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 net sales at SEK 13.4 billion; order backlog increased 5.8% to SEK 9,026 million, maintaining a book-to-bill ratio near 70%.

• Service business grew 2% in Q3, now representing 37% of total sales, providing stability.

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

• Strong operational cash flow and disciplined working capital management offset lower earnings.

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

Financial highlights

• Q3 EBITA was SEK 180 million, with a margin of 6.0%, flat year-over-year; Q3 EBITDA margin was 9.3%.

• Adjusted LTM EBITA was SEK 863 million, with a margin of 6.4%, below the 8% target.

• Q3 cash flow from operations increased 12% year-over-year to SEK 133 million; rolling 12-month cash conversion rate at 112%.

• SEK 160 million paid for minority share buybacks and SEK 67 million for Fabri-related performance payment.

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

Outlook and guidance

• Margin improvement remains the main focus, with operational excellence prioritized over volume growth and a target to return to at least 8% EBITA margin.

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

• Market recovery anticipated in 2026, with ongoing efforts to strengthen capabilities for future growth.

• New reporting segments and country-based organization to be fully in force by January 1, 2026.