NCAB Posts January-June 2025 Results

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NCAB Group AB released its half-year report for January–June 2025, highlighting steady order intake growth despite currency headwinds and geopolitical uncertainty.

April-June

• Net sales decreased marginally to SEK 934.0 million (935.1). In USD, net sales increased 10%. For comparable units, net sales decreased 7% in SEK but increased 3% in USD.
• Order intake increased 5% to SEK 985.0 million (937.8), and in USD order intake increased 16%. Order intake for comparable decreased 2% in SEK but was 8% higher in USD. Book to bill amounted to 1.05.
• EBITA decreased to SEK 93.9 million (120.4), representing an EBITA margin of 10.0% (12.9). Exchange rates decreased EBITA with SEK 17 million and the EBITA margin with approximately 0.8 percentage points. The costs for NCAB’s new IT platform amounted to SEK 9.6 million (13.0), which include implementation and amortization for 2025.
• Cash flow from operating activities was SEK 93.6 million (101.2).
• Operating profit was SEK 78.3 million (105.5).
• Profit after tax was SEK 40.5 million (73.5).
• Earnings per share before and after dilution was SEK 0.22 (0.39).

January-June

• Net sales increased marginally to SEK 1,892.3 million (1,885.7). In USD, net sales increased 4%. For comparable units, net sales decreased 7% in SEK, and 3% in USD.
• Order intake increased 5% to SEK 1,998.7 million (1,907.5). In USD, order intake increased 9%. For comparable units, the decrease for order intake was 2% in SEK, while it increased by 1% in USD.
• EBITA decreased to SEK 193.9 million (263.0), representing an EBITA margin of 10.2% (13.9). Exchange rates decreased the EBITA margin with approximately 0.5 percentage points. The costs for NCAB’s new IT platform amounted to SEK 20.1 million (21.0), which include implementation and amortization for 2025.
• Cash flow from operating activities was SEK 146.8 million (194.1).
• Operating profit was SEK 161.0 million (232.8).
• Return on equity was 13.5% (26.0).
• Profit after tax was SEK 92.5 million (163.3).
• Earnings per share before and after dilution was SEK 0.49 (0.87).

Significant events during and after the quarter

• On 23 April, an agreement was signed to acquire 100% of the shares in B&B Leiterplattenservice GmbH in Germany.
• On 24 April, the Board of Directors of NCAB decided to withdraw the previously announced dividend proposal ahead of the Annual General Meeting.
• NCAB has refinanced its existing loans into a new five-year facility with improved terms and an option to extend the facility for future acquisitions of SEK 750 million.

Positive order intake, but weak USD created headwind

The increase in order intake from the first quarter continued into the second quarter. Year-on-year, order intake in the quarter improved organically by a healthy 8 per cent in USD, which is the main trading currency. Including acquisitions, order intake grew in USD by a full 16 per cent. The weaker US dollar however impacted Net sales and result negatively when translated into SEK. The net effect on gross profit was minus SEK 27 million and it affected EBITA by minus SEK 17 million.

It was a very eventful quarter due to the new US administration’s radical departure from previous trade policy. The trade war led to increased uncertainty and cautious behaviour in several markets, but most clearly in the USA.

The earnings trend in North America was good, linked to growth in net sales. Order intake during the quarter was weaker, partly because of the timing of larger orders, that this year came in during the first quarter. There was also some hesitance in the market because of new and changed tariffs. During the quarter, our new business system was implemented in the USA.

In Nordic, the positive order intake trend continued. Order intake grew by as much as 15 per cent despite the negative impact of the USD, while net sales increased by a more modest 4 per cent. In the quarter, currency revaluations and product mix had a negative impact on gross margin compared with the year-earlier period.

Europe continued to be impacted by the weak economy, despite the downturn bottoming out and a slight improvement being visible in order intake in some markets. In USD, order intake increased organically by 8 per cent. However, the uncertainty linked to the trade war with the USA is impeding any acceleration in demand. Nevertheless, it is positive to note that progress has been made in the aerospace focus area in terms of articles won.

East remains stable, although the effect of the weakening USD has adversely impacted figures in SEK. Order intake increased 12 per cent in USD and we are leveraging our strong factory base in high-tech.

Looking ahead, we are positive about opportunities to gain market share, both organically and through further acquisitions. The acquisition of B&B Leiterplattenservice in eastern Germany was finalised during the quarter, which will help to strengthen NCAB’s position in the market and contribute additional expertise. With our strong balance sheet and active pipeline, we look forward to completing additional acquisitions.

In today’s turbulent world, NCAB is a stable supplier with a local and global footprint, in both sales and purchasing. Our proactive efforts to develop a global, diverse and validated supplier base offers our customers security, stability and a high level of service as well as alternative production countries where required.​​​​​​