Second quarter of 2025 in brief

• Sales totaled SEK 2,395 million (2,439)
• Operating profit (EBITA) increased to SEK 277 million (245)
• EBITA margin of 11.6% (10.0)
• Profit after tax was SEK 212 million (169)
• Earnings per share, basic and diluted, rose to SEK 0.79 (0.63)
• Cash flow from operating activities amounted to SEK 316 million (434)

The Group's organic growth amounted to 4% in the second quarter. At the same time, the EBITA margin strengthened by as much as 1.6 percentage points to 11.6% in relation to the comparative quarter. Strategic price adjustments, implemented cost adjustments and focused efforts throughout the entire supply chain are having the desired effect on a broad front, in terms of both sales and profit.

Business area performance

Medical Solutions sales amounted to SEK 1,354 million (1,365); adjusted for currency, this was an increase of 5%. Operating profit (EBITA) increased to SEK 170 million (149), and the EBITA margin rose to 12.6% (10.9). The Drug Delivery and Other market areas have exhibited good growth, while In vitro diagnostics (IVD) has had lower volumes compared to the previous year. Surgery had stable volumes after a period of inventory adjustments. The business area is investing in future growth through expansion in Hungary and in Poland, and by establishing operations in Malaysia.

Engineered Solutions sales amounted to SEK 1,044 million (1,077); adjusted for currency, this was an increase of 1%. Operating profit (EBITA) was SEK 117 million (108) and the EBITA margin rose to 11.2% (10.0). The Hygiene market area exhibited growth, and prior investments in Asia have led to a positive performance in Consumer Electronics. On the other hand, as expected, volumes in Automotive declined. The business area has decided to expand production in Malaysia, which enables further growth in Asia.

Volumes in Materials increased year on year, with a 6% rise in sales, adjusted for currency. Growth was lower than in the very strong first quarter, primarily due to the automotive segment, while Telecom performed well.

First six months of 2025 in brief

• Group sales totaled SEK 4,848 million (4,881) in the first half of 2025, which is an increase of 1% adjusted for currency.
• The Group’s operating profit (EBITA) rose to SEK 548 million (483).
• The EBITA margin was 11.3% (9.9).
• Cash flow from operating activities amounted to SEK 451 million (570)
• Net financial liabilities totaled SEK 1,038 million (1,107).
• The equity/assets ratio increased to 57% (54).
  

Comments from the CEO

Christer Wahlquist, President and CEO of Nolato AB, commented:

We have recently decided to expand production for both our business areas at a joint facility in Malaysia. This improves our ability to grow further in Asia, as well as our global production flexibility. It also reinforces our presence in the region, and we are harnessing the synergies that this joint initiative will offer. Production is scheduled to commence in the second half of 2026.

Although the geopolitical landscape and ongoing trade war create general uncertainty, Nolato stands well equipped. We have a strong financial position and a geographical presence that gives us both global capabilities and redundancy to direct business and production to the regions that best meet customers’ needs. We are thus also positive on the remainder of the current year.