CirChem (CIRCHE) Q3 2025 earnings summary

Executive summary

• Third quarter marked by low sales, technical production issues, and an uncertain market environment, with no large one-time orders as in the previous year.

• Developed a new process to handle complex waste fractions, now in final quality assurance phase with customers.

• Two closed-loop agreements initiated, including one with a global paint industry player, expected to provide recurring revenue and strong references.

• Expansion of supplier base underway due to temporary supply disruptions from a key waste provider.

• Strategic focus on strengthening cash flow and scaling up new processes as sales recover.

Financial highlights

• Q3 2025 net sales: 811 tkr (down 92% from 10,242 tkr in Q3 2024); EBIT: -3,440 tkr (down from 5,059 tkr); EBITDA: -3,160 tkr (down from 5,095 tkr).

• Jan–Sep 2025 net sales: 7,775 tkr (down 45% from 14,231 tkr); EBIT: -6,790 tkr (down from -571 tkr); EBITDA: -5,950 tkr (down from -461 tkr).

• Earnings per share Jan–Sep: -0.21 SEK (down from -0.05 SEK).

• Cash flow for the period: 6,736 tkr; cash and cash equivalents at period end: 13,584 tkr.

Outlook and guidance

• Short-term goal: achieve positive cash flow and break-even at the Vargön facility.

• Medium-term goal: handle 25,000 tons of solvents annually with a 15% EBITDA margin on 250 MSEK revenue at full optimization.

• Plans for geographic expansion in Northern Europe with three additional plants, targeting 1,000 MSEK in revenue.