Alfa Laval Corporate AB (ALFA) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to Alfa Laval's second quarter earnings call. Fredrik and I, we will run through the financials with you and then obviously we continue with the Q&A session. So with that, let me go straight to the financials. Financially, it was a strong quarter with an all-time high of adjusted earnings of just above 3 billion SEC and a 19% increase of the EPS to a new record level of 487 SEC. We had strong demand growth in many end markets with an all-time high in the rolling 12-month service business and new record levels in the transactional part of the business as a whole. This partly compensated for the anticipated normalization of demand for cargo pumping systems in the quarter compared to last year. The conversion of the record high order book was well executed in the quarter, especially in the marine division with a margin of 24%. Finally, we feel we have a solid order book for 2025 and well into 2026, still above 50 billion sec as we speak. Together with a good pace in the short cyclical business, it provides a stable base for the remaining of the year. Now let's move on to the energy division. It was a stable quarter with order intake and invoicing sequentially unchanged. The service was a bit weak in the quarter due to significant changes and investments in new warehousing and software solutions. With the internal challenges resolved and good market demand, the situation may improve in the next quarter for the Energy Division's service business. After two years of weak demand in the HEVAC segment, the quarter was a turning point and returned to growth supported by better heat pump demand as expected. Order intake was further supported by good volumes in the transactional business. Large projects were a bit slow to convert to orders, including for...