I-Tech (ITECH) Q3 2025 earnings summary

Executive summary

• Achieved 10% organic sales growth in Q3, marking the third strongest quarter ever, with double-digit volume growth despite currency headwinds and customer-specific challenges.

• Profitability improved with higher gross and EBITDA margins, and Asia, particularly Korea, Japan, and China, drove the majority of sales.

• Hosted the International Antifouling Conference, reinforcing leadership in sustainable marine coatings and fostering industry collaboration.

• Regulatory uncertainty persists regarding EU re-registration of Selektope, with significant advocacy costs and clarity expected before year-end.

Financial highlights

• Net sales for Q3 were SEK 41.0 million, up 0.5% year-over-year; organic growth was 10%.

• Gross margin increased to 57% from 52% year-over-year; EBITDA margin was 32%, and EBIT grew 18%.

• Operating cash flow reached SEK 23.2 million, more than doubling year-over-year, with a cash balance of SEK 135.7 million, up 44%.

• Significant external costs of $2–2.5 million this quarter related to EU regulatory processes, above the usual $1.5 million run rate.

• Earnings per share for Q3 were SEK 0.8 (up from SEK 0.7).

Outlook and guidance

• Market sentiment has improved, with stronger charter rates, increased ship repair activity, and less turbulence post-summer.

• Currency headwinds, market volatility, and strategic uncertainties persist, but new product launches and partnerships are expected to drive future growth.

• Ongoing regulatory advocacy and operational improvements are planned, with no specific guidance on matching previous record quarters due to customer-specific volume reductions.