Elanders (ELAN) Q3 2025 earnings summary

Executive summary

• Underlying demand improved in Q3 2025, with negative organic growth of 4%, or 2% when adjusted for Air and Sea price declines; North America returned to organic growth, Asia remained stable, and Europe saw negative growth.

• Adjusted EBITDA/EBITA margin rose to 7.3% from 6.6% year-over-year, reflecting cost reduction actions and restructuring.

• Net sales for Q3 2025 were SEK 2,872 million, down from SEK 3,598 million in Q3 2024.

• Strong cash conversion and reduced net debt, aided by lower working capital and a stronger SEK.

• Further restructuring in LGI, with SEK 80 million in non-recurring costs, and ongoing cost-saving measures.

Financial highlights

• Adjusted EBITDA/EBITA margin improved to 7.3% (Q3 last year: 6.6%).

• Cash conversion reached 73% in Q3 2025, up from 40% last year.

• Net debt reduced by SEK 280 million in nine months, and by SEK 907 million including IFRS 16.

• Free cash flow per share for Q3 2025 increased to SEK 4.60 from SEK 2.49.

• Net sales for Q3 2025 were SEK 2,872 million, down 20% year-over-year.

Outlook and guidance

• Expect to enter next year with a much lower cost base and continued growth capacity, supported by additional cost measures.

• Ongoing rollout of CloudX warehouse platform and AI solutions to further reduce costs and boost efficiency.

• Trade barriers and regionalization seen as long-term opportunities for logistics growth.

• Management expects structural measures to yield annual cost savings of MSEK 232, with MSEK 99 realized in 2025.

• Signs of stabilization and recovery in selected segments and geographies, especially North America and Asia.