Alligo (ALLIGO) Q3 2025 earnings summary

Executive summary

• Revenue increased by 2.1% in Q3 2025, driven by acquisitions despite negative organic growth of -2.7% due to tough comparables and adverse FX effects.

• Adjusted EBITA/EBITDA rose 15% to SEK 158 million, with margin improving to 7.2% from 6.4% last year.

• Profitability improved across all countries, supported by cost savings, margin improvements, and a focus on own brands and SME customers.

• Operating cash flow increased to SEK 148 million from SEK 116 million, reflecting higher EBITDA and tax repayments.

• CEO announced planned departure during 2026, signaling a strong strategic position for succession.

Financial highlights

• Q3 revenue: SEK 2,189 million (+2.1% YoY); YTD revenue: SEK 6,891 million (+2.2% YoY).

• Adjusted EBITA Q3: SEK 158 million (+15.3% YoY); YTD: SEK 376 million (-2.8% YoY).

• Gross margin Q3: 41.4% (up from 40.5%); YTD: 40.8%.

• Operating cash flow Q3: SEK 148 million (up from SEK 116 million).

• Net debt/EBITDA at 3.1x, temporarily above target.

Outlook and guidance

• Market conditions remain cautious but stable, with some positive signals in quotations and customer engagement.

• Focus remains on sales, marketing, and acquisitions, with expectations of leverage and net debt returning to target levels by Q4.

• Cost efficiency and margin focus expected to continue supporting profitability.

• Organic growth expected to turn positive as market recovers.

• Construction market in Sweden revised upwards for 2026, but slightly down for late 2025; longer-term outlook is positive.