Teqnion (TEQ) investor relations material

Executive summary

• Q3 2025 saw improved EBITDA, EBITA, and free cash flow, with FCF at 59.8 MSEK (17.7) and EBITA at 67.8 MSEK (41.5), reflecting a 37% year-over-year increase.

• Net sales rose 19% to 455.6 MSEK (381.8), with 1% organic growth; EBITA margin increased to 14.9% (10.9%).

• Two new U.K. subsidiaries, Birkett Bogmats and HT Servo, were acquired, while Reward Catering entered provisional liquidation, resulting in a SEK 73 million goodwill impairment.

• Nine acquisitions in 2025 contributed ~191 MSEK in net sales and 50 MSEK in EBT with an average EBT margin of 25%.

• Management remains focused on further improvement and scaling, targeting quality M&A and operational enhancements amid ongoing economic headwinds.

Financial highlights

• EBITDA, EBITA, and free cash flow improved, with FCF up 238% year-over-year for Q3 and 160% YTD, attributed to M&A and operational improvements.

• Goodwill impairment of SEK 73 million was recognized due to issues with Reward Catering and Hem1, impacting EBT and resulting in a negative EPS of -1.31 SEK (1.59); excluding impairment, EPS was 2.94.

• Net debt/EBITDA increased to 2.0 from 1.2 year-over-year, reflecting acquisition activity; target remains below 2.5.

• Margins of newly acquired companies are above group average, contributing positively to overall results.

• Net sales for the rolling 12 months reached 1,740.2 MSEK.

Outlook and guidance

• Management expresses confidence in continued improvement and scaling, focusing on acquiring higher-quality, larger companies and operational improvements.

• New governance structure with Nordics and UK divisions aims to enhance scalability and local market insight.

• No significant seasonality is expected due to diversification across industries and geographies.

• Ongoing efforts to improve underperforming companies and further reduce losses.