Alfa Laval Corporate AB

Order intake was just above SEK 22 billion in Q2, up 35.2% total, including 28.5% organic growth and 8.6% from acquisitions/structure, with a negative currency impact of almost 2%. Sales/invoicing were SEK 18.1 billion, up 7.7% total and 5.9% organic. Operating income was SEK 2.9 billion, EPS was SEK 4.91, and adjusted EBITA was SEK 3.1 billion with an EBITA margin of 17%; management also said year-to-date operating income was SEK 5.6 billion and EPS was SEK 9.5. The order book reached SEK 53.5 billion, with SEK 29.1 billion planned for delivery in 2026 and SEK 24.5 billion booked for 2027. For Q3, guidance was CapEx up to SEK 1 billion, amortizations of SEK 170 million, and a tax rate of 24% to 26%; full-year guidance was CapEx of SEK 2.5 billion to SEK 3 billion, amortizations of SEK 680 million, and a tax rate of 24% to 26%.

Tom Erixon said the quarter showed solid demand across almost all parts of the business and marked another step toward the company’s SEK 100 billion growth plan for 2030. He highlighted major project wins in all three divisions, continued investments in products and capacity, and said the main challenge is scaling with leading customers, especially in data centers. On outlook, he said business conditions remain positive in the short to medium term, with Q3 expected to be somewhat lower sequentially mainly because Q2 was exceptionally strong.

Fredrik Ekstrom emphasized the record order bookings, with first-half order intake of SEK 39.8 billion, up 16.4%, and a backlog of SEK 53.5 billion. He noted Q2 sales of SEK 18.1 billion, operating income of SEK 2.9 billion, EPS of SEK 4.91, and an adjusted EBITA margin of 17%, while also pointing out SEK 209 million of positive currency impact, SEK 75 million of one-off reorganization costs, and margin pressure from provisions, reserves, mix, inflation, and acquisition effects. Cash flow from operating activities was SEK 2.4 billion in Q2, CapEx was SEK 1 billion in the quarter, net debt/EBITDA was 1.1, and he said the company expects to be cash flow positive for the year.

Analysts focused heavily on data centers, asking whether those orders are margin dilutive, how high the run-rate is, and whether Alfa Laval is winning share. Management said it does not expect general margin deterioration from data centers, said the company is very confident its market share increased this year, and described Alfa Laval as a go-to anchor partner that is helping customers scale. Questions also covered Energy division margins, long-range tanker growth, and underperforming businesses in the group; management pointed to mix, provisions, reorganization, inflation, and currency for Energy, said the LR-tanker opportunity is meaningful but not the lion’s share yet, and said the weaker businesses are being reviewed for development or possible exit.