Street Calls of the Week
Introduction & Market Context
COOR Service Management (STO:COOR) presented its Q2 2025 interim results on July 14, 2025, highlighting a return to positive organic growth and improved operational efficiency. The Nordic facility management provider, which employs approximately 12,000 people across the region, reported modest financial improvements amid varying performance across its geographical segments.
The company’s stock closed at SEK 48.82 on October 14, 2025, near its 52-week high of SEK 49.82, representing a significant recovery from its 52-week low of SEK 29.60. The presentation, delivered by President and CEO Ola Klingenborg and CFO Andreas Engdahl, outlined key developments in COOR’s contract portfolio and operational performance.
As shown in the following overview of key performance indicators:
Quarterly Performance Highlights
COOR reported net sales of SEK 3,199 million for Q2 2025, a slight increase from SEK 3,180 million in the same period last year. More significantly, the company achieved organic growth of 3%, reversing the negative trend from previous quarters (-1% in Q2 2024). Adjusted EBITA reached SEK 165 million with a margin of 5.2%, showing a modest improvement from 5.1% in Q2 2024.
The company’s contract portfolio showed positive momentum with new contracts awarded totaling SEK 299 million, while contracts ended amounted to SEK 105 million, resulting in a net positive change of SEK 193 million. Notable contract extensions included an IFM contract with Volvo Cars, while new business was secured with Region Gävleborg, University in Oslo, Askøy Municipality, and Statkraft.
The following chart illustrates COOR’s financial performance:
Segment Performance Analysis
COOR’s performance varied significantly across its four Nordic markets. Sweden, which accounts for 54% of net sales, experienced a slight organic decline of -0.8%, an improvement from -2.8% in the previous year. The Swedish segment maintained a strong adjusted EBITA margin of 9.1%, though slightly below last year’s 9.5%.
Denmark, representing 23% of net sales, continued to face challenges with organic growth of -2.9%, though this was better than the -4.4% recorded in Q2 2024. The Danish operations’ adjusted EBITA margin decreased to 4.0% from 4.5% year-over-year. The company announced that Peter Hasbak will take over as CEO of the Danish operations after the summer.
The standout performer was Norway, which accounts for 18% of net sales. The Norwegian segment achieved remarkable organic growth of 23.2%, significantly up from 11.4% in Q2 2024. This exceptional performance was attributed to unusually high variable volumes linked to maintenance stops in the Norwegian energy sector. The adjusted EBITA margin in Norway improved to 5.4% from 4.6% in the previous year.
The following chart demonstrates Norway’s impressive performance:
Finland, COOR’s smallest segment at 5% of net sales, reported a slight organic decline of -1.1% compared to 0.2% growth in Q2 2024. However, the adjusted EBITA margin improved marginally to 1.7% from 1.5% year-over-year.
Cash Flow and Balance Sheet
A significant highlight of the quarter was the improvement in cash conversion to 88%, up from 81% in Q1 2025, though still below the 92% achieved in Q2 2024. This improvement was attributed to a restored net working capital position. The company’s leverage ratio stood at 2.9x, slightly higher than the 2.7x reported in Q2 2024.
The following chart illustrates the cash flow and balance sheet developments:
COOR’s contract portfolio showed a healthy distribution across different contract sizes and maturity periods, providing stability to future revenue streams. The company’s contract concentration and maturity profile is illustrated below:
Strategic Initiatives and Outlook
COOR has completed previously announced changes to its central staff organization, with the short-term priority now focused on improving systems and support. Management indicated plans to hold a Capital Markets Day early next year, suggesting potential strategic updates on the horizon.
CEO Ola Klingenborg characterized Q2 2025 as "a stable quarter with positive signs," emphasizing the company’s success in extending important contracts and securing new customers in what he described as a stable market. The restoration of net working capital position, which improved cash conversion to 88%, was highlighted as a key achievement.
Looking ahead, COOR aims to maintain its position as a leading provider of facility management services in the Nordic region, with a stated goal of creating "the happiest, healthiest and most prosperous workplace environments in the Nordic region." While the company faces challenges in some markets, particularly Sweden and Denmark, the strong performance in Norway provides a bright spot and potential growth driver for future quarters.
The company’s mid to long-term targets remain focused on 4-5% annual growth, an adjusted EBITA margin of around 5.5%, cash conversion exceeding 90%, and a capital structure maintaining net debt below 3.0x adjusted EBITDA.
Full presentation:
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