Cynca Nordic (CYNCA) Q3 2025 earnings summary

Executive summary

• Sequential profitability improved, with an adjusted EBITDA/EBITA margin of 11% in Q3 2025 and stable demand, especially toward the end of the quarter.

• Net sales for Q3 2025 were SEK 889 million, down 13% year-over-year, mainly due to divestments and negative organic growth of 2%.

• Cash flow was impacted by increased CapEx, working capital buildup, and investments.

• Significant acquisitions, including Dynamic Fluid Solutions and Nortech, strengthened the Flow Technology segment.

• Profitability was affected by non-recurring adjustment items and extraordinary financial costs.

Financial highlights

• Q3 2025 net sales: SEK 889 million, a 13% decrease year-over-year, mainly due to divestments.

• Adjusted EBITA/EBITDA margin: 11.0% for Q3 2025, improved sequentially but lower than Q3 2024.

• LTM free cash flow was SEK 70 million, down from SEK 120 million in the previous quarter, mainly due to working capital buildup and higher CapEx.

• Financial net debt/EBITDA: 2.8x at period end; including earn-out debt, leverage is 2.9x.

• Investments in fixed assets increased to SEK 22 million in Q3.

Outlook and guidance

• Flow Technology segment expected to benefit from UK infrastructure investments (AMP8) and recent acquisitions, with stable demand and strong profitability anticipated.

• Solutions and Niche Products segments face high competition and price pressure, but gradual improvement is expected as construction investments recover.

• Working capital release could occur in Q4 or Q1, depending on timing.

• Capital allocation will remain disciplined, focusing on profitability and cash flow growth.

• Some positive signs observed toward the end of the quarter, but it is too early to confirm a new positive trend.