Alcadon Group (ALCA) investor relations material

Executive summary

• Sixth consecutive quarter of adjusted EBITA improvement; all subsidiaries were profitable, P/WC reached a record 38.2%, and net debt ratio was 2.3x.

• Strong demand and high-volume projects supported growth, especially in data centres; opportunities also span other current market segments.

Financial highlights

• Q3 net sales rose to SEK 383M from SEK 327M; adjusted EBITA increased to SEK 27M from SEK 23M, with margin at 7.1% versus 7.0%.

• Q3 gross profit was SEK 99M versus SEK 88M; gross margin eased to 26.0% from 26.8% as larger projects pressured margins.

• Q3 operating cash flow was negative SEK 1.8M versus positive SEK 15.5M; working-capital changes used SEK 42M.

• For 9M, net sales rose 1.8% to SEK 1,084M and adjusted EBITA increased 8.8% to SEK 77.8M; operating cash flow was SEK 50M.

• Q3 profit was SEK 16.6M versus SEK 9.2M; EPS was SEK 0.68 versus SEK 0.37.

Outlook and guidance

• Long-term targets: P/WC of 50%, average annual profit growth of at least 10%, EBITA margin of 10%, and net debt ratio below 3x.

• Priorities include customer support amid constrained availability, working-capital discipline, moving subsidiaries out of the Red Zone, and stepwise financial improvement.

• Acquisition ambition is 1–2 businesses annually, including add-ons, new geographies, expanded offerings, and adjacent digitalisation niches.

• Inventory turnover target is 5x; Red Basket inventory should remain below 10% of total inventory.