Lifco (LIFCO) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 increased 8.9% year-over-year to SEK 6,842 million, with EBITA up 10.4% to SEK 1,543 million and net profit rising 18.9% to SEK 900 million; for the nine months, net sales grew 9.0% to SEK 20,717 million, EBITA rose 7.4% to SEK 4,600 million, and net profit increased 10.6% to SEK 2,624 million.

• Organic growth contributed 4.3–5% and acquisitions 7.4–8% to net sales, offset by negative FX effects of 2.8–4%.

• EBITDA/EBITA margin for Q3 was 22.6%, and for nine months 22.2%, with strong cash flow and a solid financial position maintained.

• Net profit in Q3 was boosted by a one-time SEK 63 million deferred tax revaluation due to future German tax rate changes.

• 13 new businesses consolidated in the first nine months, adding SEK 1,870 million in annual net sales and about 300 employees.

Financial highlights

• EBITA for Q3 up 10.4% to SEK 1,543 million; margin improved to 22.6%.

• Earnings per share for Q3 rose 19.5% to SEK 1.96; for nine months, up 11.1% to SEK 5.71.

• Operating cash flow for Q3 increased 16.4% to SEK 1,394 million; nine months up 4.2% to SEK 3,138 million.

• Return on capital employed (ROCE) for the period was 20.5%; excluding goodwill, ROCE was 131%.

• Net debt/EBITDA at 1.9x; interest-bearing net debt/EBITDA at 1.3x.

Outlook and guidance

• Focus remains on organic EBITA growth above GDP in relevant geographies, with acquisitions to supplement growth.

• Financial position remains strong, with net debt/EBITDA well below the target of 3x.

• Acquisition activity is expected to continue, with disciplined focus on high-margin, niche companies.

• No major issues anticipated from tariffs overall, though some individual companies are affected.

• Dividend payout policy of 30-50% of net profit.