Nexam Chemical (NEXAM) Q3 2025 earnings summary

Executive summary

• Recycling sales surged 250% year-over-year, now accounting for 12% of total sales and establishing the segment as the main growth driver, with major clients ramping up to full-scale production.

• Net sales for Q3 2025 reached SEK 45.5 million, up 3% from Q3 2024, despite a generally slow market.

• The company is highly customer-oriented, with a diversified client base and scalable organization and production capacity.

• Heavy investment in recycling aims to capitalize on rapid market growth and global interest.

Financial highlights

• Gross margin stable at 46% (Q3 2024: 47%), expected to remain in the 45–50% range.

• EBITDA positive at SEK 0.7 million, impacted by a SEK 918,000–1 million bad debt reserve due to a UK customer insolvency.

• Operational cash flow of SEK 8.2 million and positive net cash flow for the quarter.

• Savings of SEK 45.5 million, slightly better than last year.

• Bank balance close to SEK 11 million, with an additional SEK 16.6 million borrowing capacity.

Outlook and guidance

• Recycling is expected to remain the primary growth engine, with potential to double or quadruple segment sales in coming years.

• No major operational bottlenecks anticipated in scaling production; machine and organizational capacity sufficient for significant growth.

• Cost base expected to remain stable, with the organization able to absorb growth without significant overhead increases.

• Macroeconomic uncertainty, especially regarding US trade, may impact future invoicing.

• No specific sales guidance for recycling due to variability in customer validation and ramp-up timelines.