Duroc (DURC) Q3 25/26 earnings summary

Executive summary

• Q3 saw a strategic transformation with divestments, acquisitions, and improved results; core business revenue rose 38% to 375.4 Mkr with an adjusted EBIT margin of 8.6%.

• Adjusted EBIT for Q3 increased 96% year-over-year to 37.2 Mkr, reflecting operational improvements and portfolio changes.

• Four profitable business units were acquired, and the loss-making IFG Asota unit was divested, enhancing the group’s return profile.

• A new segment structure was implemented, focusing on Trading, Industrial, and Non-Strategic segments.

Financial highlights

• Q3 net sales decreased 3% year-over-year to 765.0 Mkr, but organic growth was 14%.

• Adjusted EBIT was 37.2 Mkr (4.9% margin), up from 19.0 Mkr (2.4%) last year.

• Reported EBIT was -33.1 Mkr, impacted by a -33.0 Mkr loss on divestment and -32.8 Mkr asset impairment.

• Net income per share was -1.13 SEK (0.34 SEK last year).

• Cash flow from operations was -25.0 Mkr (57.1 Mkr last year).

• For the nine months, net sales fell 6% to 2,073.7 Mkr; adjusted EBIT was -0.3 Mkr.

Outlook and guidance

• The group is better positioned for stable cash flows and improved profitability after portfolio changes.

• DMT enters the next quarter with a 191 Mkr order backlog, up 16%, and expects significant growth from new agency agreements.

• Rail is expected to improve after resolving production issues; polymer businesses have stabilized.

• Market demand remains solid, though investment decisions are slower.