Latour (LATO) Q3 2025 earnings summary

Executive summary

• Operations and investment portfolio achieved growth despite challenging market conditions, with strong order intake and resilience across most business areas.

• Net asset value per share decreased by 0.6% to SEK 210, underperforming the SIXRX index, which rose 5.8%.

• Acquisition activity remained high, with seven acquisitions and one divestment completed, adding SEK 1.8 billion in annual net sales.

• Focus remained on long-term sustainable value creation and responsible ownership.

• Total return on the share was -17.8% for the period.

Financial highlights

• Adjusted operating profit rose to SEK 936 million, with an operating margin of 13.9%.

• Consolidated net sales rose 10% year-over-year to SEK 20,730m for the nine months.

• Profit after financial items fell to SEK 3,766m (from SEK 5,315m), and profit after tax was SEK 3,346m (from SEK 4,736m).

• Share price at quarter-end was SEK 223, a 6% premium to net asset value; as of early November, SEK 238, a 10% premium.

• Net debt ranged from SEK 16.8 billion to SEK 18.4 billion, representing 11% of investment market value.

Outlook and guidance

• Order backlog of SEK 6,760m supports positive sales development in coming quarters.

• Financial targets remain: annual growth above 10%, operating margin above 15%, and return on operating capital above 15% over a business cycle.

• Demand remains difficult to predict due to geopolitical uncertainty and weak construction sector.

• Continued investments in growth initiatives and R&D are expected to pressure margins short-term but support long-term profitability.