Robit Q2 2025 presentation: Sales decline as exchange rates impact profitability

Introduction & Market Context

Robit Plc, a global drilling consumables manufacturer, presented its Q2 and H1 2025 financial results on August 5, 2025, revealing continued challenges in its operating environment. The company faced significant headwinds from unfavorable exchange rate developments and weakened demand in the construction sector, while mining industry demand remained relatively stable.

The presentation, delivered by CEO Arto Halonen and CFO Ari Suokas, highlighted the company’s ongoing cost savings program and operational model renewal, which are expected to be finalized during Q3 2025.

Quarterly Performance Highlights

Robit reported a substantial decline in both orders and sales for Q2 2025. Orders decreased by 18.0% to €20.7 million compared to €25.2 million in the same period last year, while net sales fell by 20.4% to €19.6 million from €24.6 million in Q2 2024.

The company’s profitability was significantly impacted by exchange rate losses, with EBIT declining to -€0.6 million compared to €0.7 million in Q2 2024. This represents a substantial 189.6% decrease year-over-year.

As shown in the following chart of net sales and comparable EBITDA, the company has experienced a downward trend in both metrics over recent quarters:

Despite the challenging environment, Robit maintained positive cash flow from operations at €1.8 million, only slightly below the €2.0 million reported in Q2 2024. This was primarily driven by a reduction in net working capital.

Detailed Financial Analysis

Geographically, Robit’s performance varied significantly across regions. The EMEA region continued to represent the largest share of sales at 56%, followed by Americas at 21%, Australasia at 11%, and Asia at 12%. Notably, Asia was the only region to deliver growth, with sales increasing by 2.2% compared to H1 2024.

The following geographic breakdown illustrates the regional sales distribution and year-over-year changes:

The company’s financial position showed mixed signals. While the equity ratio remained strong at 50.7%, net debt increased to €20.8 million from €16.4 million in the comparable period. The net debt to 12-month rolling EBITDA ratio rose to 4.47, indicating increased financial leverage.

The following table provides a comprehensive overview of Robit’s key financial metrics for Q2 and H1 2025:

Working capital management showed some improvement during the quarter, though it remains relatively high as a percentage of sales. Net working capital increased by €3.0 million year-over-year to €41.8 million, representing 49.7% of last 12 months’ sales.

The company’s working capital development is illustrated in the following chart:

Strategic Initiatives

Despite financial challenges, Robit continues to make progress on its sustainability goals. The company reported that 97.2% of suppliers are committed to sustainable supply chain principles, and its emission intensity has decreased by 44.8% compared to the 2020 benchmark year. The waste recovery ratio at Robit factory locations has improved to 91.9% from 86.8% in H1 2024.

Robit is also advancing its product innovation strategy, with new offerings designed to improve efficiency and reduce environmental impact. The company highlighted its Robit® Mbit Series, which delivers 30% straighter holes, up to 25% longer lifetime, and 15% faster penetration, resulting in CO2 emissions savings.

The following slide showcases these product innovations:

For 2025, Robit has identified three key focus areas: returning to growth, improving supply chain management, and enhancing product competitiveness. The company plans to drive growth in its Top Hammer and Geotechnical segments through new product launches while recovering Down the Hole sales, particularly in North America.

The strategic priorities are outlined in the following slide:

Forward-Looking Statements

Looking ahead, Robit expects net sales to decline in 2025 compared to 2024, while comparable EBIT profitability in euros is anticipated to remain at the same level or decline compared to 2024. This guidance is based on continued good demand in the mining sector and developing positive demand in construction.

The company maintains its long-term financial targets of growing faster than the average market and achieving a comparable EBIT profitability of 10%, though current performance remains well below these targets.

Robit’s financial targets and 2025 guidance are summarized in the following slide:

In conclusion, while Robit faces significant challenges from exchange rate developments and weakened demand in key markets, the company is implementing strategic initiatives to address these issues through cost savings, operational model renewal, and continued focus on product innovation and sustainability. The effectiveness of these measures will be crucial for the company’s ability to return to growth and improve profitability in the coming quarters.

Full presentation:

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