Ependion (EPEN) Q3 2025 earnings summary

Executive summary

• Q3 saw improved earnings and margins, with order intake up 11% to 505 MSEK and sales up 10% to 544 MSEK, amid ongoing market uncertainty and cautious customer behavior.

• EBIT margin improved to 11.6% (up from 10.3%), and net income rose to 40.4 MSEK from 31.1 MSEK last year.

• Strategic acquisitions, including Welotec and a minority stake in RazorSecure (GBP 2.7 million), enhanced positions in energy and rail cybersecurity, with an option for full ownership after 2027.

• Group-wide initiatives were launched to strengthen positions in the defense sector and through new product launches such as Beijer Electronics’ X3 HMI series.

Financial highlights

• Orders: 505 MSEK (+11% year-over-year); sales: 544 MSEK (+10% year-over-year); EBIT: 63 MSEK (11.6% margin, up from 10.3%).

• Net income: 40.4 MSEK (up from 31.1 MSEK); EPS: 1.26 SEK (up from 1.08 SEK).

• Free cash flow: 29.9 MSEK, lower than last year due to less working capital reduction.

• FX headwinds impacted EBIT by 12 MSEK.

Outlook and guidance

• Medium- and long-term prospects remain positive, with confidence in achieving growth and profitability targets, though near-term outlook is uncertain due to geopolitical and economic factors.

• Focus remains on cost discipline, value creation, and maintaining dividend payments.