BTS Group AB (publ) announces earnings update for the second quarter and lowered outlook for 2025

Core Viewpoint - BTS Group AB has announced a disappointing earnings update for Q2 2025, with a lowered outlook for the entire year, indicating a shift from expecting better EBITA to anticipating worse EBITA compared to the previous year [1][2]. Financial Performance - The company expects net sales of approximately SEK 720 million, down from SEK 730 million, and EBITA of SEK 85 million, down from SEK 110 million for the second quarter [1]. - The negative profit deviation is entirely attributed to BTS North America, which is facing negative revenue growth due to inefficient sales operations and unfavorable USD exchange rates, along with severance and one-time costs [2]. Strategic Response - A program has been initiated to restore revenue and profit growth in North America, which includes new leadership and a revised strategy for marketing and sales [3]. - Other regions, including BTS Other Markets and BTS Europe, as well as the recently acquired executive coaching business of Boda in North America, continue to show healthy growth in revenues and EBITA [3].