engcon AB (publ) (ENGCON_B) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and warm welcome to ENCOM's presentation for the second quarter of 2025. Thanks for joining us today. My name is Christer Blomgren. I'm the CEO at ENCOM and with me today is our CFO, Markus Asplund. We are eager to share some highlights and key numbers from our Q2 report. And after that, we will go into the Q&A where you can shoot your questions. Let's start with the positive highlights. We have had a really strong second quarter. Both net sales and order intake were at Q2 record levels. In fact, to find similar figures, we have to go back to our standout year, 2022. A big drive behind this growth has been the strong return of the Nordic region during the current digging season. We saw high activity and strong demand, especially because many contractors needed to replace aging excavators. and dealers had relatively low inventory levels coming into the season. It also was a solid tilt-rotator volume growth in Europe, especially in Germany and the Netherlands, a high number of tilt-rotator units were delivered to the market. It's a clear sign that we are changing the world of digging and doing it faster than ever. Of course, there were a few challenges too. The Swedish corona has strengthened sharply, which has put a pressure on our margins. And while pushing a large volume out to the market this quarter was part of our strategy, it did reduce our gross margin. We're also laying the foundation for long-term success within Engton. During the quarter, we kicked off an important initiative to develop our shared core values. These will guide how we lead and work together, and they'll help us build the strong, unified, and inclusive culture we need to reach our global ambitions. In the past, Encon have mostly been seen as a premium solution, the full package with all ...