Bravida – Quarterly report April–June 2025

• Net sales decreased by 9 percent and amounted to SEK 6,974 (7,694) million
• Order backlog amounted to SEK 16,854 (17,559) million
• EBITA increased by 10 percent and amounted to SEK 378 (343) million
• EBITA margin increased and amounted to 5.4 (4.5) percent
• Profit after tax increased by 12 percent and amounted to SEK 269 (240) million
• Cash flow from operating activities amounted to SEK 123 (548) million
• Net debt amounted to SEK -3,131 (-2,518) million
• An acquisition was completed during the quarter that on an annual basis adds sales of approximately SEK 346 million
• Earnings per share before and after dilution increased by 13 percent and amounted to SEK 1.31 (1.16)

 

Comment from the CEO

Through our continued project selection, the EBITA margin improved in Sweden, Norway and Denmark. We are reporting an acceptable result in Denmark, where development is going according to plan, and I expect continued gradual improvement going forward. Although demand in the Nordics remains low, I can see that market activities are improving in many places and interesting customer discussions are ongoing. The order backlog in Norway and Denmark increased in the quarter.

 

Net sales and EBITA

It is pleasing that in a challenging market we can increase both margin and earnings despite the lower sales. Important factors for the margin development are our focus on margin before volume and the current project mix. Another important factor is our focus on careful project selection, cost control and pricing, as well as efficient production.

Over the past year, our restrictive project selection has led to lower turnover in both service and installation. This is a priority we are happy with in order to maintain a necessary balance between focus on profitability and risk exposure. The variation in the market is large between different geographies. Demand remains weak in the southern parts of Sweden and in the Finnish market, but also in other local markets. We are continuously working to adapt our resources to the current market situation.

The order backlog increased by almost SEK 1.3 billion in the quarter, driven by strong order intake in Denmark. The order situation ensures stable volume in the installation business in the coming quarters.

The weak market situation in southern Sweden continues to negatively impact sales and profitability in the Swedish operations. The operations in southern Sweden lost 18 percent of their volume compared to the second quarter of 2024, which corresponds to approximately SEK 230 million. Adjustments made to the organization in southern Sweden have stabilized the EBITA margin, which is still at a low level. The rest of the operations in Sweden are stable.

The Norwegian operations have improved their project margins, leading to an improved EBITA margin. Organic growth was negative as we had high production in a number of large projects in 2024. The project market in Norway remains challenging and it is important to follow our strategy, margin before volume.

The Danish operations continue to develop in a positive direction. In the quarter, profitability improved significantly and in line with my previously communicated expectations. I expect a continuous improvement in profitability in the coming quarters, as new orders have a good margin and sales from old loss-making projects gradually decrease. My assessment is that by 2025 we will increase the EBITA margin to close to 5 percent. 

The Finnish operation reduced sales by 15 percent, despite this loss in sales we manage to report acceptable profitability by adapting the organization and costs to the current market situation.

 

Cash flow

Cash flow from operating activities and cash generation deteriorated. This is mainly explained by an increase in accrued but unbilled revenue in a large infrastructure project with a public customer as the client. The agreement with the customer stipulates that certain milestones must be achieved before invoicing can take place, which I assess will be achieved during the second half of 2025.

 

Acquisitions

During the quarter, one acquisition was completed, which added annual sales of approximately SEK 346 million, and at the beginning of the third quarter, another acquisition was completed, which added annual sales of approximately SEK 45 million. As always, we focus on choosing the right acquisition candidates that have a suitable culture and are value-creating for Bravida. It is currently challenging to identify good acquisition targets, which is due to the weak and uncertain market situation, but I would like to emphasize that interesting acquisition discussions are ongoing.

 

Sustainability

At Bravida, we work long-term with sustainability to be a good supplier to our customers, a good employer and a leading player in the industry. I am very proud that the hard and important work we put into reducing work-related injuries is paying off. LTIFR improved and amounted to 5.2, which is better than the current target of 5.5. The electrification of the vehicle fleet reduces our own climate footprint and in the last 12 months we have reduced emissions from our vehicles by 15 percent and by 40 percent from 2020 in relation to turnover.

 

Future prospects

For Bravida, I believe that demand for service will remain stable. The installation volume will gradually improve and benefit from the need for renovations, investments in infrastructure, electrification and defense facilities. I note significantly better activity in the market with more inquiries and interesting discussions, not least in infrastructure. However, there is a large geographical difference in demand for installations in house construction. The market in southern Sweden and Finland remains weak, while the market situation in the rest of Sweden, Denmark and Norway is generally stable but with large geographical differences. We generally expect a continued uncertain and wait-and-see market in 2025, affected by the weak construction market and increased global unrest. For 2026–2027, the outlook is significantly brighter with increased demand for installations in new construction and renovation projects according to external forecasts.
 

Mattias Johansson
Stockholm in July 2025

 

 

The report will be presented at 09:30 by CEO and President Mattias Johansson and CFO Petra Vranjes. The presentation will be in English and can be followed online or by phone.

Link to webcast
https://bravida.events.inderes.com/q2-report-2025

Telephone conference

To participate in the telephone conference, please register via this link: https://conference.inderes.com/teleconference/?id=50052432
After registration, you will receive a telephone number and a conference ID to access the conference. There will be an opportunity to ask questions via the telephone conference.

The report and presentation will be available at: https://investors.bravida.com/sv/rapporter-och-presentationer