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Introduction & Market Context
HANZA AB (STO:HANZA) shares jumped 6.53% to 106 SEK on July 22, 2025, as the company presented its second-quarter results showing significant margin improvement and strategic acquisitions despite challenging market conditions. The manufacturing solutions provider reported continued momentum following its strong first-quarter performance, when the stock had previously surged 7.89%.
CEO Erik Stenfors and CFO Lars Åkerblom presented the company’s results under the theme "Fast forward in a slow market," highlighting HANZA’s ability to grow and expand margins even as the broader manufacturing sector faces headwinds.
Quarterly Performance Highlights
HANZA reported impressive financial results for Q2 2025, with net sales increasing 24% to 1,516 MSEK, driven by the acquisition of Leden Group and organic growth of 3%. Adjusted operating profit reached 106 MSEK, up from 70 MSEK in the same period last year, while adjusted earnings per share nearly doubled to SEK 1.13 from SEK 0.58.
The company’s adjusted operating margin for comparable units (excluding Leden) improved to 7.8% in Q2, continuing the positive trend seen in Q1 when the operating margin was 7.3%. This improvement demonstrates HANZA’s ability to enhance operational efficiency while integrating new acquisitions.
As shown in the following quarterly performance chart:
Both business segments showed strong performance. The Main Markets segment, which includes operations in Scandinavia, Germany, and China, saw sales increase by 27% to 917 MSEK with an adjusted operating profit of 70 MSEK, representing a margin of 7.6% (up from 7.2%). The Other Markets segment, covering the Baltics, Central Europe, and now UAE, increased sales by 20% to 596 MSEK with an adjusted operating profit of 43 MSEK, more than doubling its margin to 7.2% from 4.0% a year earlier.
The segment breakdown illustrates the company’s balanced growth across regions:
Strategic Acquisitions and Growth Initiatives
A major focus of HANZA’s presentation was the integration of Leden Group, acquired in March 2025, and the newly announced acquisition of Milectria, which strengthens the company’s position in the defense sector.
The Leden acquisition has added approximately 600 employees and five production facilities across Finland and Estonia, contributing annual sales of around SEK 1.1 billion. The integration process is proceeding smoothly, with Leden’s operations being divided between HANZA’s Finland and Baltics clusters. The company noted that customer demand currently exceeds Leden’s capacity, and HANZA has launched support resources with permanent capacity solutions expected to be in place within 2025.
The details of the Leden integration are illustrated here:
In July 2025, HANZA signed an agreement to acquire Milectria, a manufacturer of electrical equipment and systems primarily for the defense sector. This acquisition is part of the company’s LYNX Program, launched in March 2025 to capitalize on increased demand for defense-related products in Europe.
The LYNX Program strategy is shown in the following slide:
The Milectria acquisition will add facilities in Finland, Estonia, and the UAE, bringing HANZA’s total workforce to approximately 3,500 employees globally. The purchase price of 16.4 MEUR is based on an EBITA multiple of 4.9, with an additional 18 MEUR potentially payable based on revenue growth during 2025-2027. The acquisition is expected to close in September 2025 and positively impact sales, operating margin, and earnings per share.
The global footprint expansion resulting from these acquisitions is illustrated here:
Financial Health and Outlook
HANZA reported strong operating cash flow of 163 MSEK for Q2 2025, up from 135 MSEK in the same period last year. Investments in fixed assets (excluding acquisitions) amounted to 24 MSEK, significantly lower than the 96 MSEK invested in Q2 2024. The company’s net debt decreased to 1,133 MSEK, with the net debt to EBITDA ratio improving to 2.1 from 2.3 in Q1 2025, well below the company’s target of 2.5.
The cash flow and debt metrics are visualized in this chart:
Looking ahead, HANZA management expressed cautious optimism about market conditions, noting that demand is picking up as several existing customers are raising their volumes. The company is finalizing its "HANZA 2028" strategic plan, which will be presented at a capital markets day later in 2025.
Market Reaction and Analyst Perspectives
The market responded positively to HANZA’s Q2 results and strategic initiatives, with the stock rising 6.53% to 106 SEK on the day of the presentation. This continues the stock’s upward trajectory, approaching its 52-week high of 107.8 SEK, and representing a significant recovery from its 52-week low of 50.8 SEK.
The company’s focus on margin expansion and strategic acquisitions appears to be resonating with investors, particularly as HANZA demonstrates its ability to grow despite challenging market conditions. The integration of Leden and the pending acquisition of Milectria position the company well for continued growth in both traditional manufacturing and the expanding defense sector.
HANZA’s ownership structure remains stable, with Färna Invest AB as the largest shareholder at 21.75%, followed by Francesco Franzé at 8.30% and institutional investors including Första AP-fonden and ODIN Fonder. The top ten shareholders collectively own 56.23% of the company, providing a solid foundation for its strategic initiatives.
With its improved margins, strategic acquisitions, and strong cash flow, HANZA appears well-positioned to continue its "fast forward" trajectory even as the broader manufacturing market remains challenging.
Full presentation:
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