PCB manufacturer NCAB Group AB (STO: NCAB) has released its half-year results for January–June 2025, demonstrating steady order intake growth despite adverse currency effects and geopolitical uncertainty.

April–June Performance

 ● Net sales remained largely stable at SEK 934.0 million (935.1), but increased 10% in USD. For comparable units, sales declined 7% in SEK, yet rose 3% in USD.

 ● Order intake rose 5% to SEK 985.0 million (937.8), up 16% in USD. Comparable units saw a 2% decrease in SEK, but an 8% increase in USD. The book-to-bill ratio was 1.05.

 ● EBITA fell to SEK 93.9 million (120.4), with a margin of 10.0% (12.9). Exchange rates reduced EBITA by SEK 17 million and the margin by 0.8 percentage points.

 ● NCAB incurred SEK 9.6 million (13.0) in costs related to the implementation and amortization of its new IT platform.

 ● Operating profit reached SEK 78.3 million (105.5), profit after tax was SEK 40.5 million (73.5), and earnings per share came in at SEK 0.22 (0.39).

 ● Cash flow from operating activities was SEK 93.6 million (101.2).

January–June Summary

 ● Net sales edged up to SEK 1,892.3 million (1,885.7), up 4% in USD. For comparable units, sales dropped 7% in SEK and 3% in USD.

 ● Order intake rose 5% to SEK 1,998.7 million (1,907.5), up 9% in USD. On a comparable basis, order intake declined 2% in SEK but increased 1% in USD.

 ● EBITA declined to SEK 193.9 million (263.0), with a margin of 10.2% (13.9), negatively impacted by currency effects of 0.5 percentage points.

 ● Operating profit was SEK 161.0 million (232.8), return on equity was 13.5% (26.0), and profit after tax stood at SEK 92.5 million (163.3).

 ● Earnings per share were SEK 0.49 (0.87), and cash flow from operations was SEK 146.8 million (194.1).

Key Events in Q2

 ● On April 23, NCAB signed an agreement to acquire 100% of B&B Leiterplattenservice GmbH in Germany.

 ● On April 24, the Board withdrew the previously announced dividend proposal ahead of the AGM.

 ● NCAB refinanced its existing loans with a new five-year facility totaling SEK 750 million, offering improved terms and acquisition flexibility.

CEO Commentary: Navigating Headwinds, Seizing Opportunities

President and CEO Peter Kruk noted that order intake growth remained strong, particularly in USD, with an 8% organic increase and a 16% increase including acquisitions. However, the weakened USD negatively impacted net sales and EBITA when converted into SEK, with a SEK 27 million hit to gross profit and SEK 17 million to EBITA.

Geopolitical developments, particularly the U.S. administration's shift in trade policy, contributed to market caution. In North America, earnings improved thanks to stronger sales, although order intake slowed due to front-loaded large orders and tariff-related uncertainty. NCAB’s new business system was implemented in the U.S. during the quarter.

In the Nordics, order intake surged 15% despite currency challenges, while sales rose 4%. However, margins were pressured by exchange rates and product mix. Europe remained subdued due to macroeconomic conditions, though order activity showed signs of recovery, especially in aerospace. Order intake in USD rose 8% organically.

In the East, business remained stable, with a 12% increase in USD order intake. NCAB continues to benefit from its strong high-tech factory base.

Outlook

Looking ahead, NCAB expects to expand its market share through both organic growth and acquisitions. The B&B Leiterplattenservice deal will strengthen its presence in Eastern Germany. With a robust balance sheet and active M&A pipeline, NCAB is well-positioned for continued growth.

"In today’s turbulent environment, NCAB remains a stable partner with a global-local presence and a validated, diverse supplier base," said Kruk. “This ensures our customers receive security, flexibility, and consistently high service levels.”