• -18% org growth, orders -5% vs cons, adj. EBIT -29% vs cons
• Adj. gross margin slightly weaker, guides for strong H2 as expected
• New margin target already in cons, estimates -5-10% on 2025e EBIT

Q2 details

Sales SEK 427m (5% vs ABG 408m, -1% vs cons 421m). Adj. EBIT 60m (-29% vs ABG 85m, -29% vs cons 84m). Adj. EBIT margin 14.1% (ABG 20.7%, cons 20.0%). Order intake SEK 401m (7% vs ABG 375m, -5% vs cons 422m). Organic sales growth -18% (ABG -20%, cons -20%), gross margin 56.7% (vs ABG 61.0%, cons 60.6%) but 59.8% adjusting for a low-margin third party delivery in the quarter (which boosted sales by 5%).

Weak quarter but reiterates positive guidance for H2

Opex investments for future growth ahead of expectations continues (+11% vs ABG, +7% vs cons) and up 27% y-o-y, which drives the -48% adj. EBIT y-o-y and miss vs expectations. Raises EBIT margin target to >20% from >15%, as expected (vs cons EBIT margin 25-27% in 2026-27e). OCF of SEK -2m (-35m in Q2’24). On outlook, Invisio reiterates its comments that high activity will continue for many years, and full effects of higher military budgets expected from H2’25.

Consensus EBIT -5-10%

As a result of lower order intake and gross margin combined with higher costs and already strong growth recovery in H2 estimates, we expect consensus to reduce 2025e EBIT by 5-10%. Share to underperform the market given +42% YTD pre numbers. Conf call today at CET 10.00.