Vestum AB (VESTUM) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers. CEO Simon Gothberg, please go ahead. Hello everyone and welcome to our presentation of Vestum's interim report for Q2 2025. My name is Simon Gothberg, CEO of Vestum. I will today present the report myself as our CFO Olof Andersson had to be with his wife as they're expecting their fourth child any day now. Okay, let's have a look at some highlights from the quarter. We have continued to invest in growth both organically and through M&A. Organic growth was plus 4% while cash flow improved by some 50 million. Profitability was in line with last year as shown in the adjusted EBITDA margin of 10.1%. We've completed one acquisition in the quarter and also invested in increased capacity for several of our production companies. These investments have led to an increased leverage, which is now at 2.65 times reported EBTA. Moving on to the segments, starting with Flow Technology. Sales grew by 32%, mainly driven by acquisitions. We continue to see overall solid underlying demand across the segments. with some different characteristics depending on geography in the nordics we are generating both sales growth and improved profitability in the uk the market is currently preparing for the new five-year investment plan amp8 which came into effect in April 2025. The new plan includes over 100 billion of water infrastructure investments and will greatly benefit the segment in many years to come. That said, the market is a bit cautious in the short term as clients are currently in resource planning and allocation...