Swedish flooring manufacturer Kährs reported a 14% drop in order intake and a 24% decline in second-quarter sales to SEK 508 million ($53.3 million), as construction markets remained weak. The renovation market stabilized somewhat, but geopolitical tensions weighed on demand in both Europe and the U.S. Consumer sales grew in both regions, with strong momentum in the U.S. distribution business.

Kährs’ efficiency programs are showing results. The company has already achieved SEK 65 million ($6.8 million) in annual savings, with a further SEK 20 million ($2.1 million) in overhead reductions planned for 2025. Production optimization is expected to deliver SEK 45 million in additional savings, while inventory streamlining freed up SEK 100 million in working capital.

In Q2, operating EBITA came in at SEK 17 million ($1.8 million), down from SEK 34 million a year earlier, for a 3.4% margin. The company swung to an operating profit of SEK 12 million ($1.3 million) compared with a SEK 40 million loss last year. However, the quarter ended with a net loss of SEK 26 million ($2.7 million), and operating cash flow was negative at SEK 39 million ($4.1 million).

For the first half of 2025, sales fell 20% to SEK 1,049 million ($110.1 million). Operating EBITA reached SEK 39 million ($4.1 million) with a 3.7% margin, and operating profit improved to SEK 30 million ($3.2 million). The period closed with a net loss of SEK 26 million ($2.7 million), though operating cash flow turned slightly positive at SEK 2 million ($0.2 million).