Citira (CITRA) Q3 2025 earnings summary

Executive summary

• Revenue grew significantly year-over-year, driven by acquisitions and increased B2B activity, despite a cautious market environment, with early signs of demand recovery ahead of the Nordic winter season.

• Profitability improved on a like-for-like basis, with a 10% increase in LFL adjusted EBITDA for the nine-month period, mainly due to gross margin improvements and cost efficiencies.

• Däckia integration is progressing as planned, with SEK 23 million in annual synergies expected to materialize in coming quarters and further initiatives to reduce fixed costs in Sweden.

• Leadership team strengthened with new appointments in Sweden and procurement to drive profitable growth.

• High acquisition activity continued, with eleven acquisitions completed in the period and additional deals announced post-period, expanding the tire shop network to over 120 locations.

Financial highlights

• Q3 revenue increased by 2% to SEK 786.4 million (LFL), while reported Q3 revenue was SEK 782.6 million, up 113% year-over-year.

• Adjusted EBITDA for Q3 was SEK 21.3 million (LFL), down from SEK 26.9 million in Q3 2024, with a margin of 2.7% versus 3.5% last year.

• Year-to-date LFL revenue was SEK 2,252.5 million, with LFL adjusted EBITDA up 10% to SEK 62.9 million.

• Gross margin for Q3 was 40.1% (LFL), down from 41.8% in Q3 2024.

• Net debt at period end was SEK 1,592.5 million, corresponding to 5.96x LFL adjusted EBITDA (5.39x including synergies).

Outlook and guidance

• Early signs of gradual demand recovery ahead of the winter season, with new B2B contracts and tenders expected to positively impact future quarters.

• Further initiatives underway to strengthen profitability in Sweden and reduce the fixed cost base.

• M&A activity remains high, with ongoing geographic diversification and exploration of new market opportunities.

• Net debt is expected to decrease as seasonal effects reverse and synergies are realized.