Fiskars Oyj Abp

Reported Q2 comparable net sales increased 3%. Comparable EBIT rose from EUR 3 million last year to EUR 7.7 million this quarter. Adjusted EPS was -EUR 0.06, roughly flat versus last year’s -EUR 0.05. Free cash flow was EUR 30.4 million, up EUR 28 million year over year, and cash earnings per share almost doubled from EUR 29 to EUR 51. For the balance sheet, net debt/EBITDA was 3.42x at the end of Q2 versus 3.16x last year, while total liquidity was EUR 420 million. Management reaffirmed full-year guidance for comparable EBIT to improve from last year; no numeric next-quarter guidance was given.

Jyri Luomakoski framed the quarter as another step in a turnaround, emphasizing that it was the fourth consecutive growth quarter and that the improvement was driven mainly by Vita. He highlighted strong brands, the rollout of restructuring benefits, and confidence that second-half performance will be helped by SG&A savings already underway. At the same time, he was cautious on the external backdrop, pointing to limited visibility, persistent global uncertainty, and continued inventory-reduction work in Vita.

Jussi Siitonen focused on the mechanics behind the financial improvement: Vita sales rose 5.5%, EBIT improved by EUR 5 million, and group comparable EBIT increased to EUR 7.7 million. He said free cash flow reached EUR 30.4 million, with net working capital down over EUR 30 million and CapEx at EUR 7 million in Q2, less than half of last year’s level; first-half CapEx was EUR 12 million. He also noted net debt/EBITDA at 3.42x, liquidity of EUR 420 million, and a EUR 50 million tap issue to the existing EUR 200 million bond. On margin, he said Vita gross margin declined because of supply-chain actions to manage inventory and factory variances, not pricing pressure.

Analysts focused on whether Vita’s margin pressure would ease in H2, how confident management is in Fiskars BA growth, whether lower CapEx is structural, and how high inventory levels may affect write-down risk. Management said the gross-margin drag in Vita should look easier in H2 because the comparisons get easier and the production curtailment began about a year ago; they also said any further provisioning would depend on whether inventories can be reduced by year-end. On Fiskars BA, management said U.S. and some Northern European markets are growing, while Central Europe is weaker due to cautious consumers, and that lower CapEx is more structural than temporary because prior IT and tooling needs have been reduced and current capacity is adequate. They also said tariff-refund claims in the U.S. are too early to assess and are not included in guidance.