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Introduction & Market Context
NCAB Group reported its Q2 2025 results on July 22, showing stable sales but highlighting significant currency headwinds that masked underlying business improvements. The global PCB (printed circuit board) specialist, which operates in 19 countries serving 45 markets, saw positive order intake trends across most regions while contending with the impact of a weaker US dollar.
The company’s presentation emphasized its continued focus on strategic acquisitions and geographical expansion, with CEO Peter Kruk (WA:KRU) and CFO Timothy Benjamin detailing how currency fluctuations impacted what would otherwise have been stronger financial results.
Quarterly Performance Highlights
NCAB reported stable net sales of 934 MSEK for Q2 2025, virtually unchanged from 935 MSEK in the same period last year. However, when measured in USD, net sales increased by 10%, demonstrating the significant impact of currency exchange rates on the company’s reported figures.
Order intake showed more positive momentum, increasing by 5% to 985 MSEK, with a 16% increase when measured in USD. The book-to-bill ratio stood at a healthy 1.05, indicating potential future revenue growth.
As shown in the following quarterly performance summary:
EBITA decreased to 93.9 MSEK from 120 MSEK in Q2 2024, resulting in an EBITA margin of 10.0% compared to 12.9% in the prior year. Gross margin declined to 35.1% from 38.0% year-over-year, though the company noted a slight improvement compared to Q1 2025.
Currency Impact Analysis
The significant weakening of the US dollar against the Swedish krona was a dominant theme throughout the presentation. The USD/SEK exchange rate averaged 9.66 during Q2 2025, compared to 10.68 in the same period last year.
This currency shift had a substantial negative impact on NCAB’s financial results, as detailed in the following breakdown:
The company quantified the total negative impact of currency fluctuations at 90 MSEK for revenue and 17 MSEK for EBITA. Management emphasized that excluding this currency effect, EBITA would have been 17 MSEK higher, significantly changing the quarter’s performance narrative.
Segment Performance
NCAB’s performance varied considerably across its four geographical segments:
The Nordic segment saw order intake increase by 15% to 260 MSEK, with net sales up 4% to 215 MSEK. However, EBITA declined to 23.0 MSEK from 29.6 MSEK, with margin compression to 10.7% from 14.3%, primarily due to adverse FX and product mix.
Europe experienced a 12% increase in order intake to 475 MSEK, but net sales decreased by 7% to 440 MSEK. EBITA fell significantly to 33.6 MSEK from 56.7 MSEK, with margins declining to 7.6% from 12.0%. The company noted continued recovery challenges in key markets including Germany, Italy, and the UK.
The North American segment showed mixed results with order intake decreasing by 18% to 189 MSEK, but net sales increasing by 12% to 225 MSEK. EBITA improved to 32.0 MSEK from 28.1 MSEK, maintaining a stable margin of 14.2%. Management attributed some of the order intake decline to timing issues, noting that year-to-date order intake was up 9% in USD.
The East segment reported a 3% increase in order intake to 61 MSEK (12% in USD) and a 2% decrease in net sales to 54 MSEK. EBITA decreased to 9.5 MSEK from 11.0 MSEK, with margins declining to 17.4% from 19.8%.
Strategic Initiatives
NCAB continues to execute its acquisition strategy, announcing the purchase of B&B Leiterplattenservice in Germany. This acquisition, which closed on June 3rd, brings approximately 150 MSEK in annual revenue and over 20 MSEK in EBITA to the group. The company has 25 employees across Germany and China, with a focus on industrial and energy customers in eastern Germany.
The following slide illustrates NCAB’s strategic framework for growth:
The company outlined four key pillars of its growth strategy: geographical expansion, market consolidation, maintaining 100% focus on PCBs with an asset-light model, and increasing market share in existing markets.
NCAB also highlighted its active M&A pipeline, with six acquisitions completed in 2024/2025, including Cumatrix (Belgium), EPI Components (Austria), ICOM Industrial (Switzerland), Print Production (Denmark), DVS Global (Italy), and B&B Leiterplattenservice (Germany).
Financial Position
Despite the challenging currency environment, NCAB maintained a strong financial position, as shown in the following key performance indicators:
The company reported a return on equity of 13.5%, down from 26.0% in 2024, and a net debt/EBITDA ratio of 1.8, up from 1.1. Working capital increased to 353 MSEK, representing 9.2% of net sales compared to 8.1% in the previous year.
NCAB also secured renewed and increased financing with extended terms until 2030, providing additional financial flexibility for future growth initiatives.
Forward-Looking Statements
Looking ahead, NCAB expressed cautious optimism about market conditions, highlighting positive order intake as an encouraging sign for future quarters. The company emphasized its continued focus on M&A activities, maintaining its target of 2-5 acquisitions annually.
Management identified several key trends supporting long-term growth, including digitalization, electrification, and IoT, which drive demand for PCBs across various industries. The presentation emphasized that "everything needs a PCB and each PCB is unique," highlighting the company’s specialized market position.
The following summary slide captures the key takeaways from the quarter:
While currency headwinds remain a challenge, NCAB’s management expressed confidence in the company’s strategic direction and ability to navigate the current market environment. The positive book-to-bill ratio of 1.05 suggests potential revenue growth in coming quarters, particularly if currency conditions stabilize.
NCAB Group shares were trading at 55 SEK following the presentation, down 1.55% on the day, reflecting the market’s measured response to the mixed results.
Full presentation:
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