#Sweden #financial results #Lund #Alfa Laval #Q2 report

Alfa Laval AB: Interim Report for Q2 2025

Alfa Laval AB (publ) recently released their interim financial report for the second quarter of 2025, covering the period from April 1 to June 30. The report indicates several key highlights and business insights that reflect the company's current market position and future expectations.

Financial Highlights

• - Order Intake: The report noted a decline in order intake amounting to SEK 16.3 billion, down 14% from SEK 18.9 billion recorded in the same quarter last year. This decline includes an organic drop of 8%.
• - Net Sales: Conversely, the company experienced a slight decrease in net sales, which stood at SEK 16.8 billion, marking a 4% decrease from the previous year’s SEK 17.5 billion. An organic growth of 2% was reported in terms of sales.
• - Profit Margins: Adjusted EBITA rose by 2% to SEK 3.0 billion, translating into a higher profit margin of 17.8%, compared to 16.7% in the prior year.
• - Cash Flow: The cash flow from operating activities fell to SEK 2.2 billion, down from SEK 2.8 billion reported previously.
• - Earnings: Earnings per share also showed a positive trend, with a noted increase to SEK 4.87 from SEK 4.08.

Strategic Developments

One of the significant moves during this quarter was the completion of the acquisition of the cryogenic business from the French group Fives. This acquisition, finalized on July 7, 2025, aligns with Alfa Laval's strategy to strengthen its position in the market and diversify its product offerings.

Year-To-Date Performance

For the first half of 2025, the company reported an overall order intake decline of 6%, totaling to SEK 33.1 billion. However, net sales have remained resilient, with an increase of 6% to SEK 33.3 billion. The adjusted EBITA for the six-month period stands at SEK 5.9 billion, indicating a robust margin of 17.8%. The company's financial adaptability is evident with a notable return on capital employed of 24.4%, coupled with a reduction in net debt relative to EBITDA, now measuring 0.60 times.

Market Outlook

Looking ahead, Alfa Laval's management expressed a cautious yet optimistic outlook for the third quarter of 2025. The leadership anticipates that demand will exhibit a slight uptick compared to the previous quarter. This projection, stated in their prior outlook from April 2025, reflects a stabilizing market environment and the potential for renewed growth as business activities begin to normalize following any disruptive events.

Conclusion

Alfa Laval AB continues to navigate the complexities of the global market with strategic acquisitions and a focus on improving operational efficiencies. While the current figures represent challenges in order intake, the company's consistent sales growth, enhanced EBITA margins, and favorable earnings per share illustrate a resilient financial foundation for the future. Stakeholders will be keenly observing how the anticipated demand improvements in the upcoming quarter will impact the company's overall performance.

For further details, please visit Alfa Laval or contact their Investor Relations team for any inquiries.