Alcadon Group (ALCA) Q3 2025 earnings summary

Executive summary

• Q3 2025 performance aligned with expectations, with net sales down 11% year-over-year to SEK 346 million and a 9.5% decrease in constant currency amid ongoing restructuring and challenging market conditions.

• Data centre segment showed growth, now representing about 30% of sales, while broadband remained weak, impacting sales but improving product mix.

• Adjusted EBITA for Q3 rose 14% to SEK 23 million, and EBITA increased 35% to SEK 24 million.

• Internal improvements focused on leadership, decentralization, and financial targets emphasizing profit and predictability, with transformation efforts on cost reduction and inventory optimization.

• Strategic focus on cash flow, inventory reduction, and broadening market offerings.

Financial highlights

• Net sales declined 11% year-over-year in Q3 2025 to SEK 346 million.

• Gross margin improved to 26.8% in Q3 from 24.4% a year earlier, aided by reduction in low-margin sales.

• Adjusted EBITA reached SEK 23.1 million, up from SEK 21.8 million in Q1 and SEK 22.2 million in Q2 2025.

• Earnings per share rose to SEK 0.37 from SEK 0.22 year-over-year.

• Operating cash flow per share was SEK 0.63, up from 0.59 SEK.

Outlook and guidance

• Continued focus on reducing working capital and inventory, even at the expense of margins, to generate cash flow.

• Targeting inventory turnover of at least 5 times per year and Red Basket inventory below 10%.

• Aiming to balance segment exposure and stimulate growth in high-performing units through organic and acquisition-driven expansion.

• The company targets a profitability level (P/WC) of 50%, average annual profit growth of at least 10%, and an EBITA margin of 10%.

• Management expects further effects from restructuring and cost reductions to materialize from year-end, especially in Norway.