Addtech (ADDT) Q3 24/25 earnings summary

Executive summary

• Net sales increased 11% in Q3 to SEK 5,481 million, with 3% organic and 8% acquired growth; EBITA up 17% to SEK 790 million, margin at 14.4%. All business areas contributed, especially Energy.

• For the nine months, net sales rose 7% to SEK 16,046 million, EBITA up 14% to SEK 2,385 million, and profit after tax up 13% to SEK 1,397 million.

• Eleven acquisitions completed in the fiscal year, with eight outside the Nordics, adding SEK 1,450 million in sales and 300 employees; strong cash flow supports ongoing M&A strategy.

• The backlog remains well filled, and order intake was solid, supporting a positive outlook despite market challenges.

• Margins improved to 14.4% from 13.6% in the same quarter last year, and cash flow remained robust.

Financial highlights

• Q3 EBITA margin improved to 14.4% (from 13.6%); rolling 12-month EBITA margin at 14.9%.

• Earnings per share before dilution for nine months was SEK 5.05, up from SEK 4.45; rolling 12-month EPS at SEK 6.65.

• Cash flow from operating activities for nine months at SEK 1,848 million; cash flow per share at SEK 9.35.

• Return on working capital (P/WC) at 74% in Q3, up from 68% year-over-year.

• Equity ratio at 38%, net debt/equity at 0.8, financial debt/EBITDA at 1.6, interest coverage at 8.9x.

Outlook and guidance

• Short-term outlook remains positive due to a strong backlog and solid order intake, despite macroeconomic uncertainty and investment hesitancy in some segments.

• Optimism for a broader recovery in demand in the second half of fiscal 2025, especially in Industrial Solutions and Process Technology.

• Diversified business model and strong acquisition pipeline position the group for continued value creation and growth.