KH Group Plc’s Half-Year-Report 1 January–30 June 2025: KH-Koneet’s profitability declined – NRG performed well, orderbook at record-high level

Core Insights - KH Group's net sales from continuing operations increased by 4% year-on-year to EUR 95.9 million for the first half of 2025, while operating profit decreased [6][10] - The profitability of KH-Koneet declined despite a 9% increase in net sales, indicating challenges in maintaining margins [6][10] - The Nordic Rescue Group experienced a decline in net sales, but its operating profit remained stable compared to the previous period [3][10] Financial Performance - For the second quarter of 2025, net sales were EUR 54.2 million, up from EUR 52.2 million in the same period last year, with a comparable operating profit of EUR 0.8 million, down from EUR 2.4 million [8][9] - The first half of 2025 saw comparable operating profit at EUR 1.0 million, a decrease from EUR 2.3 million in the previous year [10] - The Group's equity per share decreased to EUR 0.83 from EUR 1.25, with a return on equity for the rolling 12 months at -40.8% [6] Strategic Developments - KH Group is in the process of divesting its Indoor Group business, with a financial advisor engaged to explore options, aiming for completion in 2025 [4][12] - A reform program in Indoor Group is expected to improve operating profit by at least EUR 10 million annually by the end of 2026, with significant savings already realized in 2025 [5][12] - The company aims to focus on the growth of its core business, KH-Koneet, while assessing exit opportunities for other business areas [12][13] Future Outlook - The guidance for 2025 estimates that net sales will remain around EUR 194.0 million, with comparable operating profit expected to be approximately EUR 7.2 million, maintaining levels from the previous year [13][14] - The company plans to invest in core business growth and pay dividends after significant exits, adhering to its balance sheet structure and financing agreements [12][13]