Bufab has announced a strengthened gross margin and improved operating profit in its latest financial results for 2025.
Net sales decreased by 4.8% to SEK 2,039 million for the second quarter with organic growth down -0.3%, and order intake slightly below net sales.
For the six-month period from January to June 2025, net sales decreased by 1.6% to SEK 4,224 million. Organic growth was -0.2%, and order intake was slightly below net sales.
Erik Lundén, President and CEO of Bufab said, “Bufab reported a strengthened gross margin and improved operating profit in the second quarter, despite lower demand compared to the previous year. I am pleased with our performance during the quarter, despite tariffs and geopolitical tensions. We are actively working to seize opportunities in an uncertain market and have secured several new major customer projects during the quarter. Our efforts to develop our value creation for customers and gradually reduce our cost base have continued to yield positive results, leading to an improved gross margin and a strong operating margin in the quarter.
“Total revenue for the quarter decreased by 4.8%, largely due to currency effects. Organic growth remained slightly negative at -0.3%. The Asia-Pacific region showed the strongest performance, while the UK/Ireland was the weakest. Demand continued to vary across companies and segments, with customers in the defence sector showing the strongest overall growth. The gross margin strengthened during the quarter and amounted to 31.1 (29.8)%. The increase is a result of our efforts to enhance customer value creation and lower purchasing prices during the quarter and is a key driver in achieving our profitability target.
“Operating expenses decreased by SEK 8 million compared to the previous year, thanks to our focused cost-control efforts but also positive currency effects. As a share of net sales, the cost level increased slightly. We continue to maintain a strong focus on costs throughout the organisation, and the effects are expected gradually during 2025/2026.
“During the quarter, we secured several major customer projects in key segments such as defence, agriculture and general industry. One example is Kverneland in Norway, an international company producing agricultural machinery, where we have been appointed new supplier of C-parts and where the customer particularly value our offering in sustainability, logistics and our global presence.
“The ongoing negotiations on trade tariffs are creating uncertainty in the market. We are closely monitoring developments and are actively working with both customers and suppliers to manage the situation. Our focus going forward is on gaining market share, gradually improving our margin, and delivering a strong cash flow. This puts us in a strong position when the market turns and provides a solid foundation for continued long-term, sustainable, and profitable growth.”
