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Boreo (BOREO) investor relations material

Boreo Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary29 Oct, 2025

Executive summary

  • Achieved fourth consecutive quarter of organic sales growth, with Q3 2025 net sales reaching EUR 32.8 million, up 16% year-over-year, supported by 10% organic growth and recent acquisitions.

  • Operational EBIT for Q3 2025 was EUR 1.7 million, down 6% year-over-year, mainly due to higher fixed costs and absence of prior year provision releases, but a stable 5% margin was maintained.

  • Strong cash flow with Q3 cash conversion at 151%, supported by a reduction in working capital of EUR 1.4–1.5 million.

  • Order books increased both year-over-year and sequentially, especially in industrial businesses, while construction remains slow.

  • New CEO Tuomas Kahri appointed, effective by May 2026, expected to lead the next growth phase.

Financial highlights

  • Q3 2025 net sales: EUR 32.8 million (+16% y/y); Q1–Q3 2025: EUR 107.0 million (+13% y/y).

  • Q3 operational EBIT: EUR 1.7 million (-6% y/y); Q1–Q3: EUR 5.2 million (+10% y/y).

  • Gross margin stable at 31–32% on a rolling 12-month basis.

  • ROCE improved to 8.2% (from 7.9% in Q4 2024); ROTWC at 25.6%.

  • Net debt/operational EBITDA at 2.4x (target 2–3x).

Outlook and guidance

  • Order books show positive momentum, particularly in industrial segments, while construction sector expected to remain weak through winter.

  • Focus remains on developing existing businesses, pursuing new acquisitions, and ongoing ERP and growth initiatives.

  • Strategic targets include minimum 15% annual average operational EBIT growth and ROCE, with net debt/operational EBITDA targeted at 2–3x.

  • Expectation to further reduce working capital in H2 while pursuing growth opportunities.

  • Stable and decent short-term performance expected.

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Frequently asked questions

Boreo Oyj is a Finland-based company focused on owning, acquiring, and developing small and medium-sized businesses, primarily in Northern Europe. Its operations are organized into two main areas: Electronics and Technical Trade. Boreo provides services such as the distribution and assembly of electronic components, alongside technical sales, logistics, and storage services. The company also engages in the trading of industrial machinery, power products, and solutions for construction and welding, with customers across industries like construction, concrete, and forestry. Boreo markets its products under various brands, including Yleiselektroniikka and Machinery. The company is headquartered in Vantaa, Finland, and its shares are listed on the Nasdaq Helsinki.

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