Boreo (BOREO) Q3 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of organic sales growth, with Q3 2025 net sales reaching EUR 32.8 million, up 16% year-over-year, supported by 10% organic growth and recent acquisitions.

• Operational EBIT for Q3 2025 was EUR 1.7 million, down 6% year-over-year, mainly due to higher fixed costs and absence of prior year provision releases, but a stable 5% margin was maintained.

• Strong cash flow with Q3 cash conversion at 151%, supported by a reduction in working capital of EUR 1.4–1.5 million.

• Order books increased both year-over-year and sequentially, especially in industrial businesses, while construction remains slow.

• New CEO Tuomas Kahri appointed, effective by May 2026, expected to lead the next growth phase.

Financial highlights

• Q3 2025 net sales: EUR 32.8 million (+16% y/y); Q1–Q3 2025: EUR 107.0 million (+13% y/y).

• Q3 operational EBIT: EUR 1.7 million (-6% y/y); Q1–Q3: EUR 5.2 million (+10% y/y).

• Gross margin stable at 31–32% on a rolling 12-month basis.

• ROCE improved to 8.2% (from 7.9% in Q4 2024); ROTWC at 25.6%.

• Net debt/operational EBITDA at 2.4x (target 2–3x).

Outlook and guidance

• Order books show positive momentum, particularly in industrial segments, while construction sector expected to remain weak through winter.

• Focus remains on developing existing businesses, pursuing new acquisitions, and ongoing ERP and growth initiatives.

• Strategic targets include minimum 15% annual average operational EBIT growth and ROCE, with net debt/operational EBITDA targeted at 2–3x.

• Expectation to further reduce working capital in H2 while pursuing growth opportunities.

• Stable and decent short-term performance expected.