Fagerhult (FAG) Q3 2025 earnings summary

Executive summary

• Q3 2025 showed stable order intake with early signs of market recovery, supported by broad-based daily activity rather than large projects.

• Integration of Chartered/Trato TLV and Capelon is progressing as planned, supporting strategic ambitions and market position in Europe.

• Cost discipline remains a focus, with acquisition-related costs impacting the quarter.

• The business is resilient, but management is not satisfied with operating results and is taking steps to improve.

• Sustainability and innovation initiatives advanced, including the launch of the Wrapped luminaire and progress toward net zero by 2045.

Financial highlights

• Q3 2025 order intake was SEK 1,952 million, flat organically; net sales increased 5.6% to SEK 2,027 million.

• Gross margin before IAC decreased slightly to 39%; selling and admin expenses rose 7.7% to SEK 659 million, including SEK 19 million in acquisition costs.

• Operating profit before IAC was SEK 147.1 million, down 18.9% year-over-year; operating margin before IAC was 7.3%.

• Earnings per share before IAC were SEK 0.47 for Q3.

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

• Operating cash flow for Q3 was SEK 208 million; YTD cash flow SEK 395 million, down due to lower profitability.

Outlook and guidance

• Early signs of recovery and stabilization in order intake, with less volatility across business areas.

• Management expects continued gradual improvement and is focused on internal collaboration to drive revenue.

• Cost reduction program is on track, aiming for SEK 180 million in OpEx savings by early 2026.

• Favorable structural trends and ongoing integration of acquisitions position the group well for future growth.

• Order backlog increased to SEK 1,865 million, providing a stable foundation for future deliveries.