Danish-based GPV, the second-largest European-headquartered EMS company, continued its positive development from Q1 into Q2. Sales growth is flat, while earnings are increasing, which is positive at a time of great uncertainty and cautious customers in general. GPV is continuing to optimise its global manufacturing footprint to be best possibly positioned.
GPV, owned by Nasdaq Copenhagen-listed Danish industrial conglomerate Schouw & Co., delivered sales of DKK 2.2 billion in Q2 2025, broadly in line with the level of the same period last
year, whereas earnings (EBITDA) increased by 8% from DKK 144 million last year to DKK 155
million this year:
“Following extraordinary years, not least due to the post-pandemic turmoil, we are now seeing a
market normalisation but also high volatility during the first half of 2025 due to the US trade tariff
focus. Sales, and especially earnings, is showing progress in a market where demand remains
subdued. We are satisfied with our performance but need to stay focused on and committed to
structural changes and competitiveness,” explains GPV CEO Bo Lybæk.
Overall, for the first half of 2025, GPV achieved sales of DKK 4.4 billion and earnings (EBITDA) of
DKK 298 million. Both figures are in line with expectations for the period. GPV also generated a
cash flow from operations at DKK 327 million, driven by operational performance and a focus on
inventory reduction.
Selected markets with growth potential
While sales across market segments in general remains largely flat, a few sectors are experiencing
growth. GPV experiences good demand across high-growth segments – notably in data centres
and the semiconductor industry, where the company serves a strong customer base.
The defence industry is growing, as European and US demand is increasing. Historically, GPV has
been a supplier to the defence sector and sees renewed potential in this area:
“For many years, GPV has been a trusted partner to the defence industry, with relevant industry
certifications already in place. As earlier communicated, we see a large potential in leveraging our
experience into the expected growth in the defence sector. We are committed to pursue our role as
a trusted partner in this highly regulated sector,” says Bo Lybæk.
Continuous optimisation of the global manufacturing footprint
GPV continues to focus on optimising its global manufacturing footprint – a long-term effort driven by three main factors: the ongoing realisation of synergies following the merger with Enics,
regionalisation with a focus on best-cost countries, and the consolidation of smaller units into larger sites.
In 2024, this work led to the closure of a factory in Malaysia and the divestment of a site in Austria.
So far this year, GPV has closed its last remaining Austrian site, streamlined operations at the
Swedish facility, started relocating its mechanics factory in Denmark to Thailand and consolidated
its electronics activities in Slovakia.
The new US tariffs are also a key factor – and one where GPV’s set-up offers a competitive edge
thanks to its factory in Mexico:
“The EMS industry operates on low margins, and double-digit tariffs on exports to the US simply
cannot be absorbed by GPV. That said, our Mexican operations provide a strong advantage as our
exports from Mexico to the US are covered by the USMCA Free Trade Agreement, and we invest
significant resources in evaluating full compliance. This is vital for our US-based customers – and,
therefore, for us,” says Bo Lybæk.
Narrowing the outlook for the year
Based on performance in the first half of 2025, GPV is now able to clarify its full-year expectations.
While overall market uncertainty remains high, GPV is confident that the trend towards
normalisation will continue:
“In Q2, we saw an uptick in demand, which of course is very encouraging. That said, it is difficult to assess whether the increase is sustainable – and even harder to predict when a more defined
growth phase might take hold. What matters is that we maintain our agility and continue to secure
our share of the market – particularly in growth areas,” Bo Lybæk continues.
GPV expects to generate full-year 2025 sales in the range of DKK 8.7-9.2 billion (previously DKK
8.7-9.3 billion) and EBITDA in the range of DKK 600-650 million (previously DKK 590-650 million).
EBITDA expectations include a one-off cost of DKK 30 million (previously DKK 40 million) related
to the restructuring of GPV’s operational footprint.
