Release Date: August 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Storskogen Group AB (FRA:0VK) reported an adjusted EBITA margin of 10% for the quarter, marking the first time it has reached this level since the fall of 2021.
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The company successfully refinanced its bond, resulting in significantly lower interest costs, with no major maturities until 2027.
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Storskogen Group AB (FRA:0VK) has resumed acquisitions, supported by strong cash flows and a comfortable leverage position.
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The company’s services business area achieved a significant increase in profitability, with a margin improvement to 10.8% for the quarter.
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Recent acquisitions are aligned with investment themes such as digitalization and health, and are expected to deliver high margins and synergies.
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Organic sales growth for the quarter was slightly negative, and flat for the first half of 2025.
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Sales decreased by 9% compared to the same period last year, partly due to divestments.
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The cash flow from the second quarter was lower compared to the same period last year, primarily due to changes in working capital.
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The industry business area experienced a decline in adjusted EBITA by 11% in the second quarter, affected by FX headwinds and softer demand.
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The global environment remains uncertain, with currency movements and trade policy risks impacting market recovery predictions.
Q: Could you shed some light on the working capital headwinds in the quarter and the cash generation of these new orders? Should we expect the full working capital effect to be released in Q3 or more in Q4? A: Hi, Carl. The working capital tied to these orders are long-term, and we will see some effects of this release in Q3. However, the focus remains on maintaining a cash conversion rate around 70%. These are long-term profitable orders, and while some will be released during the next quarter, the emphasis is on continuing to work on cash conversion.
Q: Is it possible to give any magnitude of what portion will be released in Q3? A: It’s too early to tell. Our focus remains on maintaining a long-term 70% cash conversion rate.
Q: Have you seen any trends during the quarter worth acknowledging, especially with the tariff announcements? A: May was the toughest month due to uncertainties, impacting both industry and trade. In industry, a significant portion of the impact was from FX and customers hesitating to call off volumes. June was a better month compared to May.
