Indutrade AB (publ)

Q2 net sales increased 11% to a record SEK 9 billion, with organic growth of 5% and acquisition contribution of 6%; currency had no impact. Order intake rose 14% in total and 8% organically, and book-to-bill was 105%. EBITA increased 19% and the EBITA margin improved to 14.7% versus 13.7% last year; excluding a negative earnout revaluation, the margin would have been 14.9%. On the financial side, EPS grew 23% in the quarter, gross margin strengthened to 35.6% from 35.3%, operating cash flow rose 20%, and net debt/EBITDA was 1.7. For year to date, order intake is up 8%, net sales up 6%, gross margin is stronger, EBITDA margin is 14%, return on capital employed is 18%, and operating cash flow is up 10%. Management did not give formal quarterly or full-year numeric guidance, but said the second half outlook is cautiously optimistic, with a larger backlog, continued strong acquisition momentum, and market uncertainty still high.

Bo Annvik framed the quarter as broad-based and strong, emphasizing improved demand across most companies and segments, especially in medtech/pharma, energy, and parts of Life Science. He highlighted operational leverage, margin-accretive acquisitions, and the company’s ability to pass through cost increases to protect gross margins. His tone on the second half was positive but measured: he called the outlook “cautiously optimistic” and said uncertainty remains elevated, even as backlog and acquisition momentum look supportive.

Patrik Johnson focused on the financial quality of the quarter, pointing to gross margin strength, EBITDA/EBITA leverage, and better cash generation. He cited year-to-date order intake up 8%, net sales up 6%, EPS up 10% YTD, operating cash flow up 20% in Q2 and 10% YTD, and net debt/EBITDA at 1.7; he also noted net debt/equity at 55% and financial net debt at 1.2. He said the company remains in a strong financial position for continued acquisitions and organic growth, and noted S&P upgraded Indutrade’s outlook from stable to positive.

Analysts pressed on lead times, margin drivers, and M&A pacing. Management said parts of the order book, especially in Life Science and energy, carry longer lead times and should support sales in Q3 and Q4; on margin, they said the main driver was organic leverage, with acquisitions also helping, and gross margin rose slightly to 35.6%. On M&A, Bo said the pipeline is strong, internally sourced deal flow is improving, and they expect a good pace of acquisitions in the second half. They also addressed segment-specific issues: Infrastructure & Construction still needs more top-line growth after extensive cost actions, while Technology & Systems Solutions is being held back by a few UK companies undergoing turnaround work, with visible benefit expected later in the year.