Alfa Laval (ALFA) Q3 2025 earnings summary

Executive summary

• Net sales reached SEK 17.2–17.244 billion in Q3 2025, up 6–6.4% year-over-year, with organic growth of 8–8.2% and record adjusted EBITDA/EBITA of SEK 3.2 billion at an 18.4% margin.

• Order intake declined 10–13% organically to SEK 16.6–16.555 billion, with a book-to-bill ratio of 0.96 and a robust backlog of SEK 50.9–51 billion.

• Earnings per share rose to SEK 5.53, up 16% year-over-year.

• All divisions contributed to margin improvement, with service now accounting for 31–32% of orders.

• Major acquisition of Fives Cryogenics (SEK 8.8–9.2 billion) completed, expanding the Energy Division.

Financial highlights

• Gross profit margin improved to 36.8–37.8%, and operating income rose to SEK 3–3.011 billion.

• Cash flow from operations was SEK 2.2 billion, down 44% year-over-year due to higher working capital and acquisition spending.

• Net debt to EBITDA increased to 1.11–1.3x, reflecting acquisition financing.

• Book-to-bill ratio at 0.96; order book covers 8.9 months of sales.

• Capex was 3.2% of net sales in Q3.

Outlook and guidance

• Sales growth target raised to 7% and EBITDA/EBITA margin target to 17% over the cycle, with ROCE target at 20%.

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

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

• Tax rate guided at 24–26%.