Ratos AB (publ)

Ratos reported net sales up 3.4% and adjusted EBITA of SEK 988 million, with a 17.3% margin and 14% EBITA growth. Adjusted EPS was SEK 1.97, up 20% year over year. Underlying cash flow grew 20% and cash conversion was more than 100%; reported cash flow was said to be up 40%. Management did not provide full quarterly or full-year financial guidance, but it said Q3 is expected to remain an important quarter and that the company will keep driving improvements under its Ratos 2030 strategy. Anna Vilogorac also said leverage ended at about 1.0x net debt/EBITDA after SEK 800 million of debt repayment, versus the company’s target range of 1.5x-2.5x.

Gustaf Salford framed Q2 as evidence that Ratos is executing on its strategy and investment-company model, with improved performance in most portfolio companies. He emphasized portfolio focus, add-on acquisitions, and building long-term board and operating capabilities, including new external chair appointments. His tone was constructive but measured: he highlighted strong areas like Diab and portfolio actions like the Sentia sell-down, while noting that industrial services remain in a challenging market and that divestment work on non-core consumer assets is still ongoing.

Anna Vilogorac focused on margin bridge items, cash flow, and capital structure. She said EBITDA growth was 14%, highlighted a 15% drop-through from organic growth, and noted that Sentia, the Expin disposal, FX, and Aibel all affected the margin bridge. She cited SEK 200 million from M&A insurance, about NOK 220 million of Sentia dividend income, and debt repayment of SEK 800 million, which brought leverage to about 1.0x net debt/EBITDA. She also said reported tax rate was 12%, while normalized tax is 17%-19%, and pointed to lower net financial items and a lower share of non-controlling interests as EPS supports.

Analyst Björn Olsson asked about Knightec’s sales decline and whether margins had troughed, and management said the industrial consulting market has stabilized rather than recovered, with ongoing cost restructuring, resource reallocation toward higher-growth segments like defense and energy, and some gross-margin pressure from adding COGS staff ahead of growth. He also asked about Diab’s momentum, and management said results are strong but should not be fully extrapolated because some benefits, including lower depreciation and pricing gains in wind, will fade over time. On consumer divestments, management said the priority is to follow the divestment path, while also keeping a plan B if attractive offers do not materialize.