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Introduction & Market Context
COOR Service Management AB (STO:COOR) presented its Q2 2025 interim results on July 14, 2025, revealing a return to positive organic growth and improved profitability metrics. The company’s stock responded favorably, rising 5.82% to 46.56 SEK following the presentation, continuing its recovery from the 52-week low of 29.6 SEK.
The facility management services provider demonstrated notable improvement from its challenging Q1 2025 performance, when it reported an earnings miss with negative organic growth of -2%. The Q2 results suggest COOR’s operational improvements and strategic initiatives are beginning to yield positive outcomes.
Quarterly Performance Highlights
COOR reported organic growth of 3% in Q2 2025, a significant improvement from the -1% recorded in the same period last year. The company’s adjusted EBITA margin also improved slightly to 5.2%, compared to 5.1% in Q2 2024, while net sales increased to 3,199 million SEK from 3,180 million SEK in the prior year.
As shown in the following comprehensive financial overview:
Net income rose to 65 million SEK, up from 60 million SEK in Q2 2024, representing a 5 million SEK increase. The company’s adjusted EBITA reached 165 million SEK, compared to 161 million SEK in the same quarter last year.
COOR’s cash conversion rate improved to 88% in Q2 2025 on an LTM basis, though this remains below the company’s target of >90% and slightly lower than the 92% reported in Q2 2024. The company attributes this improvement to a restored net working capital position.
The following chart illustrates COOR’s performance against its mid-to-long-term targets:
Segment Performance
COOR’s performance varied significantly across its Nordic markets, with Norway emerging as the standout performer. The Norwegian operations, which account for 18% of net sales, delivered exceptional organic growth of 23.2% in Q2 2025, compared to 11.4% in the same period last year. This growth was primarily driven by unusually high variable volumes in the energy sector, resulting in an improved adjusted EBITA margin of 5.4%, up from 4.6% in Q2 2024.
Sweden, COOR’s largest market representing 54% of net sales, experienced a slight decline with organic growth of -0.8%, though this was an improvement from the -2.8% reported in Q2 2024. The Swedish operations maintained a strong adjusted EBITA margin of 9.1%, slightly down from 9.5% in the previous year.
Denmark, accounting for 23% of net sales, continued to face challenges with organic growth of -2.9%, though this represented an improvement from -4.4% in Q2 2024. The adjusted EBITA margin declined to 4.0% from 4.5% in the prior year, with management noting a continued focus on improving governance in this region.
Finland, COOR’s smallest market at 5% of net sales, reported organic growth of -1.1% compared to 0.2% in Q2 2024, with a slightly improved adjusted EBITA margin of 1.7% versus 1.5% in the prior year.
Strategic Initiatives
COOR reported positive developments in its contract portfolio during the first half of 2025, with new contracts awarded totaling 299 million SEK against contracts ended of 105 million SEK, resulting in a net positive change of 193 million SEK. The company’s contract maturity profile shows a balanced distribution, with only 12% of contracts expiring in 2025.
The following chart illustrates COOR’s contract concentration and maturity:
Key contract extensions highlighted in the presentation include the renewal of the integrated facility management (IFM) contract with Volvo (OTC:VLVLY) Cars. The company also secured new property and cleaning contracts with Region Gävleborg, the University in Oslo, Askøy Municipality, and Statkraft.
CEO Ola Klingenborg noted that previously announced changes to the central staff organization have been successfully completed. This organizational restructuring aligns with information from the Q1 earnings call, which indicated expected annual cost savings of approximately 120 million SEK.
Cash Flow and Financial Position
COOR’s improved cash management is evident in its cash conversion rate of 88%, up from 81% in Q1 2025, though still below the 92% achieved in Q2 2024. The company’s net debt leverage stands at 2.9x, within its target of <3.0x but slightly higher than the 2.7x reported in Q2 2024.
The following chart illustrates the company’s cash flow and working capital trends:
Forward-Looking Statements
COOR maintains its mid-to-long-term targets of 4-5% organic growth and an adjusted EBITA margin of approximately 5.5%. The company’s current performance shows progress toward these goals, with Q2 2025 organic growth at 3% and adjusted EBITA margin at 5.2%.
Management characterized Q2 as "a stable quarter with positive signs" and highlighted several priorities moving forward:
- Continued focus on extending important contracts and securing new customers
- Further improving systems and support for leaders and employees
- Strengthening operational efficiency
- Maintaining the improved cash conversion rate
The company also announced plans to hold a Capital Markets Day, though specific details were not provided in the presentation.
Conclusion
COOR’s Q2 2025 results demonstrate a recovery from its challenging Q1 performance, with a return to positive organic growth and improved profitability metrics. The strong performance in Norway helped offset continued challenges in Denmark and slight declines in Sweden and Finland. The company’s successful contract extensions and new business wins, coupled with completed organizational changes, position it well to continue progress toward its mid-to-long-term financial targets.
Investors appear to have responded positively to these developments, as evidenced by the 5.82% increase in COOR’s stock price following the presentation and the continued recovery from its 52-week low. The company’s focus on improving operational efficiency and cash conversion will be key factors to watch in upcoming quarters.
Full presentation:
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