Energy Save (ESGR) Q3 25/26 earnings summary

Executive summary

• Net revenue for Q3 2025 decreased by 9% year-over-year to SEK 46.3 million, but increased 200% sequentially from the previous quarter, reflecting a strong recovery after OEM stock balancing and delivery delays.

• ES sales grew 20% year-over-year to SEK 18.5 million, now representing 40% of total sales, supported by new product launches and distributor expansion.

• Cost discipline and a savings package led to a 27% reduction in other external costs and stabilized personnel costs.

• Strategic expansion included new distributor agreements in Europe and Chile, and the launch of new propane-based ES products certified for subsidies.

• Uncertainty reduced and positioned for further growth in Q4, with management expecting continued positive momentum.

Financial highlights

• Gross margin improved to 32.7% in Q3 2025 from 28.1% in Q3 2024, aided by a non-recurring F-gas quota sale of SEK 3.5 million.

• EBIT margin for Q3 2025 was -7.2%, an improvement from -9.5% in Q3 2024.

• Operating cash flow for Q3 2025 was SEK 725,000, up from -SEK 4.6 million year-over-year.

• Inventory levels reduced by SEK 9.4 million, freeing up cash and enabling stocking of new propane units.

• Total assets as of 30 September 2025 were SEK 225.8 million, with equity of SEK 156.7 million and a debt-to-equity ratio of 69.4%.

Outlook and guidance

• Management expects continued OEM business recovery and ES sales growth in Q4 2025, supported by new products, distributors, and positive market response.

• Cost base expected to remain stable, with savings package effects continuing into 2026.

• Market has entered peak season with growth in key European markets.