Interim report January – June 2025

NET ASSET VALUE AND THE LATOUR SHARE

INDUSTRIAL OPERATIONS

The second quarter

INDUSTRIAL OPERATIONS

January - June

THE GROUP

INVESTMENT PORTFOLIO

EVENTS AFTER THE REPORTING PERIOD

¹ The calculation of the net asset value on 18 August was based on the value of the investment portfolio at 17.30 on 18 August and the same values as on 30 June were used for the unlisted portfolio.

Comments from the CEO
“The second quarter of the year was marked by continued uncertainty related to trade tariffs and macroeconomic conditions. Despite the challenges, the industrial operations’ order intake developed positively and continued to grow during the quarter, driven by both acquisitions and organic growth. In the markets where we operate, overall demand remains at a relatively healthy level, although it varies across regions and sectors. The uncertainty is, to some extent, influencing customer investment decisions, leading to longer decision-making processes. This is particularly affecting the project-based operations within Swegon, Nord-Lock Group and Caljan. However, we are seeing a mixed picture, with Nord-Lock Group reporting a record high quarter for order intake, Swegon is organically in line with the corresponding quarter last year and Caljan slowing down. Hultafors Group is affected by the generally weaker construction industry in Europe, and is slight lower compared with the same quarter last year. We remain confident that our operations are well-positioned to navigate the current market environment and, as in previous periods, we are fully prepared to respond to shifts in demand. 

During the summer, some clarification has been provided regarding US trade tariffs. However, uncertainty remains around which products and materials are exempt, as well as the outcome of ongoing negotiations with additional countries. In line with the first quarter of the year, we do not see any material economic impact from the tariffs during the second quarter. 11 per cent of the industrial operations’ total sales are in the US. Caljan, Hultafors Group, REAC within Latour Industries and Nord-Lock Group have slightly more trade exposure to the US. We have local production to some extent, but the figures also include exports to the US that will be affected. However, the overall impact is limited. Approximately half of total US sales are imported from Europe, representing 5 per cent of the industrial operations’ total turnover. This includes certain products that have, to date, been exempt from the 15 per cent tariffs. Imports from China account for 3 per cent of the industrial operations’ total turnover and especially affect Hultafors Group, which has so far been hardest hit by the tariffs with lower sales in the US. Caljan has continued to deliver on previously placed orders, but has noted a decline in order intake during the quarter, partly as a consequence of the tariffs. We will try to pass any additional costs incurred because of tariffs to the customer to the extent possible.

During the second quarter, total order intake grew by 9 per cent, 3 per cent of which was organic. Net sales grew by 9 per cent, 2 per cent of which was organic. New acquisitions boosted order intake by 11 per cent and net sales by 12 per cent. By the end of the quarter, the order book had increased to SEK 6,854 m, which ensures a good invoicing trend in the coming quarters. Adjusted operating profit increased to SEK 989 m (947 m) with an operating margin of 13.9 (14.5) per cent. We are maintaining a good cost control, but significant fluctuations in exchange rates are adversely affecting the gross margin in some parts of the operations. Cash flow largely follows the normal seasonal pattern and amounts to SEK 858 m (819 m) for operating activities.

We are continuing to make long-term and forward-looking investments in both new and existing businesses. During the quarter, Hultafors Group invested in increased production capacity in Europe by acquiring an existing fleet of machinery in Latvia. We regularly invest in our factories, in product development and digitalisation and, most importantly, in our employees to bolster future growth. Sustainability continues to be a core priority for us. We believe that being in the forefront is essential for being long-term relevant and delivering strong returns to our shareholders.

Due to the current uncertainty, acquisition activity was somewhat lower in the second quarter. Latour’s financial strength do allow us to invest despite an economic downturn, but always in a prudent and responsible manner. Two great acquisitions have been made within the wholly-owned operations. One for Innovalift and one for Nord-Lock Group. These acquisitions, together with the five that were made during the first quarter, contribute just over SEK 1.8 billion to annual revenue growth. More information about our acquisitions can be found on page 4.

The stock market was characterised by subdued activity in the first six months of the year. During the period, the net asset value of Latour decreased by 1.9 per cent and the value of our portfolio of listed holdings decreased by 4.2 per cent. By comparison, the benchmark index SIXRX increased by 2.3 per cent. All of our listed holdings have now submitted their Q2 statements and overall, these are good reports given the global situation. The market value of the portfolio of listed holdings has increased again since mid-year, driven by, among others, ASSA ABLOY. This is also reflected in Latour’s net asset value. The share price was SEK 212 when the stock exchange closed yesterday, equating to an increase of 0.7 per cent since the beginning of the year.”

Johan Hjertonsson
President and CEO

For further information please contact:
Johan Hjertonsson, President and CEO, Tel. +46 702-29 77 93 or
Mikael Johnsson Albrektsson, CFO, Tel. +46 733 23 36 06

Conference call
President and CEO Johan Hjertonsson and CFO Mikael Johnsson Albrektsson present the report and answers to questions in a webcasted teleconference today at 10.00 AM (CEST). The conference call will be held in English.

Webcast
Via the webcast you are able to ask written questions.
If you wish to participate via webcast, please use the link:
https://latour.events.inderes.com/q2-report-2025

Teleconference
You can ask questions verbally via the teleconference.
If you wish to participate via teleconference, please register on the link below.
After registration you will be provided phone numbers and a conference ID to access the conference.
https://conference.inderes.com/teleconference/?id=50051327

The information contained in this report constitutes information which Investment AB Latour (publ) is required to disclose under the EU Market Abuse Regulation. The information was provided by the above contact persons for publication on 19 August 2025 at 08.30 CEST.

Bifogade filer