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Hanza AB (Market cap: $508.41M) reported strong financial results for the second quarter of 2025, with net sales increasing by 24% to over SEK 1.5 billion. The company’s earnings per share (EPS) rose to 1.13 SEK. Despite a challenging economic environment, Hanza’s stock price surged by 6.33% in pre-market trading, reflecting investor optimism about the company’s growth trajectory and strategic initiatives. According to InvestingPro analysis, the company currently appears overvalued based on its Fair Value calculations.
Key Takeaways
- Net sales increased by 24%.
- EPS rose to 1.13 SEK, indicating strong profitability.
- Stock price increased by 6.33% in pre-market trading.
- Margin improvement to 7.8% from 4.1% YoY.
- Strategic acquisitions and expansions in the defense sector.
Company Performance
Hanza AB demonstrated robust performance in Q2 2025, with significant sales growth driven by both organic expansion and strategic acquisitions. The company’s unique cluster approach in contract manufacturing has positioned it well against competitors, allowing it to capitalize on increasing demand across sectors like defense, energy, and automation.
Financial Highlights
- Revenue: SEK 1.5 billion, up 24% YoY
- Earnings per share: 1.13 SEK, reflecting improved profitability
- Operating profit: SEK 106 million, with a margin increase to 7.8%
- First half-year accumulated sales: SEK 3.051 billion
Market Reaction
Hanza’s stock price rose by 6.33% following the earnings announcement, driven by strong financial performance and positive market sentiment. The stock has demonstrated remarkable momentum, with a 63.12% return over the past year and 31.01% YTD. InvestingPro analysis indicates the stock is trading near its 52-week high, with technical indicators suggesting overbought conditions.
Outlook & Guidance
Hanza maintains its financial targets, expecting a margin increase of 0.5% per quarter. The company anticipates positive impacts from recent acquisitions, particularly in the defense sector, and plans to hold a Capital Market Day at year-end to further elaborate on its strategic initiatives.
Executive Commentary
CEO Erik Stenfors emphasized the company’s resilience, stating, "We keep moving, even putting on some extra speed when the economy stands still." He also highlighted the company’s innovative approach: "We are not a traditional contract manufacturer. Our model is different and so is our speed of development."
Risks and Challenges
- Economic Uncertainty: Potential impacts from broader economic fluctuations.
- Integration Risks: Challenges in integrating recent acquisitions such as Melectrica.
- Market Competition: Increasing competition in the contract manufacturing sector.
- Supply Chain Disruptions: Potential disruptions affecting production timelines.
- Regulatory Changes: Adapting to new regulations in different markets.
Hanza AB’s Q2 2025 earnings report reflects strong growth and strategic positioning, with investors responding positively to its financial performance and future outlook.
Full transcript - Hanza AB (HANZA) Q2 2025:
Conference Moderator: Welcome to the Hanza Q2 Report twenty twenty five Presentation. Now I will hand the conference over to the speakers’ CEO, Erik Stenfors and CFO, Lars Akerblom. Please go ahead.
Erik Stenfors, CEO, Hanza: Thank you, and good morning. Thank you for joining us in the middle of summer. I’m Erik Stenfors, CEO of the company, and it will be my pleasure to walk you through Hansa’s second quarter twenty twenty five together with our excellent CFO, Lars Bokkedom. Now every quarter tells a story, and this one is about moving fast forward in a slower market. As you might know, if you’ll be following us, Hansa is not a traditional contract manufacturer.
Our model is different and so is our speed of development. So we have many activities going on right now. And in this presentation, we will focus on three main areas. LiaDen, the acquisition we did in March, where our swift integration now turned into a capacity expansion driven by strong customer demand. We will talk about Lynx.
That’s our defense focused program, which is now accelerated by a targeted acquisition just last week. And we will talk about the future. We see now that volumes are rising again. This is the first time since the downturn began. So a lot of good information will come up today, and we have the agenda structured
I will present the general development. Lars will talk about the sustainability and the financial review. We will have the q and a session, and that’s the point where all questions are warmly welcomed. So please use that. Let’s start with LEADEN.
This is a company that really has met our expectations. They have a very high technical expertise. They have a healthy corporate culture and should be, after our, thorough, HR due diligence. And just to recap, this is a contract manufacturer of mechanics. They are specializing in sheet metal mechanics, machining and complex assembly.
Have about two 600, people, where 200 are in Estonia and 400 in Finland. Estimated sales this year, about SEK 1,100,000,000.0. We started integration as soon as closing was done. Then in March, it’s going really well. We have split the organization.
If we look to the right, what we do is that we take the four Leiden units in Finland and bundle them together with our three existing units, creating a new cluster Finland under the leadership of Juukka Happel Island, fantastic new leader we got with the acquisition. He used to be then CEO of Leland, is now then president of cluster Finland. Then we took the unit in Estonia in Tallinn and grouped it together with the other units under the leadership of the also fantastic Lever Congi, who is our president of ClusterPolitics. It’s been working well. The financial reporting works really well.
No problem to put this report together. Rebranding, you see also the new signs on the building. What has been a challenge though is that we got with this acquisition a new customer base. We got, for instance, Eton. It’s the power management company.
We got Danfoss, working with cooling and heating and motor drives. We got more of ABB. You know that company, Electrification Automation. They are growing quickly, and that puts us in a bit of a dilemma. Should we grow with the companies we have our customers, we have excellent dialogues with them, or should we focus then on streamlining operations?
It’s an easy call. Scale now, optimize later. So what we have done is we have accepted the growth. If you check them, and Lars will probably come back to this in the numbers, if you check the sales for this quarter, it’s, for Lehadan above 15% more than this 1,100,000,000.0 expected, and it’s just the first quarter. So we are working with extra shipments.
We are working with overtime. We are working with production across several factories. Downloading the margin, but the good part is only temporary. The beauty is when you integrate a factory company like Leedon into Hamza, the capacity of Hamza and Leedon, one plus one, becomes more than two. So already within this year, we will have a new capacity solution in place, and that will lead them to a very quick upturn in the profitability.
So that’s about the Leyden case. If you then look at Lynx, this was, let’s say, a response to the new security situation in Europe, which was very clear when the new administration took office in The US. Linx is about targeting the defense sector, And we have a concept that works really well for that. We have electronics mechanics, complex assembly in local places, what is needed for the expansion of this sector. And I think also we have good experience.
Defense is not nothing new for us. We’ve been working for them for many, many years. But I think also on a personal note that this is not just good for business. It’s also good for Europe. It’s about Europe.
It’s about democracy. I think every contract manufacturer should ship in some capacity for the defense industry right now. It is really important. On the other hand, we must, of course, safeguard capacity for other industries, for other customers. And the talk on the street now is that the fence is eating up all the capacity, what will be left for the other industries.
And that’s why it was so important with this acquisition of Melectriga. It it brings expertise. It brings a new customer base, but it also brings a capacity platform where we can grow with this sector without having to lower the capacity for other industries. Now we are waiting for the approvals from the authorities. It’s a standard process.
We expect that to be ready by September. We have said at that point, we will have a little not opening ceremony, but closing ceremony we close the deal in in the headquarter in Finland and talk more about the new customer base. We cannot reveal so many details right now. And talk about this Linx project, how that will proceed over the coming year. And you must you are much welcome
We will send out invitations. What we can tell already now is that Melekte comes with one factory in Finland, two in Estonia and one in Abu Dhabi. It brings our total staff up to 3,500 people divided, as you can see on the map to the right. It brings the sales of about 300,000,000 SEK annually, same case as with LiaDen or better and worse how to say it, but this area will expand even quicker than LiaDen. But we do have a capacity platform, So we are not afraid of this increase.
We will be able to handle this, thanks to the plan we have made in Linx. And again, more about this, in Finland in September. And this will then be kept as a special part, and that is also unusual. Instead of putting the different factories to the different clusters like Berlin, we will keep this as a special unit, as a special part of the Linx project. More information to come within soon.
And with that, I leave the floor to Lars to talk about sustainability.
Lars Akerblom, CFO, Hanza: Thank you, Eric. And the sustainability work in in q two was focusing on including LIADOM that we acquired in in in March into the the figures. So now we have in the figures, you see to the right, LiaDOM’s factories are included. We also started to work with the DMA, including LiaDOM to prepare for the CSRD reporting by the end of of this year and the beginning of next year to fulfill the the the requirements. We also worked with the annual employee survey, the feedback we get from from our employees.
We work with that, changing where we can improve things based on on the feedback we get from from our employees. And we also have quite interesting project in in Estonia bringing in people from from the open prisons working in our factories in both Tarte and Narva. And next step will be to also do this in Tallinn. We see on the figures that in injury the frequency rate are stable at the level we have been for for quite a while. And we also see that the the the hazard ways is increasing a little bit due to the fact that we took down one painting line in in Sieri, and that increased this temporarily.
We also see that the energy use is increasing. That is due to the acquisition of of Ledo. Coming into the financials, we see a strong increase of the of the net sales, increasing by 24%, and we also see an organic growth of of 3%. And we are a little bit above this SEK 1,500,000,000.0 in the quarter and same level as in Q1. So accumulated, including LIAD in the full period of the first half year, we are a little bit above SEK 3,000,000,000 or SEK 3,051,000,000.
As Erik mentioned, we see a change in the market. We see that for the first time since the downturn in economy, we see increased receivable of of orders and and the volumes to that will increase in we expect to increase in in the second half year. So that’s a major change in in in the operation right now. Earnings, the adjusted operating profit, which actually this quarter is the same as the operating profit is SEK 106,000,000. And having a continuing increase of of the margins, If you take the comparable units, we have 7.8% coming from 4.1 a year ago and and 7.3 in q one.
Eric mentioned the challenges we have in the Liaven factory, and that reduces the the margin for the for the whole group. Liaven is approximately on 4% margin in q one compared to 7% in March. We expect Liadin to increase the profitability. We also have arranged the transaction or the acquisition of Liaven with an earn out that is depending on the profitability in Liaven. So if this lower margin continues, we also will have a release of the earn out in the balance sheet.
OrbitOne that we acquired a little bit more than a year ago, at that time being on 6% approximately in margin, are now on the same level as the rest of of of Hansa if you exclude Leland. So that’s really positive and show good development of companies that we acquire that we can rearrange some parts and and increase the profitability quite fast after the acquisition. The earnings per share increased to to 1 crown 13 oira. And And for for the the first half year, it’s it’s $2.23. Looking into to to the cash flow, we continue to have a strong cash flow.
We saw that cash flow peaked in q four, but it continues to be strong also in in the first half year. We have not seen the full effect of the work the work we do with with the working capital in Lelanden. So we expect to have a positive continuously positive cash flow also when we are able to to to release some working capital in Liaadan. What what you see on the on the graph to the right is actually when we acquire company, we we increase the net debt compared to the EBITDA, and then we are able to work it down. So both in in q two twenty four and in q one twenty five, see that the net debt compared to the EBITDA is increasing a little bit.
And we are regarding the net debt compared to the EBITDA, we are well below the 2.5 that we have as a financial target. We will, with the acquisition of Inletica, increase that temporarily, but we expect the net debt compared to the EBITDA to continue to decrease. We have a solid balance sheet. We have equity to asset ratio that actually increased during Q2 despite the fact that we we paid out dividend, and we are on 35%. So so we have a a solid balance sheet.
We also decreased the the net debt if you include the dividends approximately with with the 100,000,000 SEK. Coming into the segments, we see, which I think is very positive, we see that other markets are at the higher level and and closer to the level of the main markets. And for you that have followed Hansa for quite a while, been hearing me and Eric saying that there shall be really no reason to have a lower margin in in main in low in other markets compared to to the main markets. It’s more a matter of how mature the factories are and the programs that we call the next programs, where they are and and and what phase they are. And now we see the result of both that the factories are more mature and that we have done this Onyx program with restructuring.
So we see an increased margin in in other market compared to to to what we have seen previously. We see an organic growth in main markets. We see a slight decrease of organic growth in in in other markets. And we see the profitability that are in line with with with the historical figures except for the fact that that other markets are increasing the profitability. Ownership share, we have the same main owner.
We have some some differences. Some some financial institutions are increasing their their their shares, their their owner ownership, and and some are decreasing, no major changes. We increased the number of shares in the beginning of the year when we acquired LiaDON. We see that Eric continues to increase his owning and holds now 640,000 shares corresponding to 1.4% of the ownership. And by that, I leave back to you, Erik, for a summary.
Erik Stenfors, CEO, Hanza: Unless unless you like to comment on this slide. Sorry.
Lars Akerblom, CFO, Hanza: Yes. The the Melectica acquisition, and it’s 100% of of of the shares in the construction manufacturing part of of Milletrica. We also acquired the the factories, the real estates, where the operations is is run. The purchase price is set to €16,400,000, and it’s based on a EBITA multiple or 4.9 of cash and debt free basis. And this will be a cash deal, so there are no Hounser shares involved in in in this acquisition.
And similar to what we did in Orbit and in Leiden case, we have an earn out, and the earn out can be maximum €18,000,000 based on on the revenue in 2025 to 2027. But in in to reach the full earn out, the sales in the company needs to be more than doubled during this period. As Eric mentioned, we are waiting for government approvals that we cannot really steer, but we expect them to be ready in September. We also expect this to, from the start, have a positive impact on both sales, operating margin, and maybe most important, earnings per share. Now, Erik, now you can do the summary.
Erik Stenfors, CEO, Hanza: Thank you, Lars. And today, my family is also buying shares. I see on your list, Lars, that I need to get up to two percent in order to be on the top 10 list. Okay. The key takeaway of today’s presentation this quarter, this last year, and maybe the key takeaway how we work is that we keep moving, even putting on some extra speed when the economy stands still.
And by doing that, we create a strong position for the future. We talked about the Leyden acquisition, how we’re now increasing capacity. We talked about the Lynx program, which will go on for up to a year and embrace this in Melectica before we then integrate it into our clusters next year. But as I said in the beginning, we have many other activities going on. In February, we opened a new factory in Tuxford, Sweden.
It’s now in full swing. A lot of work behind that. We decided also to expand our building in Orjang mechanics in Sweden because of a strong demand from the energy sector. In Poland, we have the streamlining project. We talked about this in earlier reports, going really well and also contributing to the margin in other markets that Lars talked about.
This is still a slow market in Germany, of course, sad for the volumes, but still, we feel that this is bringing new opportunities. We really like to increase our presence in Germany. Then if you look ahead, clear signs that the downturn has started early twenty twenty four is now reversing. That was also our initial expectation. In the beginning of twenty twenty four, it was said that it could be a destocking exercise and demand will pick up already second half of twenty four.
We didn’t believe in this. This was a normal downturn of the demand that will last for a couple of years. But it’s well in line with with our plan. And then, of course, we work with Hansa 2028. It’s on the final phase.
We were, in this quarter, talking to a number of customers. We have a very close dialogue. We would like to, of course, develop Hansa according to the demand and and the strategy of our customers. We will call for a Capital Market Day at the end of this year where we tell you about this next important step of Hansa. And with that, we can now open up for any questions.
Conference Moderator: Next question comes from Anders Akerblom from Nordea. Please go ahead.
Anders Akerblom, Analyst, Nordea: Good morning, Lars and Erik. Thank you for the presentation and taking my questions. So firstly, would like to ask a bit on profitability in the Other Markets division. I mean, obviously, you reported a very healthy margin uplift. Could you just walk us through this in a bit more detail, particularly as you didn’t see any positive organic sales growth in the quarter in that division?
Erik Stenfors, CEO, Hanza: Will you start, Lars? Or should
Lars Akerblom, CFO, Hanza: I Yes. I can start. Hello, Anders. It is as said, we have been working since the downturn a year ago, a little bit more than a year ago with this Onyx program restructuring, adjusting the cost base to to to the the volume the sales volume. So it’s not driven by growth of sales.
It’s it’s driven by higher efficiency and and lower cost and and the switch in the customer base, etcetera. So that’s the main driver of the increased profitability in other markets.
Anders Akerblom, Analyst, Nordea: But and I get that and appreciate the answer. But I mean, just looking sequentially, it’s like some two forty basis points uplift. So it seems like, I mean, have these effects come through just now in the quarter? Is there a positive impact from Liadan here given the lower margin profile in other markets? Or just how should we think going forward?
I mean is this a do you think that it’s reasonable to extrapolate this margin to some extent? Or will we see a partial reversal? Just anything on that would be really appreciated.
Erik Stenfors, CEO, Hanza: I can also add before you say something more, Lars, that we have also stated that the profitability is not a question of where the cluster is located, like Lars said, but rather how mature it is, how well organized it. We have a special concept where we really have to create the cluster. It takes some times, but it’s really efficient when it’s in place. And in Poland, it was all about this acquisition of Orbit one that initiated the right size. We could do the things we like to do.
We could have specialized factories and all that. So it’s and we were running about 6.5% something before the recession. And now we are up to 7.5%. It’s nothing dramatic. It should be above 8% like main markets.
Josh, would you like also to comment more on this? No.
Lars Akerblom, CFO, Hanza: I can comment on on you asked about if Leyden contributing. And, yes, as as we have said in this this call, the the the main challenge in in in Leyden is is in Finland. So Leyden has the the the most negative impact on the group in main markets and not not in other markets. And as Eric said, Poland is is the main difference. Orbit one coming in in in other markets at lower margin, increasing the margin.
And and then more or less, all different all the clusters in in in other markets are increasing profitability, but not dramatically. It’s it’s in line with our expectations.
Anders Akerblom, Analyst, Nordea: Okay. No, that makes sense and kind of negates my next question, which was going to be why margins were down so much in main market sequentially on the healthy organic growth. So mainly as Lia then Finland is the most sort of challenged short term in terms of elevated costs, if I understand you correctly.
Lars Akerblom, CFO, Hanza: Yes. I mean, it’s really not that dramatic either. You you you have a big factory move into a large factory and and you start up. And before you get full efficiency and, are are able to to get the profitability on the level where it should be, combined with the high demand of sales, that that’s, it’s it’s not not unusual that that takes additional cost in order to keep the customer happy.
Anders Akerblom, Analyst, Nordea: Makes sense. And asking on recent acquisitions. I mean given in part that, I mean, obviously, you’re buying these companies on rolling earnings. How do you sort of ensure that even in a more challenging market when profitability is a bit more constrained that this is value creative? And I mean, particularly then with regards to integrating these companies in an efficient and good manner and raising profitability.
Could you talk anything about your expectations for not in the least, Lia, then in terms of when the profitability uplifts could be expected to be realized?
Erik Stenfors, CEO, Hanza: I can maybe start there, Lars. I think that in general, if you look at, for instance, Orbit, we acquired a year ago, this is a sunshine story, a company that has a maximum count to 6% margin, goes down quickly when the volumes goes down, has not gone up again. And now it has the same, margin as Hamza. So what I think is when we buy company that, of course, we choose them carefully. We are looking for competence, how to expand our offer to the customer.
So the input is silver, but the output is gold. And then we then talk about Yeah. The other
Anders Akerblom, Analyst, Nordea: I guess I maybe mean
Erik Stenfors, CEO, Hanza: Okay. I understand it. But if you then look at Leyden, so there are different challenges in different ways. So all of it was lower volumes. In in Leyden, we have the opposite story that we have increasing volumes.
So in in any way, our concept helps. It restructures. And you see, you were pointing out that we had a decrease organically in other markets, still we’re increasing the margin. So of course, sale growth helps to increase the margin, but we can also increase the margin when the volume is down. So, I expect, to answer your question about Lairden, that we should have a quick rise of the profitability when the capacity exercise combining Lairden with the rest of the group is done.
Now we were just in the integration phase, so we had to quickly start with the, capacity expansion program also, but we are quite used to that. So that will be within this year. And that’s why we can also restate our financial goals for this year.
Anders Akerblom, Analyst, Nordea: Not restate, reiterate your your financial targets for the year. Right? Just so
Erik Stenfors, CEO, Hanza: I can understand. Reiterate is a better word. Yep. Yeah. Yeah.
But you see what we have I thought
Anders Akerblom, Analyst, Nordea: I missed something.
Erik Stenfors, CEO, Hanza: Yes. Old answer is then increasing margin by 0.5% unit per quarter, and then you have really on top of that. It’s not complicated mathematics.
Anders Akerblom, Analyst, Nordea: No, no. And just one final question, if I may, on the recent acquisition of Melectria. I just noted that kind of looking at revenue per employee was about SEK 1,000,000, quite a bit below the average in your most recent acquisitions, which is around, say, 1,500,000.0. Could you specify a bit what drives this? I mean, if it’s only kind of more manual processes and if you expect room for efficiency improvements in this operation and possibly then also kind of the costs associated with potentially pursuing efficiency measures, if there are any to begin with?
Erik Stenfors, CEO, Hanza: So we will not go into any details regarding this acquisition. But yes, it’s more labor intensive. And you cannot really calculate number of people. You have some customers where we are fully automized production with almost no people involved. And then we have a lot of manual labor depending on volumes, depending on target area and so forth.
But again, we will give you much more details when we have to
Anders Akerblom, Analyst, Nordea: But is there automation opportunities?
Erik Stenfors, CEO, Hanza: Yes. I think that in the military sector, we don’t run into high volume so often, which makes it more specific every case. But we do have a plan how to increase capacity, which we will come back to in September.
Anders Akerblom, Analyst, Nordea: Okay. Sounds good. Thank you very much for taking my questions.
Erik Stenfors, CEO, Hanza: Thank you.
Conference Moderator: Question comes from from Goldman Sachs Sachs. Please go ahead.
Analyst, Goldman Sachs: Yes. Good morning, Lars, Erik. Right. First question here is on demand. And you mentioned that some of your customers are seeing higher demand towards the end of the year.
Could you perhaps specify if this is broad based or specific sectors?
Erik Stenfors, CEO, Hanza: I think that is the news because we have always had sectors growing even though in this lower economy. So we saw energy and defense, security growing, but now we see more in general. So and I think if you’ve been looking we cannot give details on our customers, but if you’ve been looking at the reports, you see some upturns in the mining sector, you see some upturns in automation companies. So there is some areas which are moving now, different areas, which is really, really good.
Analyst, Goldman Sachs: Got it. And second one on cash flow has been quite solid year to date. You previously mentioned that maintenance CapEx will well, CapEx needs will not be that high this year considering you recently acquired Lidom. And also now with the latest acquisition of Elektria. Wondering how we should think about CapEx needs going forward into next year.
From my point of view, it looks like it should be fairly low levels next year as well.
Lars Akerblom, CFO, Hanza: I can answer on that one. It’s it’s not only the fact that Lia then had a high standard and and and new machines and no major needs of of investments. It’s it’s also that we, in the old hands, so to say, invested quite a lot previous years. And we’ve been saying that CapEx level will go down. What you see in both Q1 and Q2 now is that the investment level, if you exclude the acquisitions and also if you exclude factories, is a lot lower, and we expect that to continue.
We will, of course, not stop investing. There will be investments in in replacing machines, etcetera. And if we see that the volumes are the increasing again, then then you will see an increase of of investment, in in in the future, of course. Melektria is with the 300,000,000 SEK compared to the little bit 6 and a half billion or so in in in Hansa. It’s not a major part.
So you will not see any major impact on on that acquisition for for for investments. And also that that business is not that heavy in investment needs either.
Analyst, Goldman Sachs: Great. And finally, perhaps just on operating cash flow now, we should think about this going forward. Do you have a specific cash conversion target you’re aiming for?
Lars Akerblom, CFO, Hanza: No. We have not set that. What what we have is the net debt compared to the EBITDA that shall be under two and a half times. And as you see, we are on 2.1. It will increase a little bit with when we do the acquisition of Milletria.
So that’s the only financial goal we have related to the net debt.
Conference Moderator: Next question comes from Jakob Soderblom from Carnegie Investment Bank. Go ahead.
Jakob Soderblom, Analyst, Carnegie Investment Bank: Good morning, Erik and Lars. Can you hear me?
Erik Stenfors, CEO, Hanza: Yes. Good morning.
Jakob Soderblom, Analyst, Carnegie Investment Bank: Perfect. Yes, two short questions that following up on my end here. I was wondering if you could talk a bit about sales activities during the quarter. And if you compare it, I’m guessing then, have you seen some green sprouts across your different sectors and so on. But how can you talk about anything?
You haven’t released any real new MIG. There has been a lot of other focus during the first half of the year. But just if you could talk something about if you had any view around how demand then has changed across the quarter, starting from April, kind of a bit of a hesitation, I’m guessing, with everything going on with trade policies. So but what are you seeing now? You have entered the summer months, and if you can give some color on this.
Erik Stenfors, CEO, Hanza: So I think this was mentioned it was mentioned in the report that, first of all, if we look at the Linx program, this has been really successful. And we are saying that already this autumn, we will be able to launch new deals. So that has been really successful program. It’s something that really fits the market, our concepts. In general, sales is good.
We have had a number of new discussions, and that’s also the challenging part that we cannot reveal so much until the deal is done and maybe also old suppliers are excluded. So but I can promise you, you will hear some news about the new sales during the autumn.
Jakob Soderblom, Analyst, Carnegie Investment Bank: Excellent. Yes, the final one. I’m guessing a question on inventory development, have been by natural reasons coming down quite a bit as you look at multiple of the sales. Do you have any type of targets you around this? Do you expect to come back like pre COVID levels?
Or I mean, a bit of a different supply chain situation now than it was a couple of years back. But what can we expect from it? Is it so it’s a drop down below 20% compared to sales? Or how do you view this going forward from here?
Lars Akerblom, CFO, Hanza: As you said, Jokop, we are quarter by quarter or so decreasing stock levels compared to to sales. And and what we are focusing on is is actually the total working capital because it also has a has a impact on type of of products and product mix and customer mix. But we we have not set externally any sort of target figures on the working capital level compared to sales. We have said previously that we aim to to come back to pre COVID levels, but we have not set any any sort of target on that one.
Jakob Soderblom, Analyst, Carnegie Investment Bank: Can also Let you on that. And if you let you on. Yes.
Erik Stenfors, CEO, Hanza: Yes. To add on that No.
Jakob Soderblom, Analyst, Carnegie Investment Bank: Sorry. Continue.
Erik Stenfors, CEO, Hanza: Okay. Thank you, Stoe. To add on that, one of the challenges is if you’re a product only company that you have all these different suppliers and the material is flowing back and forth. And and the it’s all about throughput time. The time before between you bought a component and you have the ready product.
And there we have a beauty of the scale. So the larger and more integrated our clusters become the throughput time also become shorter. So here, we also have advantage, both for ourselves and for our customers, which brings down the inventory.
Jakob Soderblom, Analyst, Carnegie Investment Bank: Yeah. That makes sense. I think that was all for me. I just wanna wish you a happy summer now.
Erik Stenfors, CEO, Hanza: Yeah. You too. Thank you for calling.
Conference Moderator: There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.
Erik Stenfors, CEO, Hanza: Okay. Then I like to thank you again for your time and your attention today. And hope that you will keep following us. There’s much more to come. Thank you, and bye for now.
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