Ferronordic Q2 revenue dips amid uncertainty of US trade, tax policies

Construction and truck equipment dealer Ferronordic’s total revenue declined in the second quarter, attributed to uncertainty around U.S. trade and tax policies. 

Sweden-based Ferronordic operates in the United States through Clearfield, Pa.-based Rudd Equipment after acquiring Rudd in November 2023 for $95 million. Through Rudd Equipment’s 13 facilities across nine states, Ferronordic distributes products from Volvo Construction Equipment, Hitachi Construction Machinery, Sandvik, Bergmann and Link-belt Cranes. 

Ferronordic’s sales and operating profit dropped amid tariff uncertainty, despite steady U.S. demand driven largely by infrastructure projects, alongside customer optimism and strong order backlogs, Chief Executive Henrik Carlborg said on the company’s Aug. 14 earnings call.  

“Naturally, this is not a result that we are happy about, but the good news is that we see we are now in a good position going forward,” he said.  

“We currently do not foresee that tariffs will affect our operations in the U.S. worse than anybody else in the market.” — Henrik Carlborg, CEO, Ferronordic

The passage of the One Big Beautiful Bill in July should ease tax incentive concerns and support future investment, Carlborg said. U.S. operations represented 64% of the company’s revenue for Q2, according to the company’s earnings presentation. 

Carlborg became CEO in the second quarter after former CEO Lars Corneliusson was named executive chairman. 

By the numbers 

During Q2, Ferronordic reported: 

• U.S. segment revenue of 695 million krona ($72.7 million), down 4.4% year over year; 

• U.S. equipment and truck sales of $34.9 million, down 9.3% YoY; 

• U.S. new unit sales of 59 units, down 15.7% YoY; 

• U.S. operating profit of $2.7 million, down 49% YoY; 

• Total equipment and truck sales of $56.1 million, down 8.1% YoY; 

• Total new unit sales of 220 units, up 20.9% YoY; 

• Total operating profit was a loss of $520,000, down 23%; and 

• Total revenue of $113.8 million, down 2.4% YoY. 

Market outlook 

Despite weaker global and U.S. results, Ferronordic remains optimistic about U.S. prospects, citing infrastructure demand, Carlborg said in the call.

“We expect activity in the infrastructure sector to remain good, as the need to maintain American roads and other infrastructure is significant,” he said. “We see clear opportunities to further develop and expand the US operations going forward.” 

Shares of Ferronordic [STO: FNM] were trading at $4.68 as of market close on Aug. 14, down 0.33% from market open. Ferronordic shares were trading at $4.70 as of market close today, up 0.22% from market open. The company has a market capitalization of $651.78 million. 

Editor’s note: All amounts have been converted to U.S. dollars.