Loomis Reports Strong Growth and Improved Margins in 2025 Interim Review

Loomis Interim Report January - June 2025

Loomis AB recently released its interim report for the first half of 2025, showcasing a period marked by notable organic growth and a robust operating margin. The company recorded revenues of SEK 7.4 billion, representing a 3.8% organic growth despite facing pressures from currency fluctuations. The results demonstrated Loomis’s ability to improve efficiency and retain a favorable business mix, contributing to a record operating margin of 12.7%, the highest achieved for a second quarter in the company’s history.

Financial Highlights

In Q2, Loomis reported revenues of SEK 7,407 million, showing a decrease of 3.0% compared to the same quarter last year. The revenue growth resulted from both organic growth of 3.8% and contributions from acquisitions. Notably, currency exchange rates had a detrimental effect, reducing revenue by 7.9% across all segments.

The operating income, or EBITA, for the quarter rose to SEK 944 million, up from SEK 887 million in the previous year, reflecting increased operating margins amid the challenges. The operating margin for EBITA rose to 12.7%, achieving a significant improvement compared to 11.6% in Q2 2024.

Income before taxes climbed to SEK 664 million, a notable increase from SEK 550 million last year. With these positive results, basic earnings per share also saw a significant rise from SEK 5.65 to SEK 7.01, marking an impressive 24% growth.

Operational Insights

Loomis experienced notable cash flow from operating activities of SEK 550 million in the quarter. However, this was also impacted by changes in working capital, leading to a cash flow level that was 58% of operating income. The challenges in cash flow were also highlighted by a hefty drop from SEK 1,113 million in the same quarter last year, hinting at underlying operational adjustments that Loomis is making.

The company has made a strategic move by repurchasing 535,300 shares valued at SEK 200 million during the second quarter. It indicates Loomis's commitment to enhancing shareholder value. Furthermore, the board has resolved to continue its buyback strategy in the upcoming third quarter of 2025.

Loomis announced the completion of its acquisition of Burroughs, Inc. as of June 1, 2025, further solidifying its presence in the market. Post-quarter, Loomis expanded its portfolio with acquisitions of Cash Central and Sighore-ICS, and has also entered agreements to acquire Kipfer-Logistik, reflecting the company's ongoing strategic growth initiatives.

Looking Ahead

Despite external challenges, Loomis continues to demonstrate resilience, capitalizing on a favorable business mix and focused efficiencies. The management remains optimistic about sustaining this trajectory of growth and improving margins in the coming quarters. The corporate commitment to strategic acquisitions and share repurchases underlines Loomis's proactive approach to strengthen its market position while delivering shareholder value.

Loomis AB's impressive performance in H1 2025 signals a strong foundation for future growth, positioning the company to navigate upcoming challenges effectively, while supporting expansion in its international operations.

For further insights and information, interested parties are encouraged to visit Loomis’s official website at www.loomis.com.