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, despite a 29% drop in net sales due to a new transaction model and reclassification of third-party agreements; pro forma sales were flat.

• Nine acquisitions announced in 2025, expected to add SEK 700 million in annual net sales and strengthen EBITDA/EBITA margin.

• New financial targets: average annual EBITDA/EBITA growth of at least 15%, EBITDA/EBITA margin of at least 17%, net debt not exceeding 2.5x EBITDA, and a 30-50% dividend policy.

• Business model supported by 60-63% recurring revenue, providing resilience in uncertain markets.

• 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

• Adjusted EBITDA for Q3 2025 was SEK 290 million, up from SEK 200 million year-over-year, excluding early contract renewals; reported EBITA was SEK 149 million, down 26% year-over-year.

• Gross profit for Q3 increased by 1% to SEK 978 million, with gross margin rising to 74.6% from 52.2%.

• Cash flow from operations improved to SEK -64 million from SEK -133 million last year, mainly due to working capital changes, 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%; return on equity at 15.4%.

Outlook and guidance

• Expectation to double EBITDA/EBITA every five years, maintaining a 15% annual growth rate and a 17% margin.

• Cash flow impact from Autodesk contract payment changes expected to normalize by H2 2026.

• No major acquisitions expected in the next 1-2 quarters as recent large deals are integrated.

• No forecast issued due to geopolitical uncertainties, but long-term outlook remains positive.

• Positive EPS impact expected from Solidcad consolidation.