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Yahoo
18 hours ago
- Business
- Yahoo
Saab AB (SAABF) Q2 2025 Earnings Call Highlights: Record Sales Growth and Upgraded Guidance
Order Intake: 28 billion SEK, a 32% increase compared to the same quarter last year. Sales Growth: 30.4% year-over-year at the group level, marking the strongest second quarter ever. EBIT Growth: 48.5% increase at the group level, with a positive trend in EBIT margin reaching 9.4% over the last 12 months. Cash Flow: Negative 1.2 billion SEK for the first half of the year, an improvement from negative 4.2 billion SEK last year. Backlog: Increased by 8% year-over-year to 198 billion SEK, with 71% from Dynamics and Surveillance. EPS: Increased from 1.85 SEK to 2.83 SEK this quarter. Gross Margin: Declined due to higher corporate costs related to IT security and digitalization efforts. Net Liquidity Position: Positive, amounting to almost 700 million SEK. Equity to Asset Ratio: 37.7%, indicating a solid balance sheet. Guidance Upgrade: Sales growth guidance increased to 16-20% for 2025, up from 12-16%. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Saab AB (SAABF) reported a strong quarter with a 32% increase in order intake compared to the same quarter last year, reaching approximately 28 billion SEK. The company upgraded its guidance for growth from 12-16% to 16-20% for the year, reflecting confidence in its ability to deliver from its backlog. Saab AB (SAABF) achieved a significant EBIT margin improvement, growing more than the top line, with a positive trend reaching 9.4% on a rolling 12-month basis. The dynamics division experienced exceptional growth, with a 72% increase in deliveries compared to the previous year, driven by strong demand and capacity ramp-up. Saab AB (SAABF) is making strategic investments in R&D and capacity expansion, including new factories in India and the US, to meet increasing market demand and maintain competitiveness. Negative Points Despite improved cash flow from last year, Saab AB (SAABF) reported a negative cash flow for the first half of the year, attributed to high inventory levels and front-loaded investments. The aeronautics division faced a decrease in EBIT margin due to startup costs for the T7 program and increased R&D and marketing expenses. The underwater systems business unit is pulling down the profitability of Saabcockums due to ongoing development and certification challenges. Gross margin declined year-on-year, mainly due to higher corporate costs related to IT security and digitalization efforts. The company faces challenges in predicting the timing of mega deals, which are subject to political and parliamentary processes in various countries. Q & A Highlights Q: Can you clarify the dynamics margin and if it will remain slightly above mid-teens over time? A: Micael Johansson, President and CEO, confirmed that the dynamics segment should maintain mid-double-digit margins over time, despite quarterly fluctuations, due to a mix of frame agreements and competitive contracts. Q: How might the US putting the AUKUS pact with Australia on hold impact Saab's Australian submarine business? A: Johansson explained that Saab's Australian submarine business is primarily focused on supporting the existing Collins class submarines, which is a small part of their operations. The impact of the AUKUS pact delay on this business is unclear, but it is not a significant portion of their Australian operations. Q: With better-than-expected progress in the first half of 2025, why not reassess the 2027 guidance? A: Johansson stated that they will continuously assess midterm targets and plan to provide updates in 2026. They are confident in the current demand and order intake but will not provide specific guidance until then. Q: How did Saab achieve such strong results in the dynamics division this quarter? A: Johansson attributed the strong results to investments in automation and new facilities, such as an autonomous facility in Sweden and new factories in India and the US. These improvements have enhanced production capacity and efficiency. Q: Are you investing at a fast enough pace to meet demand and order intake in dynamics and surveillance? A: Johansson assured that Saab is forward-leaning in investments to meet capacity demands, both in production facilities and R&D. They are confident in their competitive position and are continuously improving their capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Sandvik: Interim report second quarter 2025
STOCKHOLM, July 16, 2025 /PRNewswire/ -- Order intake SEK 32,206 million (32,354) Order intake, at fixed exchange rates, increased by 10% Revenues SEK 29,700 million (31,419) Revenue growth, at fixed exchange rates increased by 4% Adjusted EBITA SEK 5,629 million (6,149) Adjusted EBITA margin 19.0% (19.6) Adjusted EBIT SEK 5,194 million (5,688) Adjusted EBIT margin 17.5% (18.1) Adjusted profit before tax SEK 4,855 million (5,124) Profit for the period SEK 3,216 million (3,462) Adjusted profit for the period SEK 3,713 million (3,897) Earnings per share, diluted SEK 2.56 (2.76) Adjusted earnings per share, diluted SEK 2.96 (3.10) Free operating cash flow SEK 5,090 million (4,198) Additional information may be obtained from Sandvik Investor Relations, phone +46 70 782 63 74 (Louise Tjeder). A webcast and conference call will be held on July 16, 2025, at 1:00 PM CEST. Information is available at Stockholm, July 16, 2025Sandvik Aktiebolag (publ) Stefan WidingPresident and CEO This information is information that Sandvik AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at about 11:30 AM CEST on July 16, 2025. This information was brought to you by Cision The following files are available for download: Interim Report Q2 2025 View original content: SOURCE Sandvik
