Robust Performance in Q2
Loomis has showcased a remarkable performance in the second quarter with revenues hitting SEK 7.4 billion, indicating an organic growth of 3.8 percent. However, it’s essential to point out that acquisitions played a role in this growth. The strengthened Swedish Krona had a negative impact on revenue across all segments.
Operating Margin Highlights
The company achieved an impressive operating margin of 12.7 percent, up from 11.6 percent, marking the highest margin for a second quarter in its history. This growth resulted in substantial earnings per share, reaching SEK 7.01 compared to SEK 5.65 from the previous year. The cash flow from operations also demonstrated outstanding performance, exceeding 100 percent of operating income on a rolling twelve-month basis.
Financial Breakdown for Q2
Revenue Analysis
For the quarter, Loomis reported a revenue of SEK 7,407 million, representing a decline of 3.0 percent compared to the previous year, where it recorded growth of 8.0 percent. Although organic growth was at 3.8 percent, the impact of acquisitions added an additional 1.0 percent to the growth figures. Currency exchange rates had a more profound adverse effect on the revenue, tallying a negative 7.9 percent.
Operating Income Insights
In terms of operating income, the EBITA for the quarter amounted to SEK 944 million, an increase from SEK 887 million. This brings the EBITA margin to an attractive 12.7 percent, indicating a healthy growth trend for Loomis.
Adjustments and Comparisons
Examining the operating income before items affecting comparability, Loomis recorded SEK 882 million. The operating margin before items affecting comparability stood at 11.9 percent. Regarding items that affected comparability during the quarter, they totaled SEK -68 million, primarily due to restructuring within segments across Europe and Latin America.
Taxation and Net Income
Income before taxes reached SEK 664 million, compared to SEK 550 million in the previous year. With net income rising to SEK 478 million from 396 million, Loomis has showcased a robust financial stance.
Earnings per Share
Basic earnings per share climbed to SEK 7.01, while diluted earnings per share were 6.99. This improvement emphasizes Loomis's commitment to delivering shareholder value.
Cash Flow Details
Cash flow from operating activities amounted to SEK 550 million, which reflects a decrease from SEK 1,113 million due to alterations in working capital. This left cash flow from operating activities at 58 percent of operating income (EBITA).
Share Repurchases and Acquisition Activities
During the quarter, Loomis repurchased 535,300 shares for a total of SEK 200 million, thereby signaling confidence in its long-term growth strategy. The Board of Directors has also expressed intentions to continue share repurchases into the subsequent quarter.
Another significant milestone was the completion of the acquisition of Burroughs, Inc. on June 1, 2025. Additionally, Loomis has made further acquisitions by including Cash Central and Sighore-ICS after the second quarter ended and has also signed an agreement to acquire Kipfer-Logistik, thereby expanding its market reach.
Frequently Asked Questions
What were the total revenues for Loomis in Q2?
The total revenues reached SEK 7.4 billion during the second quarter.
How did the organic growth compare to last year?
The organic growth was 3.8 percent, compared to 7.0 percent from the previous year.
What was the operating margin achieved in Q2?
The operating margin reached 12.7 percent, marking a new record for a second quarter.
Did Loomis engage in any share repurchases in this quarter?
Yes, Loomis repurchased 535,300 shares for SEK 200 million.
What new acquisitions did Loomis announce recently?
Loomis acquired Cash Central, Sighore-ICS, and has also announced plans to acquire Kipfer-Logistik.
