Elanders (ELAN) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw organic sales decline by 4%, mainly due to lower Air and Sea forwarding prices, but underlying demand improved, especially in North America, while Asia remained stable and Europe lagged.

• Adjusted EBITA/EBITDA margin improved to 7.3% from 6.6% last year, driven by cost reductions and restructuring.

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

• Major restructuring in LGI, the largest subsidiary, resulted in SEK 80 million in non-recurring costs and is expected to yield significant annual savings.

• Operating profit was impacted by one-off items totaling SEK 80 million in Q3 and SEK 185 million for the nine months, mainly for structural measures.

Financial highlights

• Free cash flow for Q3 2025 was SEK 163 million, up from SEK 88 million in Q3 2024; free cash flow per share increased to SEK 4.60 from SEK 2.49.

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

• Net debt reduced by SEK 218 million in the first nine months (excluding IFRS 16), and by SEK 907 million including IFRS 16 and currency effects.

• Dividend of SEK 147 million paid in Q2, increasing net debt.

• Credit agreement extended, securing financing until Q3 2028.

Outlook and guidance

• Additional restructuring and cost measures in Q3 are expected to lower the cost base for next year while maintaining growth capacity.

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

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

• No formal forecast for 2025 is provided, but management expects annual cost savings of SEK 232 million from structural measures.

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