Brødrene A & O Johansen (AOJ) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 10.5% year-over-year, with 8.8% organic and 1.7% acquisitive growth; B2C segment grew 14% organically and surpassed DKK 1 billion in annual sales.

• Margins improved year-over-year, with B2C EBITDA margin at 11.5% and gross margin up 1.5 percentage points, adjusted for last year's property sale gain.

• B2C now represents over 17% of group sales, with B2B and B2C segments both showing strong performance.

• All employees completed ESG training, supporting sustainability and green transition priorities.

• Project activities in Denmark and Sweden continue to face significant margin pressure due to intense competition.

Financial highlights

• Q3 2025 revenue: DKK 1,465.2m (Q3 2024: DKK 1,326.1m); organic growth was 8.8%.

• EBITDA for Q3 was DKK 98.2m; underlying EBITDA up 30% year-over-year after adjusting for one-off items.

• Gross margin improved from 21.8% to 23.3% year-over-year, adjusted for property gain.

• Net interest bank debt at DKK 1.2 billion, down from DKK 1.3 billion; net debt/EBITDA at 3.0, expected to reach 2–2.5x by end of 2025.

• Cash flow from operations DKK 219m higher than prior year, driven by payment timing.

Outlook and guidance

• 2025 revenue guidance narrowed to DKK 6,000–6,100m, with expected growth of 10.5%–12.4%.

• EBITDA guidance for 2025 set at DKK 420–440m; EBT expected at DKK 245–265m, both with the upper end lowered due to project margin pressure.

• Q4 organic growth expected to be more modest due to a strong prior year and one less sales day.

• Gross margin in Q4 expected to be about 1 percentage point higher year-over-year.