BALCO GROUP (BALCO) Q3 2025 earnings summary

Executive summary

• Order intake for Q3 was 222 MSEK, lower than last year, but the last two quarters combined show an 11% increase.

• Net sales for Q3 2025 were 277 MSEK, down from 331 MSEK year-over-year, with organic growth at -13% and currency effects at -3%.

• Profitability remains unsatisfactory due to project delays, especially in Sweden, Norway, and the UK, despite ongoing cost reduction measures.

• Structural and cost reduction measures, including staff reductions, are being implemented and are expected to be completed by year-end.

• No order cancellations occurred during the quarter, and the order backlog is considered fresh.

Financial highlights

• Adjusted EBITDA/EBITA for Q3 was 3 MSEK (17 MSEK last year), margin 1.1% (5.0%).

• Earnings per share and adjusted EPS for Q3 were -0.23 SEK.

• Operating cash flow for Q3 was 3 MSEK (-1 MSEK last year).

• Order backlog increased by 4% to 1,377 MSEK.

• Equity at quarter-end was 744 MSEK, with an equity-to-asset ratio of 44% (49% last year).

Outlook and guidance

• Cautious optimism for order intake in the remainder of the year, especially in renovation projects.

• Recovery in the new build segment in the Nordics is expected to take longer.

• Profitability improvement and cost-saving measures remain a focus.

• Increased order backlog is expected to translate into revenue growth starting in Q4, assuming projects proceed as planned.