Nimbus Group Q2 2025 slides: sales decline narrows as cash position strengthens

Introduction & Market Context

Nimbus Group AB (BOAT) presented its Q2 2025 financial results on July 17, 2025, revealing an 8% year-over-year sales decline amid ongoing market challenges. The stock reacted negatively, trading down 1.64% at 15.2 SEK following the presentation, reflecting investor concerns about continued headwinds in the recreational boating market.

The Q2 results show some signs of stabilization compared to Q1 2025, when the company reported a steeper 13% sales decline. While market uncertainty persists, particularly due to tariff situations affecting customer confidence, the company highlighted improved order intake in North America and significant progress in cash flow management.

Quarterly Performance Highlights

Nimbus Group reported Q2 2025 sales of 571 mSEK, down 8% from 623 mSEK in the same period last year. EBITA declined to 25 mSEK from 45 mSEK, while order intake showed a modest improvement to 356 mSEK from 341 mSEK. The company noted a negative currency impact of 10 mSEK affecting the quarter’s results.

As shown in the business update slide, the company is experiencing both challenges and positive developments, including cost reduction initiatives beginning to take effect and expansion into new marketplaces across multiple regions:

Commercial sales dropped by 8% (-51 mSEK) year-over-year, with regional variations in performance. North America showed promising signs with improved order intake, increasing from 77 mSEK in Q2 2024 to 131 mSEK in Q2 2025, despite a slight decline in net sales. The company noted that only confirmed orders with pre-payment are included in the order book.

The following chart illustrates the commercial sales development across different regions:

Retail sales followed a similar pattern, decreasing by 8% compared to Q2 2024. The company highlighted that Q2 is a seasonally important quarter in the Nordics. Order intake in the retail segment declined by 29% to 148 mSEK from 209 mSEK in the previous year, with the most significant drop in traded and used boats.

The retail sales development across different categories is shown below:

Detailed Financial Analysis

Nimbus Group’s profit and loss development reflected several challenges, including continued cost under-absorption effects from low sales and production volumes. The company’s focus on reducing stock of finished boats negatively impacted gross margin, while tariffs and exchange rate fluctuations (particularly USD) had a net negative effect of 11 mSEK.

Despite these challenges, the company managed to reduce operating expenses to 42 mSEK from 53 mSEK, even while investing in its sales organization. The finance net was -27 mSEK compared to -9 mSEK, primarily driven by intercompany currency effects related to USD.

A significant bright spot in the financial results was the company’s cash flow and working capital management. Operating cash flow in Q2 amounted to 90 mSEK, up from 79 mSEK in the same period last year. Inventory decreased by 129 mSEK in the quarter, and available cash increased substantially to 299 mSEK from 77 mSEK.

The following chart details the cash flow and working capital developments:

Strategic Initiatives

Nimbus Group continues to pursue strategic initiatives despite market headwinds. The company highlighted several key developments, including establishing new marketplaces in North America, Europe, and Asia. The planned closing of the Kuopio facility is proceeding according to plan, part of the company’s cost reduction efforts.

The company also emphasized its brand portfolio strength and recent achievements, including the production of the first US-made Nimbus brand boat in Q2 2024, entry into a new business segment with the launch of Nimbus 495 at Cannes in September 2024, and Alukin’s entry into the governmental segment with an order from the Swedish armed forces in October 2024.

Additionally, Nimbus Group implemented a new organizational structure in May 2025, which is expected to streamline operations and improve efficiency. The company’s recognition as "European Powerboat of the Year 2025" underscores its continued focus on product quality and innovation despite challenging market conditions.

Forward-Looking Statements

Despite the ongoing challenges, Nimbus Group maintained its ambitious financial targets, including growth exceeding 10%, an EBITA margin of 10%, a capital structure with no financial debt, and a dividend policy of 30%. These targets reflect the company’s long-term confidence despite short-term headwinds.

The company faces several challenges moving forward, including continued market uncertainty due to tariff situations, longer buying lead times, and the need to further align production with demand. However, the improved order intake in North America and the significant strengthening of the company’s cash position provide some optimism for the coming quarters.

Following Q1’s negative EBITDA of 13 mSEK, the Q2 results show some signs of stabilization with EBITA of 25 mSEK. The company’s next financial report will be the Q3 2025 results, scheduled for release on October 23, 2025, which will be closely watched for evidence of continued improvement in the company’s performance trajectory.

Full presentation:

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