Instalco AB (publ) (INSTAL) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everyone to this presentation of Instalco's report for the second quarter of 2025. My name is Robert Bohman, the CEO of Instalco. With me today, I have our CFO, Kristina Kasberg, and Per Sjöström, current chairman and soon to be interim CEO. As usual, let's start with a brief overview of Instalco today. Instalco is one of the leading installation groups in Sweden, Norway and Finland, and also with a presence in Germany. Our decentralized model is a core strength, empowering our more than 150 local companies to act independently while benefiting from strong governance and shared tools. With more than 6,000 employees across the group, we support the green transformation every day. And the demand for our services continue to be underpinned by powerful long-term market trends. First, a quick glance at our last 12 months' numbers. Net sales amounted to 13.6 billion, and we ended the quarter with an order backlog of 9.3 billion, which represents a steady book to build of close to 70%. When adjusting for one-off costs taken in the past three quarters, our EBITDA amounted to 871 million, corresponding to a margin of 6.4%. We're not satisfied with the margin, even if it's an improvement sequentially, We continue to take firm actions and strengthen it. In a market where many small and mid-sized companies and competitors are going out of business, our stability is a clear sign of our resilience. A key part of this resilience is how quickly our subsidiaries have shifted focus towards service. This has helped offset weaker demands in projects over the past years. In Q2, service remained strong and accounted for 36% of our net sales. We also had a very strong cash flow in Q2, which brought our last 12 months cash flow from operations to above a billion SEK, even despite ou...