Ambea (AMBEA) Q3 2025 earnings summary

Executive summary

• Net sales in Q3 2025 increased 16% year-over-year to SEK 4,114 million, driven by 13% acquired and 4% organic growth, with strong M&A activity and expansion into Finland's child and family care segment.

• Adjusted EBITA rose 19% to SEK 570 million, margin 13.9%, with high occupancy and margin improvements in Validia and Altiden.

• Profit for the period was SEK 322 million, and EPS before dilution reached SEK 3.83, with a CAGR of 33.9% from Q3 2023 to Q3 2025.

• Climate targets validated by the Science-Based Targets Initiative, aligning with the Paris Agreement.

• Share buyback program for up to 2 million shares launched, with SEK 219 million spent in the quarter.

Financial highlights

• Q3 net sales: SEK 4,114 million (up 16% year-over-year); rolling 12-month net sales reached SEK 15.5 billion.

• Adjusted EBITA: SEK 570 million (up 19%), margin 13.9%; rolling 12-month adjusted EBITDA above SEK 1.5 billion, margin 9.9%.

• Operating cash flow up 30% to SEK 686 million, with cash conversion over 91% (Q3 cash conversion 73.7%).

• Free cash flow post-tax was SEK 696 million, with one-offs including a SEK 72 million legal settlement and SEK 56 million in acquisition costs.

• EPS grew 22% in the quarter, with strong underlying development adjusted for IFRS 16 and acquisition items.

Outlook and guidance

• Positive growth outlook through continued acquisitions and organic expansion, especially in Sweden, Denmark, and Finland.

• Validia expected to contribute positively from 2026; further organic and bolt-on acquisition growth anticipated in Finland.

• Margin stabilization and improvement expected in Nytida; Vardaga margins may be temporarily impacted by new openings.

• Altiden to accelerate growth via new capacity and potential bolt-on acquisitions in Denmark.

• Share buyback program and new SEK 5 billion loan agreement support capital allocation and future growth.