BE Group Interim report January – June 2025

Second quarter

• Net sales decreased by 18% to SEK 1,045 M (1,272)
• The underlying operating result amounted to SEK -36 M (18)
• The period was affected by items affecting comparability of SEK -463 M (-) mainly related to write-down of goodwill and capitalized expenses for a new business system and the restructuring of business area Sweden & Poland
• The operating result amounted to SEK -492 M (11), including inventory gains and losses of SEK 7 M (-7)
• Result after tax amounted to SEK -458 M (1)
• Cash flow from operating activities amounted to SEK -4 M (21)
• Earnings per share amounted to SEK -35.26 (0.13)

After the reporting period

• The company has entered into an updated credit agreement with SEB for the company’s revolving credit facility of SEK 775 M. The credit agreement replaces previous loan agreement and has a term of three years with the possibility of an extension of another two years. The credit agreement is conditional upon the company conducting a rights issue and the Board of Directors has therefore resolved, subject to approval by the Annual General Meeting, to carry out a secured rights issue of approximately SEK 143 M. Subscription price is set at SEK 22 per share, and two existing shares entitle the holder to subscribe for one new share.

Statement from the CEO
In the second quarter, net sales fell by 18% to SEK 1,045 M (1,272), which is mainly attributable to tough market conditions, lower prices and continued challenges in the Finnish operations following the transition to a new business system in early March. All in all, this means that the underlying result amounted to SEK -36 M (18). Items affecting comparability, primarily impairment of goodwill but also write-down of capitalized expenses for the new business system and restructuring of business area Sweden & Poland, negatively impact earnings by SEK -463 M, of which impairment of goodwill amounts to SEK -409 M. The goodwill items are related to historical acquisitions in the Swedish and Finnish operations and do not reflect the current situation and business environment.

The transfer of the Polish operations to Sweden and Finland and the transfer of production from Arvika to Norrköping are essentially concluded. Both will have a positive impact on earnings going forward.

Updated loan agreement and secured rights issue
A new long-term loan agreement has been signed with SEB. The agreement entails an obligation for BE Group to carry out a rights issue comprising of approximately SEK 143 M, which the Board of Directors has approved. The issue, secured by the company’s two principal shareholders, AB Traction and Svedulf Fastighets AB, is aimed at strengthening the balance sheet and thereby providing better stability and financial flexibility.

Outlook
In the second quarter of 2025, the steel market in the Nordic region and Europe continued to be characterized by uncertainty, low demand and increasing import pressure, which led to falling steel prices for both flat and long products. After a brief increase in April, prices fell back in May and June. The drop in prices is attributable to weak demand in both construction and industry, high inventories and increased imports from non-EU countries. Despite increased production costs, especially for energy, steel producers have been unable to maintain price levels. A possible stabilisation is expected in the autumn, as trade policy measures within the EU have an impact.

Demand in construction has continuously improved from very low levels and is expected to continue improving although slowly. Demand from industry is expected to remain under pressure but is supported by some major customers who have indicated increased demand in the second half of the year.

Our focus
The most important thing at the moment is to implement the developed action plan in Finland focusing on increased efficiency, improved delivery capacity and increased customer satisfaction to regain lost tonnage while continuing to implement the group-wide savings program announced earlier. As I usually say, a lot of steel is used even in bad times and it is important to maintain a high level of market activity and to ensure a good margin in every single transaction.

An important message to the market in the second half of the year is the launch of BELOW which is BE Group’s new brand for low carbon steel. An example of this is that we have lowered our emissions on long products with approximately 40% by actively choosing suppliers with very low CO₂ emissions. As a part of BELOW we have also launched a climate calculator where the customer is able to track its climate impact in the e-commerce solution and generate a climate report.

Peter Andersson, President and CEO

For further information, please contact:
Peter Andersson, President and CEO
Tel: +46 706 53 76 55, email: peter.andersson@begroup.com

Christoffer Franzén, CFO
Tel: +46 705 46 90 05, email: christoffer.franzen@begroup.com

This information is information that BE Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 a.m. CEST on July 15, 2025.

BE Group AB (publ), which is listed on the Nasdaq Stockholm exchange, is a leading independent steel distributor that stores and processes steel, stainless steel, and aluminium for customers primarily in the construction and manufacturing industries. Through the company’s production services, customers can order customized steel components to optimize their production processes. In 2024, the Group reported sales of SEK 4.7 billion. BE Group has approximately 560 employees, with Sweden and Finland as its largest markets. The headquarters is located in Malmö, Sweden. Read more about BE Group at www.begroup.com.

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