Indutrade (INDT) Q3 2025 earnings summary

Executive summary

• Organic order intake increased 3% year-over-year, the best level since Q4 2023, with four out of five business areas and over half of companies growing organically.

• Net sales declined 2% (organic -1%) to SEK 7,846 million, mainly due to currency headwinds, divestments, and tough comparables, especially in Life Science.

• Strong demand in medical technology, pharmaceuticals, and improvements in infrastructure, construction, and engineering segments.

• Ten acquisitions completed year-to-date, adding SEK 1.1 billion in annual sales, with a robust pipeline and margin-accretive effects.

• Six acquisitions completed in Q3, with annual sales of SEK 425 million; Magistor B.V. acquired after the quarter, adding SEK 165 million.

Financial highlights

• EBITA/EBITDA margin for Q3 was 14.6% (down from 14.8%), with EBITA at SEK 1,143 million, and gross margin at a record 35.5%.

• Earnings per share before dilution fell 4% to SEK 1.85, mainly due to lower operational results and higher tax costs.

• Cash flow from operating activities was SEK 1,016 million, stable year-over-year, with cash conversion at 133%.

• Net debt/EBITDA improved to 1.4x from 1.6x last year; net debt/equity at 48% versus 56%.

• Return on capital employed at 19%, unchanged year-over-year but slightly below target.

Outlook and guidance

• Market uncertainty persists for the coming quarter, but a larger order book and higher acquisition pace provide confidence in the financial trend.

• Cost adaptation and headcount reductions continue in companies with declining order intake, while growth companies selectively add staff.

• Expectation for costs to move sideways in Q4, with further cost reductions planned.

• Long-term outlook remains positive, supported by strong positions in growth industries and a scalable business model.