Indutrade AB (publ)

Reported net sales were SEK 9 billion, up 11% year over year, with 5% organic growth and 6% acquisition contribution; currency had no impact. Order intake increased 14% in total and 8% organically, and book-to-bill was 105%. EBITA increased 19% and the EBITA margin was 14.7% versus 13.7% last year; excluding the earnout revaluation, management said EBITA margin would have been 14.9%. Gross margin improved to 35.6% from 35.3%. Patrik Johnson said earnings per share rose 23% in the quarter and operating cash flow increased 20%; year to date, order intake was up 8%, net sales up 6%, and operating cash flow up 10%. For guidance, management did not give formal quarterly/full-year financial targets, but described the second half as “cautiously optimistic,” said deliveries from the larger order book will mostly land in Q3 and Q4, and expected a continued good acquisition pace in H2. The company also said its year-to-date EBITDA margin was 14%, in line with its financial target.

Bo Annvik’s message was that demand improved broadly, with especially strong momentum in Life Science and Process, Energy & Water, while Infrastructure & Construction lagged but is improving. He emphasized that the quarter’s strength was not driven by one-off extraordinary group-level events, but by order backlog conversion, price pass-through, operational leverage, and acquisitions. His tone was confident but measured, repeatedly calling the outlook “cautiously optimistic” and noting that market uncertainty remains high.

Patrik Johnson focused on the financial quality of the quarter: gross margin strengthened, EBITDA margin was strong, and year-to-date EBITDA margin was 14%, in line with the company’s target. He cited finance net down 4% in the quarter and 11% year to date due mainly to lower interest rates, tax costs up 22% in the quarter on higher profitability, and EPS up 23% in the quarter and 10% year to date. He also highlighted operating cash flow up 20% in the quarter, net debt/EBITDA at 1.7, net debt/equity at 55%, and said the financial position provides room for continued value-creative acquisitions and organic growth; S&P upgraded Indutrade’s outlook from stable to positive.

Analysts focused on lead times, margin drivers, and the sustainability of M&A. Management said parts of the order book have longer lead times, especially in Life Science and energy, with many related deliveries expected in Q3 and Q4; on margins, they said organic leverage was the biggest driver, while acquisitions also helped, and price-cost dynamics should remain fairly similar in H2. On M&A, Bo Annvik said the company is now less hesitant to close deals, has a strong pipeline, and expects a good pace in the second half, with more internally sourced opportunities building through relationship work and AI-generated target lists.