Freemelt (FREEM) Q3 2025 earnings summary

Executive summary

• Q3 order intake reached SEK 19 million, resulting in a record order book of SEK 23.4 million and year-to-date order growth of 228% and net sales growth of 128%.

• Net sales for Q3 were SEK 17 million, up 96% year-over-year, with the installed base growing 48% to 40 machines over the past year.

• Strategic expansion into China, including the first machine order from Jiuli, and outsourcing production to Scanfil to enhance scalability and supply chain agility.

• The company is well-positioned in growing verticals: defense, fusion energy, and medtech, all benefiting from favorable market and geopolitical trends.

• Organizational change in North America with the departure of the Regional President and new incentive schemes for key employees and the Chairman of the Board.

Financial highlights

• Q3 order intake was SEK 18.5–19 million, with an all-time high order book of SEK 23–23.4 million.

• Net sales for Q3: SEK 16,988k, up 96% YoY; YTD net sales: SEK 38,989k, up 228% from last year.

• 81% of sales came from machines, 12% from aftermarket, and the remainder from projects.

• Operating cash flow was nearly break-even, with cash at bank at period end of SEK 45.1 million.

• Equity ratio at quarter end was 91%.

Outlook and guidance

• The record order backlog is expected to convert into future sales and cash flows in coming quarters.

• Margins are anticipated to improve as production with Scanfil becomes more efficient.

• Focus on expanding in fast-growing markets, especially China and Germany, and leveraging strategic partnerships.

• Continued investment in application centers and emphasis on defense, energy, and MedTech sectors.

• Preparing for industrialization and scale-up, with all production outsourced to Scanfil as of October 1.