Alfa Laval AB (publ)

Reported Q2 order intake was just above SEK 22 billion, up 35.2% total and 28.5% organic, with 8.6% structural growth and about a 2% currency drag. Q2 sales were SEK 18.1 billion, up 7.7% total, 5.9% organic, almost 4% from acquired businesses, and down 2.1% from currency. Operating income was SEK 2.9 billion and EPS was SEK 4.91; year-to-date operating income was SEK 5.6 billion and EPS was SEK 9.5. Adjusted EBITA in Q2 was SEK 3.1 billion, with an EBITA margin of 17% (stable overall, but Energy saw some margin pressure). Backlog reached SEK 53.5 billion, with SEK 29.1 billion planned for delivery in 2026 and SEK 24.5 billion for 2027. For Q3, management guided CapEx up to SEK 1 billion, amortizations of SEK 170 million, and a tax rate of 24% to 26%; for full-year 2026, CapEx of SEK 2.5 billion to SEK 3 billion, amortizations of SEK 680 million, and tax of 24% to 26%. Management said Q3 order intake should be somewhat lower sequentially versus Q2, while not reflecting deteriorating market conditions.

Tom Erixon framed the quarter as evidence that Alfa Laval is still early in its SEK 100 billion growth plan for 2030, with solid demand across nearly all parts of the business. He emphasized major project wins in all three divisions, ongoing capacity investments, and the need to scale alongside key customers, especially in data centers. His tone was confident but measured: he said business conditions should remain positive in the short to medium term, while also warning that Q3 will be compared against an exceptionally strong Q2.

Fredrik Ekstrom highlighted record bookings, a book-to-bill of 1.23, and a backlog of SEK 53.5 billion, noting that the current order book supports continued invoicing growth. He said Q2 sales were SEK 18.1 billion and operating income was SEK 2.9 billion, with EPS of SEK 4.91 and adjusted EBITA margin of 17%; Q2 adjusted EBITA was SEK 3.1 billion, the third highest quarter on record. Cash flow from operating activities was SEK 2.4 billion in Q2 and SEK 3.6 billion year-to-date, while CapEx reached SEK 1 billion in the quarter; he also said net debt to EBITDA was 1.1 versus 0.92 at the prior year-end and that the company expects to be cash flow positive for the year.

Analysts focused heavily on whether data center orders are margin-dilutive, the size and durability of the data center run-rate, and how quickly capacity can ramp. Management said they do not expect general margin deterioration from data centers, that the LTM data center run-rate is around SEK 5 billion, and that current orders are being managed with an eye toward future capacity coming online in 2027 and beyond. Questions also probed Energy margin pressure, where management cited mix, provisions/reserves, reorganization costs, inflation, and currency, plus the two underperforming businesses in the ‘other’ category, which are being reviewed for possible further development or exit. On marine, management said LR-Tanker is a meaningful long-term opportunity but not yet the main driver, and that cargo pumping remains led by MR tankers.