Fagerhult (FAG) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw stable order intake at SEK 1,952 million, with no large project contributions and early signs of market recovery; net sales reached SEK 2,027 million, up 5.6% year-over-year.

• Integration of Trato TLV/Chartered TLV and Capelon is progressing as planned, supporting strategic ambitions and strengthening the Group's position in professional and smart lighting.

• Cost discipline remains a focus, with acquisition-related costs impacting Q3 results.

• Management is not satisfied with operating results and is taking steps to improve performance.

• Sustainability and innovation initiatives advanced, including the launch of the Wrapped luminaire, awarded Best Lighting Innovation 2025 in Sweden.

Financial highlights

• Q3 order intake was SEK 1,952 million (flat organically); net sales increased 5.6% to SEK 2,027 million; operating profit before IAC was SEK 147.1 million (down 18.9%), margin 7.3%; EPS before IAC SEK 0.47.

• Year-to-date (Jan–Sep) net sales were SEK 5,815 million (down 7.2% year-over-year); operating profit before IAC SEK 412 million (margin 7.1%); EPS before IAC SEK 1.23.

• Q3 operating cash flow was SEK 208 million; YTD cash flow SEK 395 million (down from SEK 608 million year-over-year).

• Gross margin before IAC for Q3 was 39% (down from 40.6%); selling and admin expenses rose 7.7% to SEK 659 million, including SEK 19 million in acquisition costs.

• Net profit for Q3 was SEK 85.6 million, with EPS of SEK 0.49 (up from SEK 0.31 last year).

Outlook and guidance

• Early signs of recovery and stabilization in order intake, with less volatility across business areas and a growing order backlog of SEK 1,865 million.

• Management expects continued progress from cost reduction programs, cross-selling, and operational efficiency.

• Structural trends, regulatory changes, and ongoing integration of acquisitions position the group well for future growth.