engcon (ENGCON) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw record-high order intake, up 27% to SEK 467 million, with organic growth of 31%, driven by strong performance in Europe and Asia-Oceania.

• Strategic partnerships were formed with Hitachi and Develon, enhancing market position and product integration.

• Founder Stig Engström was awarded Entrepreneur of the Year in Sweden 2025.

• Market studies confirm strengthened market leadership and ongoing market share gains since 2019.

• Major orders secured in Japan, with government incentives expected to further boost demand in 2026.

Financial highlights

• Q3 order intake: SEK 467 million (+27% YoY, +31% organic); net sales: SEK 415 million (+1% YoY, +4% organic).

• Gross margin at 42.6% (down from 46.1% YoY), EBIT margin at 16.9% (down from 22.0%), and EBIT at SEK 70 million (-23% YoY).

• Cash flow from operating activities was SEK 42 million, lower than last year due to reduced profit and increased inventory.

• Jan–Sep 2025: order intake SEK 1,441 million (+19%), net sales SEK 1,391 million (+11%), operating profit SEK 248 million (+7%).

• Q3 EPS: SEK 0.33 (0.40 YoY); Jan–Sep EPS: SEK 1.12 (1.07 YoY).

Outlook and guidance

• Stable demand expected for Q4, mainly driven by the Nordics and Europe, with pre-buying anticipated for Q1 and Q2 deliveries.

• Long-term outlook remains strong, with significant untapped market potential and continued growth expected through 2030.

• Market studies confirm ~93% of the excavator fleet in core markets remains unpenetrated by 2030.