Instalco (INSTAL) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 declined by 3.7% year-over-year to SEK 3,028 million, with LTM sales at SEK 13.4 billion.

• EBITA margin held steady at 6.0% in Q3, with adjusted LTM EBITA margin at 6.4%.

• Order backlog increased 5.8% year-over-year to SEK 9,026 million, with growth mainly driven by Norway.

• Margin improvement and operational excellence are top priorities, with a new country-based organization and updated operational model implemented.

• The German platform expanded to 20 companies through three new acquisitions, adding €19 million in annual sales.

Financial highlights

• Q3 net sales were SEK 3,028 million, down 3.7% year-over-year, with an organic decrease of 3.3%.

• Q3 EBITA was SEK 180 million, with a flat margin of 6.0%.

• Cash flow from operations in Q3 increased by 12% to SEK 133 million, with a rolling 12-month cash conversion of 112%.

• Service business grew 2% in Q3 and accounted for 37% of sales.

• Earnings per share before and after dilution were SEK 0.24 in Q3.

Outlook and guidance

• Margin improvement is prioritized over volume growth, with a target to return to at least 8% EBITA margin.

• Management expects organic growth to return as the market improves, with recovery anticipated in 2026.

• Strategic targets include ≥10% average sales growth, 8% EBITA margin, 100% cash conversion, and a 30% dividend payout ratio.

• New reporting segments and country-based organization to be fully in force by January 2026.