Kalmar’s half-year financial report January–June 2025: Strong performance and order intake in the second quarter
Kalmar’s half-year financial report January–June 2025: Strong performance and order intake in the second quarter
- Overall favourable demand environment led to continued strong order intake
- Equipment segment orders increased by 28 percent year-on-year
- Resilient comparable operating profit margin, 13.1 percent, supported by strong equipment profitability of 13.9 percent
- Trade tensions increasing uncertainty of the global growth outlook
- Guidance for 2025 unchanged.
President & CEO Sami Niiranen comments: The second quarter of 2025 was a strong quarter for Kalmar despite increased trade tensions and a challenging geopolitical landscape. I’m proud of Kalmar’s performance, continued strong order intake and steady progress of key strategic initiatives. We delivered a robust quarter with a resilient comparable operating profit margin of 13.1 percent, underpinned by strong equipment profitability of 13.9 percent. This solid performance was achieved amidst an overall favourable global demand environment, though it became somewhat subdued in the Americas towards the end of the quarter. We also communicated several key achievements that support our journey towards sustainable and profitable growth.
Orders received amounted to EUR 450 million, reflecting positive activity and growth in both Equipment and Services. The order book remained on a good level. Despite prevailing uncertainties, the demand picture overall was favourable during the quarter. In ports and terminals the demand remained strong globally. Overall, we saw strong growth in Europe and solid performance in AMEA4. However, the US distribution end-customer segment demand was hampered by increased market uncertainty.
Kalmar’s financial performance for the second quarter was solid. Sales returned to modest growth, even with some softness in Americas. Our focus on commercial and operational excellence has allowed us to maintain strong profitability. The comparable operating profit amounted to EUR 54.9 million. Cash flow from operations before finance items and taxes had quarterly fluctuations due to timing of large orders and was EUR 21.9 million in the second quarter while last twelve months cash conversion stayed strong at 95 percent. Net debt has decreased by 42 percent during the last year from EUR 157 million to EUR 91 million. Our leverage is at a healthy 0.4x. The Driving Excellence initiative has progressed very well, securing approximately EUR 16 million of annualised gross efficiency improvements during the first half of 2025. A majority of the improvements secured so far originate from successful sourcing activities.
While the Q2 performance was strong, the global landscape continues to be volatile. The world today presents an increased level of uncertainties related to tariffs, ongoing geopolitical tensions, and the global growth outlook. It is still difficult to draw definitive conclusions on how these factors will affect our industry, the demand environment, and global trade. However, we are monitoring the situation closely and have implemented tariff surcharges or tariff related price adjustments across divisions to a majority of our customers. We are prepared to continue to act swiftly if needed.
During the second quarter, our strategic focus on innovation and sustainability yielded significant results, with our eco portfolio maintaining a high share of sales at 44%. We were proud to announce that the Science Based Targets initiative (SBTi) has approved Kalmar’s near- and long-term science-based emissions reduction targets, verifying our net-zero science-based target by 2045. These ambitious targets align with the Paris Agreement, solidifying Kalmar’s commitment to limiting global temperature rise to 1.5°C.
In terms of product and service innovation, we introduced several significant advancements related to OEM and equipment-type agnostic automation systems, service driven digital applications and second-generation lithium-ion (Li-ion) battery solutions for our electrically powered equipment including reachstackers, empty container handlers and forklifts.
Moving forward, uncertainties, especially concerning global growth and trade tensions, remain. We keep our guidance for 2025 unchanged. Our focus remains steadfast on executing our strategy, staying close to our customers, and continuing to deliver the best heavy material handling solutions globally. We are on a good track with a strong first half-year performance. Our extensive reach, with an installed base of 68,000 machines and presence in over 120 countries, remains a significant asset in driving future service growth through innovative offerings and digital solutions.