Addnode Group (ANOD) Q3 2025 earnings summary

Executive summary

• Stable market conditions in core regions, with high acquisition activity and improved efficiency in Q3 2025; nine acquisitions announced in 2025 are expected to add SEK 700 million in annual net sales and strengthen EBITA/EBITDA margin.

• New financial targets set: average annual EBITA/EBITDA growth of at least 15%, EBITA/EBITDA margin of at least 17%, and net debt not to exceed 2.5x EBITDA.

• Early contract renewals and a new transaction model impacted quarterly EBITA/EBITDA, but the net effect over the year is neutral.

• Net profit for Q3 fell to SEK 54 million from SEK 97 million, and EPS declined to SEK 0.40 from SEK 0.73.

Financial highlights

• Q3 2025 net sales (pro forma): SEK 1,311 million, flat year-over-year; gross profit: SEK 978 million, up 1%; gross margin rose to 74.6% from 52.2%.

• Q3 2025 EBITA: SEK 149 million, down 26% year-over-year; EBITA margin: 11.4% (vs. 15.2%); adjusted EBITA (excluding early contract renewals) would have been SEK 219 million, up from SEK 200 million.

• Cash flow from operating activities improved to SEK -64 million from SEK -133 million, with normalization expected in H2 2026.

• Net debt increased to SEK 1,918 million, mainly due to new loans for acquisitions; equity ratio at 31%.

• Return on capital employed annualized at 16.6%.

Outlook and guidance

• Expectation to double EBITA/EBITDA every five years, maintaining a 15% annual growth rate; no forecast issued due to geopolitical uncertainties, but long-term outlook remains positive.

• Cash flow drag from Autodesk contract payment terms expected to normalize by H2 2026.

• No major slowdown anticipated in acquisition activity, but focus will be on integrating recent large deals.

• Market conditions remain stable overall, with some regional and sectoral softness, especially in German and Nordic manufacturing.