Afry Ab (AFXXF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and warm welcome. My name is Linda Pålsson. I'm the CEO of AFRI and I will present our Q2 results together with our CFO Bo Sandström. Starting off with a summary of the second quarter, our work with the ongoing strategy review progressed according to plan. Our efforts during the quarter focused on implementing our new group structure, which has included a comprehensive restructuring of the organization, as we are taking steps now to improve efficiency. We will continue our work on optimizing the portfolio and addressing our cost base in the coming 12 months, which we will come back to a bit later in this presentation. At the same time as we're laying the foundation for profitable growth, we are navigating a challenging market. We see that market remains cautious due to the current uncertainty in the global economic environment. And while the pattern varies across segments and regions, this uncertainty is broadly affecting client decisions and investments. We also had a weak calendar in Q2, and this reflects in our result for the quarter as well. Our net sales declined compared to last year and was in addition to the weak calendar also impacted by a significant currency effect that had a negative impact on the growth. And while we had a total growth of minus 7.2, the organic growth adjusted for the calendar effects was minus 2.5%. Our EBITDA margin was also impacted by these effects, but we delivered an EBITDA margin excluding items affecting comparability of 6.6%, which actually was in line with the calendar Justin margin last year. And despite facing challenging market conditions in some segments, I am pleased that we continue to grow our order backlog, which increased both sequentially as well as year over year. That is very important to us and undersc...