Garo (GARO) Q3 2025 earnings summary

Executive summary

• Q3 net sales were MSEK 251.3, down 7% year-over-year, with steady improvement in operational rhythm and leadership integration.

• Electrification remains the financial backbone, showing stable performance and growth in installation products, especially in the UK and Ireland.

• E-mobility continues to face challenges due to price-driven competition in home charging, but steps are being taken to simplify the portfolio and focus on professional/public charging.

• Leadership, sales integration, and operational control have improved, positioning the group for the next market upturn.

• CEO Jonas Klarén will leave at the end of January 2026; recruitment for a new CEO has started.

Financial highlights

• Net sales for Q3 were MSEK 251.3, down 7% year-over-year; adjusted EBIT was MSEK 2.5 (up from 0.4), with a margin of 1.0%.

• EBIT for Q3 was MSEK -1.6 due to MSEK 4 in termination costs; net income was MSEK -4.5 (vs. -41.9 last year).

• Cash flow from operating activities after working capital changes was MSEK 11.0, up from -20.1 last year.

• Net debt reduced to MSEK 269.9 from 318.9; equity/assets ratio improved to 51.5% from 47.3%.

• Earnings per share for Q3 were SEK -0.09 (vs. -0.84 last year).

Outlook and guidance

• Electrification expected to remain stable with solid margins; international markets performing well despite weak Swedish residential demand.

• E-mobility segment stabilizing through focus and cost control, with ongoing efforts to lower complexity and reduce inventory.

• The roadmap targets stabilization and simplification in 2025, baseline building in 2026, and scaling from 2027 onward.

• Market for new construction in the Nordics remains weak; a turnaround is not expected until 2026.

• Q4 is anticipated to be strong due to seasonality and a solid order intake in project business.