Second quarter of 2025

• Consolidated sales decreased 8.8% to SEK 1,362.4 M (1,494.3).
• Organic growth amounted to –5.2% (–0.6), adjusted for acquired sales and currency effects between the years.
• Consolidated operating profit (EBITA) totaled SEK 178.2 M (216.9), with an operating margin (EBITA) of 13.1% (14.5).
• Profit after financial items amounted to SEK 136.6 M (211.6).
• Earnings per share amounted to SEK 4.00 (6.71) before and after dilution.

First half of 2025

• Consolidated sales decreased 10.4% to SEK 2,713.7 M (3,029.3).
• Organic growth amounted to –8.9% (2.7), adjusted for acquired sales and currency effects between the years.
• Consolidated operating profit (EBITA) totaled SEK 355.6 M (476.4), with an operating margin (EBITA) of 13.1% (15.7).
• Profit after financial items amounted to SEK 288.1 M (461.9).
• Earnings per share amounted to SEK 8.58 (14.54) before and after dilution.

Comments from VBG Group’s President & CEO Anders Erkén
During the second quarter of the year, net sales decreased by 9% to SEK 1,362 M (1,494) – a reflection of lower demand, primarily in North America. Adjusted for currency effects and acquisitions, the decrease was 5%. The strengthened SEK negatively impacted reported sales by 7.4%.

Despite a macroeconomic environment that remains turbulent and high comparative figures from the strong second quarter of 2024, VBG Group demonstrated financial stamina and good adaptability during the quarter. Through efficient cost control and routine improvements across the business, we maintained healthy gross profit margins.

Operating profit (EBITA) for the quarter amounted to SEK 178 M (217), with an EBITA margin of 13.1% (14.5). Earnings were positively impacted by non-recurring effects totaling SEK 6.2 M. A strengthened SEK resulted in negative translation effects on working capital, with an impact of SEK 5.2 M. Adjusted for these effects, the fall in profitability was primarily a result of lower sales volumes in the wake of sluggish demand, primarily in North America. Late in the quarter, we could see a gradual normalization of volumes on a par with the year-earlier period. Outside Europe and North America, sales increased 16% during the quarter.

Our divisions
Despite challenging market conditions, Truck & Trailer Equipment posted strong earnings in the second quarter. The division’s organic sales, adjusted for acquired sales and currency effects, performed positively.

Mobile Thermal Solutions’ sales volumes were negatively impacted by demand that remained weak in the compact segment for off-road vehicles, and by lower volumes in the segment for public transportation buses as a result of a major customer winding down its operation in the US. However, order bookings and sales performed well late in the quarter, primarily in North America.

Ringfeder Power Transmission reported a 10% decrease in sales, primarily the result of currency effects. After a cautious start to the year, the sales rate improved late in the quarter.

Three value-creating acquisitions in 2025
2025 started off with VBG Group’s acquisition, through Mobile Thermal Solutions, of the Brazilian company Italytec Imex Indústria e Comércio Ltda., a strategically important acquisition that broadens our customer offering and strengthens the Group’s footprint in Brazil and South America.

Early in the second quarter, VBG Group acquired, through its Truck & Trailer Equipment division, the Swedish company Ledson Lights AB, which strengthens the Group’s position in the accessories and aftermarket segments.

On July 1, 2025, VBG Group took yet another strategic step when Ringfeder Power Transmission acquired the German company M.A.T. Malmedie Antriebstechnik GmbH, one of the world’s leading manufacturers of specialized mechanical coupling technology and Snag Overload Systems (SOS) for industrial applications. This acquisition strengthens the Group’s global presence and expands our customer offering while creating growth opportunities in other parts of our product portfolio.

The future
The decision by the administration in the US to extend the pause on trade tariffs continues to promote macroeconomic uncertainty and increase the administrative burden. For VBG Group, the direct effects of the tariffs that were introduced during the second quarter are marginal, as a result of our introduction of price adjustments to offset the cost increases.

With a strong order book in combination with the three strategic acquisitions completed in the first half of 2025 – which are expected to generate approximately SEK 200 M in revenue in the second half of the year – my outlook on the future is positive.

VBG Group is currently a market leader in products and solutions. We are experts in select niches, and through our focused efforts on strategic acquisitions we are continuing to expand our customer base and grow as a global industrial Group.

Thank you for your continued confidence in VBG Group.