Earnings call transcript: Troax Group Q2 2025 earnings beat forecast, stock dips

Troax Group reported its Q2 2025 earnings, revealing a slight beat on both EPS and revenue forecasts. The company posted an EPS of €0.11, surpassing the projected €0.105. Revenue reached €68.7 million, slightly exceeding the €68.5 million forecast. Despite these positive results, Troax’s stock fell by 5.7%, closing near its 52-week low at $14.63, reflecting investor concerns over declining order intake and restructuring costs. InvestingPro data shows the company maintains strong financial health with a current ratio of 2.53, indicating robust liquidity to meet short-term obligations.

Key Takeaways

• Troax Group’s EPS and revenue slightly exceeded forecasts.
• Stock price fell by 5.7% following the earnings release.
• Decline in order intake, particularly in Northern Europe and the Americas.
• Ongoing restructuring efforts, including headcount reduction and facility closures.
• Strong performance in the machine guarding business.

Company Performance

Troax Group experienced a mixed quarter, with slight growth in its machine guarding business offset by declines in racking and storage products. The company reported a 6% year-over-year decrease in order intake and a 4% decline in sales. Despite these challenges, Troax is investing in North American manufacturing, with a new factory in Tennessee, and focusing on process segment growth.

Financial Highlights

• Revenue: €68.7 million, down 4% year-over-year.
• Earnings per share: €0.11, down from €0.14 in Q2 last year.
• EBITA: €9.9 million, with a margin of 14.4%, down from 16.8%.
• Free Operating Cash Flow: €8.9 million, with a cash conversion rate of 90%.

Earnings vs. Forecast

Troax’s actual EPS of €0.11 slightly surpassed the forecast of €0.105, marking a 4.76% positive surprise. Revenue of €68.7 million also exceeded the forecast of €68.5 million, indicating a minor but positive deviation from expectations.

Market Reaction

Despite the earnings beat, Troax’s stock dropped by 5.7%, closing near its 52-week low. The decline reflects investor concerns over declining order intake and restructuring costs, overshadowing the positive earnings surprise. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, trading at an EV/EBITDA multiple of 15.81x. The company has demonstrated consistent shareholder returns, having raised its dividend for four consecutive years, with a current yield of 2.55%.

Outlook & Guidance

Troax remains cautiously optimistic about Q3 2025 and beyond, anticipating increased customer investments in the warehousing segment. The company expects significant warehousing investments in 2026 and plans to host its first Capital Markets Day on November 5th.

Executive Commentary

CEO Martin Nistrum expressed optimism about future prospects, stating, "Clear ’26 looks overall definitely more positive than ’25 has turned out to be." He also highlighted the company’s commitment to acquisitions, saying, "We’re pushing and pushing hard for [acquisitions] during the second half of the year."

Risks and Challenges

• Declining order intake in key regions, such as Northern Europe and the Americas.
• Restructuring efforts, including headcount reduction and facility closures, could impact short-term performance.
• Uncertainty in the automotive and warehousing sectors.
• Tariff uncertainties affecting the US market.
• Potential supply chain disruptions impacting manufacturing.

Troax’s Q2 2025 earnings call highlighted both achievements and challenges, with the company navigating a complex market environment. While the earnings beat provided a positive note, the stock’s decline underscores investor concerns that the company must address in the coming quarters. For comprehensive analysis and detailed insights into Troax’s performance metrics, valuation, and growth prospects, access the full Pro Research Report available exclusively on InvestingPro.

Full transcript - Troax Group AB (TROAX) Q2 2025:

Martin Nistrum, President and CEO, Trawaks Group: Hi, everyone, and welcome to the second quarter interim report for the Trawaks Group. My name is Martin Nistrum, and I’m president and CEO of the group. And together with me, I’ll have Anders Yeklev, and together, we will present the second quarter results. And after the presentation, we will open up for a Q and A. So without further ado, let’s dive into some news and, of course, the quarter.

Here we go. So the second quarter was pretty offered a very interesting macro environment. And in total, we reported a minus 6% order intake growth. Europe continued pretty slowly as well as Americas, while APAC was more stable in the first quarter. If we look to North Europe, we continued to develop weekly, driven by the automotive as well as the warehousing segments.

Southern Europe grew in the quarter and we saw this being driven by general industry as well as the process segment. We had a good run-in The Americas in the first quarter, but we saw from the April that our customers have become a bit more hesitant during the quarter when figuring out and analyzing what the potential tariffs and so forth would mean, I’ll come back to this in the next slide. APAC had a very strong quarter in the first quarter, as you know, so very strong start of the year. In the second quarter, we were more flattish when we report in euros. If we look into local currencies, we also have a small single digit growth also in the APAC region.

Moving over to the profitability. We came in at 14.4 EBITA margin in the quarter, mainly driven by lower volumes in Europe, but also due to FX effects. We had a solid gross margin, in line with our informal target of around 40%. We initiated a cost reduction program to get to a sustainably better place, and I’ll have a slide in a few slides from here going into what that entails. And last but not least, we also had FX headwind and FX losses, which impacted the result by roughly 70 bps.

Our working capital continued to be we continue to work disciplinely with this, and we kept, I think, our cash flow on a reasonable level as well as done with a stable net debt. And I do think that discipline on inventory management in terms of accounts receivable as well as accounts payable were all in good shape in the quarter and continued to be so, which means that our balance sheet with a net debt to EBITDA of 1.1 means that we have room for further both acquisitions as well as organic investments where we think that’s appropriate. During the quarter, we’ve also made progress on some of our strategic priorities and have decided to highlight what we have now decided to do in Europe and that comes very much back to simplifying our supply chain as well as simplifying our racking portfolio. If I then move over to, I think, the big news in the quarter, we towards the end of of June, we were released that we are taking action on our on our cost side and optimizing our organization a bit, the this pretty much entails three things or contains three things. During the second quarter, we have, yeah, have had to say goodbye to roughly 100 employees.

And this is a you could say an adjustment based on the fact that we have lower volumes, mainly in Europe as well as in The U. S. We have areas where we’ve seen SG and A efficiency potential and of course, we’ve also taken our strategic priorities into account. Based on the first part of this cost reduction program, we will see run rate saving of roughly €5,000,000 a year, which will then come into effect in the third quarter this year. The second part of the program is to streamline the manufacturing footprint in Europe.

And here, we think that and see that we will have plenty of benefits by moving the warehousing products and the racking products. So we will move those from Poland and move those to existing facilities in Sweden. This also means that we can manage the racking portfolio, so shelves, dividers, anti collapse systems in a better and more effective way. This also means that our factory in Poland will be closed and as an impact of this, will have additional 125 employees being affected in Poland. This will also mean that we will have a few new recruitments in Sweden.

The run rate savings from the second stream of this is roughly €5,000,000 a year and we will we aim to be have our Polish facility closed and have the move done by the end of this year, which means that the run rate savings will come into effect in the first quarter of twenty twenty six. So in total, we have €10,000,000 a year of full run rate savings coming from these two. And in the second quarter, we have then booked and as reported as one offs in the second quarter, we have restructuring costs, including severance pay, but also moving costs and some asset write downs, which amount to EUR6 million. The third part of optimizing our supply chain comes back to what we disclosed a few quarters back, which is our investment into the North American manufacturing. And we have decided to build a new factory in Tennessee and this will do both because we need higher capacity due to the growth we have had and will have.

But also we see that there is a gap in efficiency where our American operations are not as effective and as efficient as are we’re running in Europe, which means that we have both the ability to produce more but also at a higher efficiency. And I think we’re doing really good progress here according to the plan and we will ramp up during the beginning and mid of twenty twenty six. This will also add additional savings on top of the first and the second stream of this program. But we’re not yet in a position where we want or could quantify what that means in terms of money. I would also like to welcome you to our, in fact, first Capital Markets Day.

So this is more of a heads up. We’re an early early welcoming. So on the November 5, we will have a Capital Markets Day in Hillestorp where we will talk about our future vision, our business, and future ambitions. You’ll get the chance to to hear presentations, meet a few of the group management members. We’ll walk you through our factory, and, of course, we’ll we’ll hopefully have a lot of good discussion and dialogue throughout the day.

So there will be more information and invitations coming out after the summer period during during q three. And there will, of course, as always be more information available at our homepage. So then let’s dive a little bit more into the market and what we are seeing. And I’d say if we start with how we the lens through how we view the world, we are looking at this through the lens of geography as well as end market segments. So if we start with Northern Europe, we were down in total by 13%, order intake change year on year.

This decline is driven by automotive, but mainly in mainly from warehousing. I’d say this, though, that we we have had a a general demand in Northern Europe that has been somewhat muted. And I I would say, and we we could already in q two see that there is some more end light at the end of the tunnel. And I’d say that goes for general industry where we’ve seen growth in the quarter as well as in process. And from process, I’m very happy to see that we have a green arrow because it’s also one of our strategic growth priorities where we can gain share also in this very tough market.

Moving over to Southern Europe, which was down or which was up 5%. Also here, automotive declined a bit as well as warehousing. But also here, we saw good growth coming from the process as well as the other segments. So all in all, we are, in fact, up a bit more than 5%. So from that point of view, I’m pretty pleased with the development in the quarter.

Then moving over to Americas, where we were down 14%. And here, we clearly see a shift in how the market and the market temperature has changed between quarter one and quarter two. Quarter one, we saw we were a bit more positive. Now I think in U. S, we see that customers are, generally speaking, a little bit more hesitant.

A lot of our products come together with investments and those investments, so machinery, equipment, robots, etcetera, are usually manufactured outside of The U. S, which means that they are also then very much impacted by whatever the tariff policy will be. So I think from that point of view, it’s probably not super strange. We saw automotive continuing roughly on the same level, warehousing on its way down, where process and others were down flat respectively, but down all in all in Americas. In APAC, we reported flat when reporting in euros.

If we continue or if we look at local currencies, we were up roughly 7%, 8% in local currencies. So there is underlying growth in APAC, but due to currency, we’re reporting flattish. Now that being said, I do think that APAC, if we consider the full first half of the year, is up 40% year on year. So I still think that we have a good growth momentum in the APAC region. If we then look at this more from a product point of view, I think we have a stable, slightly growing machine guarding business in the quarter.

So a lot of this drop really comes from the racking products and the storage products, which might be good to know. And all in all, we then reported a minus six including currency for the quarter. So I’d say there are some lights at the end of the tunnel when it comes to general industry. And I’d also say that we now start to see more activity in the presales on the warehousing side. So this is a segment which has been very, very slow and continued to be slow in Q2.

But we do think that there is more activity which then bodes well for the development towards the end of the year as well as going into 2026. And with that, I’ll hand over to Anders to run us through some numbers. So please, Anders, go ahead.

Anders Yeklev, CFO, Trawaks Group: Thank you very much, Martin. I will go through this pretty quickly as usual. I will start with the order development. In the second quarter of this year, we reached EUR 65,300,000.0 in orders compared to EUR €69,600,000 in Q2 of last year. That is minus 6% decline and that goes both organically as well as in total, meaning including structure and FX.

Next, please. When it comes to sales, we reached SEK 68,700,000.0 in sales compared to SEK 71,900,000.0 in Q2 of last year. That is a 4% decline both organically as well as in total. Next. On the EBITA side, we reached €9,900,000 which is 14.4% EBITA margin to be compared with €12,100,000 or 16.8% EBITDA margin in Q2 of last year.

The decline mainly comes from the drop in volumes, whereas Martin said before, we kept the gross margin on a stable level. We also had some headwind on the FX loss side in this quarter coming from the revaluation of receivables and payables mainly in the balance sheets. So excluding this FX loss impact, we reached 15.1% in Q2 of this year compared to 16.5% in Q2 of last year. Next, please. When it comes to working capital, it’s stable, I would say, in terms of days.

We see a decline in absolute numbers, mainly related to the decline in sales volume. But overall, a very stable, I would say, working capital level. Next. Cash generation. We had a free operating cash flow of EUR 8,900,000.0 in the quarter, and that is a 90% cash conversion in relation to EBITDA, which we believe is a pretty good level.

So we are pretty happy about that one. Next. And also on the net debt side, we are at 1.1 net debt in relation to EBITDA, the twelve month rolling EBITDA, which is also a good and low level, we believe, which gives us an opportunity to for further acquisitions looking into the future. And the next one. Here we have the summary basically of what I mentioned in the previous slides.

The only thing to be added there perhaps is the EPS where we hit $0.11 for the quarter compared to $0.14 in Q2 of last year. And with that, I hand over again to you, Martin.

Martin Nistrum, President and CEO, Trawaks Group: Thank you, Anders. So in summary, we had a pretty eventful second quarter. We saw Europe continuing slow. We saw Southern Europe growing, while we saw North Europe continuing to decline. We had some more hesitation in The US, and we continued to be flattish or slightly positive in local currencies in APAC.

The margin is was 14.4 driven by the production volumes as well as the FX effects. And we continue to be disciplined when it comes to our capital management side and we continue to generate a reasonable and good cash flow in the quarter. So with that, I’d say that we prepare to open up for Q and A. So please raise your hand, and I will open up up the mic one by one. I think we will do ladies first with Annalise.

Annalise, Analyst: Yes. Hi. Thank you for taking my questions. So my first one is if you can give us some details on momentum in ordering in the different regions during the quarter, so to say, the year over year change in the beginning of the quarter was a bit different in comparison to to the end of the quarter?

Martin Nistrum, President and CEO, Trawaks Group: Yes. I’d say this, Anna, that I think it varied a little bit between the regions. So I think Europe was pretty much kind of the same through the quarter. Nothing material changed. I think in The U.

S, we probably had some hesitation April, then May, probably below point, and then June, probably some kind of acceptance. And if if I’m being half the glass is half full person, probably June was a little bit on the better side sequentially. But overall, we’re quite a bit down in The U. S, as said. Asia, I think, is still pretty small and pretty lumpy, so I wouldn’t say anything around really about the market dynamics or I wouldn’t draw any specific conclusions on that.

I think it’s more, in fact, more customer driven and customer specific on that side than than some general market development.

Annalise, Analyst: Okay. Great. So basically, the order intake is sort of reflecting the current business momentum, so we should sort of assume a normal seasonal pattern in conversion rates between orders in Q2 in terms of sales in Q3? And then a question on the progress on the cost savings. Should we expect the full pace already in Q3?

Or could there be slightly more in Q4 in comparison to Q3 of the 5,000,000 there?

Martin Nistrum, President and CEO, Trawaks Group: Yeah. I’d say when it comes to if we focus on the two first elements, so when it comes to headcount reduction, so the first part of the program, that has been fully executed during Q2. So it means that portion and that run rate should be expected to full extent already in Q3. When it comes to the factory movement and factory move from Poland to Sweden, obviously, this is a gradual process where we need to move equipment and lines and so forth step by step. So it means that we probably will see some of this impact in Q3 and certainly some in Q4.

But we’ve been probably a bit conservative here and said, well, assuming we’ll close Poland down in Q4, we’ll have the full run rate effect from that initiative starting from Q1. But it’s a gradual process where we move pretty much line by line and machine by machine. And with that, we people will also leave our Polish facility. So it will be a gradual process, but we think of it as 100% impact starting from Q1.

Annalise, Analyst: Okay, great. And then talking about Northern Europe, it seems you said that the warehousing segment is the one that stands out basically on the weak side. Do you think there’s any impact from the whole sort of restructuring initiative? Or is this fully market related?

Martin Nistrum, President and CEO, Trawaks Group: No. I’d say if we look at what we see during the quarter, don’t think it’s I think it’s more of a market driven thing than a home cooked thing, if I may use that word. So I think it’s definitely more market related than something that is company specific. At the same time, though, now Q2 was, I would say, very weak from our standpoint. At the same time, I do think we see some of the larger customers in this space announcing activities and starting to starting projects in our presales phase.

So from that point of view, I’m somewhat positive that we’ll see the light at the end of the tunnel. And whether we’d be fully bottomed out now in Q2 or whether that would go continue into Q3, I’m not sure. But I certainly know there is some light at the end of the tunnel in this segment.

Annalise, Analyst: Okay. Great. And then just a final one from my side before I get back in line. The sort of hesitation that’s been an effect from, like, the terror turmoil and and such, has that had any greater impact in your sense in any of the different end markets such as automotive or warehousing? Or

Martin Nistrum, President and CEO, Trawaks Group: I think it’s a little bit across the board, frankly. I think we so I think when it comes to, you know, what we call Aldris or you can say it’s a proxy for general industry, I think it’s probably I’d say it’s more general hesitation. When it comes to warehousing, I think we’d see both customers powering through with their initiatives and continuing, and I think we see some customers hesitating. On the automotive side, I’d say all the all the big four, if we take the American manufacturers, are are still are a bit more hesitant as to what what should be done and by when and so forth. So I’d say that’s also probably a bit more of a general nature to that.

But warehousing is is more mixed where you’d have we have customers, you know, pushing forward and customers being a bit more on the hesitant side.

Annalise, Analyst: Great. Thank you. I’ll get back in line.

Martin Nistrum, President and CEO, Trawaks Group: Thank you, Anna. Then next, see if I can allow Johnny Ginen.

Johnny Ginen, Analyst: Yes. Hello. Can you hear me?

Martin Nistrum, President and CEO, Trawaks Group: Wonderful. Hi, Jonny.

Johnny Ginen, Analyst: Hi. Good afternoon. Just have a couple of questions from my side as well. I think I will start with a follow-up question on Anna’s question there, and I want to understand the order trend in Americas a little bit better. So I mean, looking at the book to bill, it looks to be quite a lot below one here at 0.75 here in the quarter.

And looking at your arrows, they also look to be clearly negative sequentially here on the market development. And I understand it’s very uncertain on the market here after Liberation Day, etcetera. But could you maybe elaborate what you’re seeing here and what you’re here for your dialogue with the customers, the prebuying activity, etcetera, in Americas? And also given the funnel or pipeline you have right now, what is your best guess for outlook here for second half of the year? I mean, could we expect a rather flattish sequential order development from here?

Or or has the momentum stabilized or or worsened further here going into q three?

Martin Nistrum, President and CEO, Trawaks Group: Yeah. I’m If we start with the first one, Jani, I think I I I think the the discussions are a little bit different in the different end segments. I do think that if we look to automotive, first of all, I do think it’s it’s pretty much the same type of of discussion, same type of hesitation that they’ve had to remake some of their plans. And, you know, in this, there is, I think, now more preference for hybrid and combustion over EV.

At the same time, there is also this where should things be produced. Is this still Mexico or is this U. S. Or what parts Canada will we utilize? So in a sense, there are two uncertainties at the same time.

So I do think the big carmakers would think slightly the same if we talk about the American makers. When we look at foreign makers, I’d probably say they are pushing a little bit more for investments into U. S. I think we see that from parts of the European ones, and we definitely also see that from parts of the Asian ones, the Korean and Japanese ones. So that’s one, you could say, one cluster of discussions.

Then when it comes to warehousing, I’d say this is very split. So we have few customers who have plans, who have put already the foot on the gas pedal, and they are continuing. There are also projects which are a bit more have gone into this hesitation phase as well. So pretty mixed picture on the large projects. On the smaller, what we used to call bread and butter business, and I think that kind of gives the temperature a little bit.

I think to begin with in April, there was a bit of, okay, what’s happening now? But people kept going for some time, then May was probably the the bottom or the trough when it came to, okay, let’s do nothing. And then, you know, I I I do think in June, we saw a little bit of of more decisiveness in that sense. So a bit a bit of a dip on that. When it comes to I’m not sure if your your second and third there, Johnny, were if they were meant for US or if they were meant for for kind of general there.

Johnny Ginen, Analyst: I think if we start with The US, but you can also talk broadly, it was also very interesting.

Martin Nistrum, President and CEO, Trawaks Group: Yeah. No. I think I think in The US, depending a little bit on the the big beautiful bill and and other things, I do think that if one believes that consumption is going to if there is growth in The US and if there that needs to be handled that needs to come from consumption. So if the main scenario is more consumption, that means that there needs to be more warehousing definitely. And there is also a bit better supply demand balance in The US when it comes to warehousing.

So from that point of view, I’m a bit more optimistic that people will start to make decisions again when it’s been slow in the second quarter. I think the car car industry will take a little bit longer because there are platform platforms and other things that usually takes a little bit more time before it can can turn into decisions. Generally, I and then if I move over to Europe, I I do think that general industry is and the the overall temperature, and I hear some of that from my colleagues as well, I I do think there are some some good signs that we we are we’re getting to a place in the next or next quarters, which is which is a little bit more positive than what we’re where we’re currently at.

Johnny Ginen, Analyst: Yeah. Yeah. I understand that. It’s a lot of moving parts here, I mean, with the, I mean, the the Liberation Day and and tariffs, etcetera. So but looking at in America for a while here, it looks like the momentum slowed down quite a lot here if you compare Q2 to Q1.

And I also don’t just try to understand how much was due to the Liberation Day and also like given how your late cyclical nature of your business should we interpret that as lot of started projects already is now closed and that you’re now more dependent on newer projects coming along? Or is

Martin Nistrum, President and CEO, Trawaks Group: No. I I that type of department? I I think think the pipeline in The US is is pretty alright when it comes to to projects and what has been quoted and what what is being discussed. I think it’s so I don’t think the the underlying activity and the initiatives, I don’t think that’s that’s weak. I think it’s more moving from, you could say, idea to ink on the paper and get going in many cases.

I’d I’d rather read that into the situation more than anything else. I I think in terms of activities and in terms of what’s needed, I I do think that looks, on paper, pretty healthy in The US.

Johnny Ginen, Analyst: Okay. Yeah.

Martin Nistrum, President and CEO, Trawaks Group: Yeah. And and perhaps to that, if I may add, Johnny, I think we also have a bit of a bit of this comparable is also related to FX in the quarter, which impacts the the compare a bit.

Johnny Ginen, Analyst: Yeah. Yeah. Understand that. We’ll we’ll see. Yeah.

But then I also want to follow-up a little bit on your statement that you mentioned somewhat higher presale activity here, which I think you said in the report bodes well for 2026 and onwards. I was wondering, could you maybe elaborate also a little bit here more here how we should think about the timing there? I mean, given what you see now, can we expect to see to interpret that that the bulk of that those orders should convert into sales second half of twenty six, is that the most likely base case, or or how should we think about the timing there?

Martin Nistrum, President and CEO, Trawaks Group: I think it’s again, timing in big projects seems to be very hard to predict. I do think and I think it’s worth noticing that if you look at the big players in the warehousing and intra logistics space, some of them have announced pretty big investment programs in different parts of the world. So it could be Europe, could be Middle East, India, could be also for that matter in The US. So I do think that there is a bit more commitment and a bit more drive from that end, which is is now being then worked on, and eventually, we’ll we’ll see some, we think, good orders coming through. Whether that’s going to be q one, q two, or q three, q four, I think I’m not in a position to to judge exactly which quarter it will be, but I I I do think that clear ’26 looks overall definitely more positive than ’25 has has turned out to be.

Johnny Ginen, Analyst: Okay. Yeah. That’s fair. But, I mean, the best guess then, I mean, given that it’s prebuying activity now, then maybe they’re converted into orders, let’s say, I mean, during first half of next year, then I suppose they are delivered during second half of twenty six? Or is that a fair assumption?

Martin Nistrum, President and CEO, Trawaks Group: Yeah. No, that’s probably a fair assumption. I think we have presales processes which are in, you know, two weeks, and we have presales processes that are one and a half years. So and everything in between. So it it it depends a little bit which which customers here decides to go forward with what.

So it it could be fairly fairly quick, but I’d say pro probably would have more more going into mid second half of next year. I think that’s a fair fair assumption, Johnny.

Johnny Ginen, Analyst: Yeah. Yeah. Understand. Understand. Thank you.

That’s clear. And then just one final one from my side. I mean, demand in Europe is a bit mixed as you mentioned here, but I noticed that you see somewhat higher orders in EMEA South Region, which I think is quite interesting here in the quarter. So maybe I missed it here, but what is driving that? Were there anything particular in Q2 here?

Or was it anything or is it more broadly driven? And has that momentum continued here in Q3, would you say?

Martin Nistrum, President and CEO, Trawaks Group: I think it’s we’re it’s pretty early in Q3. I think the start of Q3 has been good, also in Southern Europe. No, I think when it comes to Southern Europe, I think the main geographies so Italy, France as well as Spain, I think they’re performing well. And I also think that there plenty of projects, especially, you know, general industry. I think there are also investments going into process, especially retail, food, pharma, etcetera.

And I think we’ve we’re chasing our our fair share of that of that growth. And in the second quarter, it I I consider that to to be go it went well from that point of view.

Daniel Lindquist, Analyst: Yeah. Okay.

Martin Nistrum, President and CEO, Trawaks Group: So I think it’s more broad I think it’s more broad based than Yeah. Anything particular that stands out.

Johnny Ginen, Analyst: Okay. That’s clear. Thank you. That was all from me, and happy summer when you get there.

Martin Nistrum, President and CEO, Trawaks Group: Likewise, Johnny. Let’s see. And we have Daniel Lindquist. Your mic is open.

Daniel Lindquist, Analyst: Perfect. Thank you, Martin. So just two quick ones from my side. Given it’s it’s been a bit messy here lately. So just, it would be interesting to hear your base business with the machine guarding.

How is that faring? How much volumes has been lost? And what’s the margin profile for that part? Or the delta is that basically from warehousing and property protection that’s its profitability?

Martin Nistrum, President and CEO, Trawaks Group: Yes. No, sir. Our machine guarding business is doing, in fact, very well. We’d see we think we have grown that business flattish to slight growth. And the margin profile of machine guarding is machine guarding is, in relative terms, more profitable than storage and warehousing.

So pretty much all of the drop is explained by warehousing and storage.

Daniel Lindquist, Analyst: Okay. So down the line, it is really healthy. So Yeah. And then would that mean that you’ve taken market shares if that’s measurable as well?

Martin Nistrum, President and CEO, Trawaks Group: I wouldn’t conclude that on Q2 because I don’t have access to all the competitors’ numbers. But I do think it’s fair to conclude that we, during 2024, took some market share in the core segments.

Daniel Lindquist, Analyst: Okay. Perfect. And then just on M and A, you have the sentence on it on in the report. With the internal measures taken now, there’s nothing stopping you from from, making an acquisition if that would turn up, or is it too soon at this point? Maybe I

Martin Nistrum, President and CEO, Trawaks Group: don’t I would say that on the contrary, I think we’re by taking these measures, I think we make room for other growth initiatives and investments portfolio wise. So I don’t think there is any contradiction at all whatsoever in this. I think what’s standing in between us and acquisitive growth here would be it needs both parties to say yes and agree to evaluation, which with more uncertainty around us might be a little bit more difficult to agree on what is the value. And unfortunately, we weren’t able to close any acquisitions during the second quarter. But be rest assured that we’re pushing and pushing hard for that during the second half of the year.

Daniel Lindquist, Analyst: Okay. Perfect. Great. Thanks, Moe. That was all from my side, Martin.

Have a really nice summer now.

Martin Nistrum, President and CEO, Trawaks Group: Thank you, Daniel, and likewise. Okay. Let’s see. Are there any more questions? In fact, I don’t see any more hands in the air, which means that we will conclude the second quarter interim report for Trollocs Group.

And thanks a lot for calling in and asking questions. And if not before, I’ll see you in a quarter’s time. Enjoy your summers. Bye bye. Bye.

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