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AFRY Q2 Sales Beat Estimates, but Profitability Misses as Restructuring Ends
Summary
The Swedish engineering consultancy reported second-quarter net sales of SEK 6.51 billion, narrowly beating forecasts. However, adjusted EBITA fell short of analyst expectations as the company completed a major restructuring program and shifted its focus to organic growth.
Swedish engineering consultancy AFRY reported second-quarter net sales that slightly surpassed analyst expectations, though its profitability missed estimates as the company concluded a significant restructuring effort.
Q2 Performance
AFRY's net sales for the second quarter came in at SEK 6.51 billion, just ahead of the SEK 6.48 billion average estimate from four analysts. The figure represents a 2.4% decline compared to the same period last year. The company stated that calendar effects had a negative impact on both sales and earnings during the quarter.
On the profitability front, adjusted EBITA (Earnings Before Interest, Taxes, and Amortization) was SEK 434 million, falling short of the consensus forecast of SEK 473.88 million. The company also reported a final EBITA of SEK 379 million and an EBIT of SEK 336 million for the period.
AdStrategic Shift to Growth
AFRY announced the completion of its restructuring program, which was designed to optimize its business portfolio and adjust operational capacity. The company noted that it has a higher order backlog and an improved utilization rate, but stated these positive developments have not yet been reflected in its financial results.
With the restructuring now complete, AFRY said it is shifting its strategic focus toward achieving organic growth. The company aims to leverage this new phase to capture improvements in profitability going forward.
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