates, and exclusive earnings coverage on Karnell Group AB (publ) and other Nordic industrial technology leaders, follow Inside Ticker and visit InsideTicker.com for the full story. Hashtags: #KarnellGroup #Q22025 #Earnings #FinancialResults #IndustrialTech #NetSales #EBITA #Acquisitions #OrganicGrowth #OperationalExcellence #NordicMarkets #Manufacturing #Expansion #GrowthStrategy #SEK #PrivateEquity #NicheCompanies #InsideTicker #Profitability #WorkingCapital #InvestorUpdate #Q2Results #ShareholderReturns #BusinessUpdate