AFRY reported second-quarter net sales of SEK 6.51 billion, a figure that slightly surpassed the SEK 6.48 billion average estimate compiled from four analysts. The reported sales level nonetheless represented a 2.4% decline compared with the same period a year earlier.
On profitability, adjusted EBITA for the quarter was SEK 434 million, below the SEK 473.88 million consensus estimate from four analysts. The company also reported an unadjusted EBITA of SEK 379 million and an EBIT of SEK 336 million for the period.
The group said it has completed a restructuring program intended to optimise its portfolio and to adjust capacity. Management noted a higher order backlog and an improved utilisation rate following the programme, but cautioned that those operational gains have not yet translated into the financial figures for the quarter.
AFRY pointed to calendar effects as a negative influence on both net sales and EBITA during the quarter. The company added that, having closed the restructuring phase, it is shifting emphasis to organic growth as the route to capture improvements in profitability.
The quarter’s results therefore present a mixed picture: sales narrowly exceeded analyst expectations while adjusted earnings metrics missed the consensus. Operational indicators cited by the company - backlog and utilisation - were described as stronger but remain unreflected in reported revenues and adjusted earnings for the period.
Going forward, AFRY has identified organic growth as the immediate strategic priority following completion of its portfolio and capacity adjustments. The company emphasised that the financial impact from the more favourable backlog and utilisation will be monitored as subsequent reporting periods capture those changes.
Key financials (reported):
- Net sales: SEK 6.51 billion (vs. SEK 6.48 billion average estimate)
- Year-on-year sales change: down 2.4%
- Adjusted EBITA: SEK 434 million (consensus SEK 473.88 million)
- Reported EBITA: SEK 379 million
- EBIT: SEK 336 million
The company’s statement stresses that while restructuring work is complete, the timing of when operational improvements are reflected in results has created a lag between internal performance indicators and the reported financials for the quarter.