Alfa Laval (ALFA) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales reached SEK 17.2 billion, up 6% year-over-year, with organic growth of 8.2% and record adjusted EBITA margin of 18.4%.

• Order intake declined 10–13% organically, with book-to-bill ratio at 0.96 and order book of SEK 50.9 billion.

• Adjusted EBITA increased 14% to SEK 3.2 billion, and EPS rose 16% to SEK 5.53.

• Service business accounted for 31–32% of orders, showing strong growth and operational improvements.

• Major acquisition of Fives Cryogenics completed, expanding the Energy Division.

Financial highlights

• Gross profit margin improved to 36.8–37.8%, and operating income rose 12.6% to SEK 3 billion.

• Earnings per share were SEK 5.53 for Q3 and SEK 15.22 for the first nine months.

• Cash flow from operations was SEK 2.2 billion in Q3, lower due to increased working capital and acquisition spending.

• Net debt to EBITDA increased to 1.11 from 0.61, reflecting acquisition financing.

• Capex was 3.2% of net sales in Q3.

Outlook and guidance

• Q4 demand expected to remain stable, with higher energy, lower marine, and stable food and water demand.

• Financial targets raised: annual sales growth target to 7% and EBITA margin to 17% over the cycle.

• CapEx guidance for Q4 is SEK 700 million; 2026 guidance is SEK 2.5–3 billion.

• Tax rate expected to remain between 24–26%.

• Financial targets reflect current performance and investment strategy.