Alfa Laval Corporate AB Q2 2025 Earnings | 07/22/2025

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Alfa Laval Corporate AB delivered record profitability for the second quarter of 2025 despite a challenging market characterized by declining sales and order intake. Net sales for the quarter amounted to SEK16,819 million, representing a 4.1% drop compared to SEK17,530 million in Q2 2024, with organic growth still slightly positive at 2.3% due to currency effects. The company achieved its highest-ever adjusted earnings, with adjusted EBITA reaching SEK3,001 million, an improvement from SEK2,932 million a year earlier. Earnings per share surged by 19% year-over-year to SEK4.87, compared to SEK4.08 in Q2 2024, while net income for the quarter increased to SEK2,014 million from SEK1,687 million in the prior year. The decline in revenue was mostly attributed to a significant 14% decrease in order intake, which totaled SEK16,299 million for the quarter, down from SEK18,920 million the previous year. This contraction was partly offset by growth in the service business and positive contributions from short-cycle transactional sectors. Gross profit margin strengthened, reaching 37.6% from 33.4% a year earlier, and the adjusted EBITA margin improved to 17.8%, up from 16.7% in Q2 2024, reflecting effective price and cost management amidst headwinds. Divisionally, the Marine segment stood out with robust margin gains, driven by the strong execution of its order book, though orders within the division declined sharply. The Food & Water division saw reduced sales but managed a slight uptick in order intake, while margins came under pressure due to lower execution rates and project delays. The Energy division was affected by a drop in both sales and orders; however, it benefited from signs of recovery in the HVAC and heat pump businesses, which were cited as near the end of their destocking cycle. Despite the headwinds, Alfa Laval maintained a strong financial position as net debt, excluding leases, declined to SEK4,625 million from SEK7,718 million the previous year, and the net debt-to-EBITDA ratio fell to 0.34. The company’s order book remained stable at SEK50.3 billion, supporting 8.8 months of sales at the current pace, and service orders continued to provide a consistent foundation for future revenues. For the outlook, Alfa Laval projected a sequential pickup in demand for Q3 2025, especially in the Energy division, while anticipating stability in the Marine segment and a seasonal slowdown in the Food & Water division. Management reiterated confidence in their growth strategy, highlighting plans for sustained investment in R&D and CapEx between €2.5-3.0 billion for the year to seize opportunities in an evolving global market environment. No signs of order cancellations were noted, and the company emphasized the attractive market conditions and resilience built into its service-driven model. #AlfaLaval #Q22025 #Earnings #FinancialResults #Profitability #Revenue #OrderIntake #Marine #Energy #FoodWater #AdjustedEBITA #EPS #NetIncome #GrossMargin #ServiceBusiness #InvestorUpdate #GrowthStrategy #CapEx #R&D #StockholmStockExchange #GlobalMarkets #InsideTicker